Presentation of a construction financing variant

Hello toxic.. You have been around for a while and have already read quite a bit.

And if I have the feeling that the architect worked with a very tight pencil, then you should have that feeling too. I have no idea how expensive a shell construction is because we built turnkey, but what is included in the 2000 € tiles? Probably not baseboards or a corner profile. How many sockets are included in the 6000 € for electrics? An outdoor lamp is probably included, but not 2 or 4. What do the 2000 € for the fireplace cover? Where is the chimney? What are you doing with the rainwater? Earthworks also seem to be very minimally estimated. There are definitely additional costs, much to my regret. Oh, and so many small things eat up a buffer that you haven't even planned for yet.

I’m keeping my fingers crossed, Regards Yvonne

Good morning construction expert, good morning ypg,

I want to start with the ancillary construction costs and refer to your list, construction expert.

1. Property
- 5% property transfer tax - varies by municipality - (no longer relevant, we already own the property)
- possibly agent fees, approx. 3.57% of the property price – varies by municipality (not relevant, we already own the property)
- approx. 2% notary fees, calculated from the property price (no longer relevant, we already own the property)
3 x entry in the land register (1. priority notice of conveyance, 2. ownership transfer, (no longer relevant, we already own the property)
3. entry of the land charge) Yes, the land charge(s) have to be registered, 1,000 EUR


2. Financing

- possibly advisory/closing costs for financing, approx. 1.5% of the total loan amount Yes, 0.4% of 85,000 EUR = 340 EUR, no further fees, tax costs, etc.
- approx. 0.25% commitment interest, based on the loan amount - There won’t be any, we should be done within 12 months. And if not, repayment will start then.


3. Construction Preparation
- approx. € 2,800 - € 3,200 surveying services (qualified site plans / height surveying /
staking out / building survey) - Yes, correct. 2,500 + VAT, but included in item planning services
- provision of connections for construction water / construction power, approx. € 6.00 - € 8.00 rental for standpipe/day, approx. € 300 rental for construction power meter plus consumption Power and water connection already on the property, consumption costs will be incurred. 1,000 EUR
- fees (for house number, drainage permit, building permit), approx. € 1,000 - € 1,500, varies by municipality All already done, about 500 EUR
- builder’s liability insurance approx. € 80 - € 150/year, depending on insurance company about 100 EUR


3. Earthworks
- removal of excess soil (normal soil conditions) with cellar, approx. € 1,500 - no cellar
- internal development (sewage/stormwater pipes), approx. € 2,500 – depending on pipe routing - material only needed, 1,500 EUR
- inspection shafts, soakaway or infiltration shaft, approx. € 1,900 - € 2,200 - Good question, will be clarified.
- reserve for foundation ancillary costs approx. € 8,000 for soil replacement and/or similar - Will only become relevant if acutely necessary. Neighboring building was without foundation additional costs.


4. Utility Connection Costs
- electricity/gas/water/telecom, connection to sewage system, approx. € 8,000 - € 8,500 - varies by municipality Electricity yes, 1,500 EUR, water, telecom only internal development 1,000 EUR


5. Fees
- acceptance of the drainage pipe, approx. € 150 - varies by municipality
- chimney sweep (acceptance of chimney / gas system - note fee charged twice), approx.
€ 200 - varies by municipality
- cadastral office (transfer of the surveyor’s data into the land register map), approx. € 150 – varies by municipality
I’ll just take these positions as a flat rate. 500 EUR

I understand your skepticism, but as you can see we are already quite far along with the planning and have been fairly generous with the ancillary construction costs. Let’s leave it at 12-13,000 EUR including VAT still open according to your list. My accounting shows about 18,000 EUR for this position. So I’m quite relaxed about it.

Regarding worries about construction costs, I do share concerns about price increases to some extent. However, our architect has repeatedly emphasized despite inquiries that this should more or less work out. Of course, I have to wait for the tender and the offers; before that it’s more crystal ball than planning. But the architectural firm has been doing the job for well over 20 years. They really shouldn’t misplan completely. But of course, I will continue to report.

Regarding ypg’s questions:
*The 2,000 euros for tiles are... good question, will be asked. Expensive for the tile backsplash in the kitchen, too little for simple floor tiles, for the bathroom... no idea. I take note of the hint.
*The electrics include about 100 sockets, 20 switches, 10 push buttons, 7 roller shutter controls, 7 network sockets, 6 coax sockets, 4 audio sockets, 6 smoke detectors, a doorbell, 24 fuses, 3 RCDs, 2 RCBOs, meter and fuse cabinet - However, these are equity prices from my uncle-in-law, who as an electrician is also doing the entire installation including meter application. He estimates about 4,500 EUR, we have assumed 6,000 EUR with a safety margin in case we get wild ideas. And if anyone asks when he wants to do it... he gives himself 1 week with a helper plus here and there another weekend if time gets tight.
*For earthworks, there is a garden landscaper in our circle of friends whom I can bring in. He has already demolished a garage including foundation and driveway in two days for us. I can always fall back on him at a friendly price that is unbeatable. The only thing we had no influence on were disposal costs, but these were also lower than planned.
*Sorry, not chimney, flue. I count the chimney under furniture. And I do not consider that part here since no construction costs.

My partner has a comparable object in his records; regardless of the fact that the dimensions will probably hardly be correct. The costs amount to EUR 207,000 as a KfW 70 efficiency house; turnkey (without painting and flooring), including all engineering and planning services. A photovoltaic system including storage would cost EUR 15,000, a geothermal heat pump EUR 12,000 with 2 drillings, a stainless steel chimney EUR 3,500, a prefabricated garage 3 x 9 EUR 11,000; all subject to surcharges. Therefore, I can hardly imagine that your architect can award the trades as you have quantified them above. However, I keep my fingers crossed for you.

Are these net or gross prices, construction expert?
In total, I would come up with EUR 249,000 for you. I would come up with (what a coincidence) EUR 249,000 including VAT for myself.

So our difference is at most the value added tax. Tell me that these are gross costs for you as well. Otherwise, I wonder where I should find EUR 50,000 if your estimate is correct.

Good morning,

Are these net or gross prices, Bauexperte?
In total, I come to 249 TEUR with you. I come to (what a coincidence) 249 TEUR including VAT on my side.

So our difference is "at most" the VAT. Tell me that these are gross costs for you as well. Otherwise, I wonder where I should get 50 TEUR from, if your estimate is correct.

In external dealings, "only" gross prices may be used; insofar, this concern of yours is unfounded ;)

However, I realize that I should have (had to) phrase it differently. The provider of my partner builds a lot more than just 20 houses per year ;); therefore, quite different purchasing conditions apply in the calculation. Since my partner and I generally cooperate in our two business areas, always jointly take care of all customers, I logically know many suppliers and craftsmen personally very well. I can thus rely on certain conditions but far from receive the full advantages, since I build significantly fewer units per year with my business.

When I read your figures, I found them superficially acceptable – even if the numbers shift here and there – but I asked/am asking myself whether your architect (even with 20 years of market presence) can actually enforce these prices; this requires very good purchasing advantages. The "risk" with awarding via architect is always the fixed price, which is not granted, otherwise the architect would act as a general contractor. If a return (completed tender) deviating from the cost estimate is added, financing – especially a tight one – can very quickly fail.

I keep my fingers crossed that I am wrong.

Rhenish greetings

Yeah yeah, in the external relationship... just believe how often I as an end customer have already received net prices. I'm not surprised that others then wonder about invoices. In almost every phone call, whether craftsmen, building supply stores, electrical specialty stores, disposers, container services, suddenly the taxes came on top. By now I prefer to ask one more time.

We are aware of the risk of free price negotiation, I give my planner the corresponding benefit of the doubt. He will also have his sources. I will report on how it continues.

Yeah yeah, in the external relationship... just imagine how often I as an end customer have already received net prices. I'm not surprised that others then wonder about invoices. In almost every phone call, whether craftsmen, building supply stores, electronics stores, disposal companies, container services, suddenly taxes came on top. By now I prefer to ask one more time.

Oh yes. I've experienced that more than enough by now. But I've also successfully stood my ground when suddenly VAT was supposed to be added at the end.