The first step has been taken today

Hello,

we also live in a rural area and I can tell you that with €220,000 it will be very difficult but it is still doable.

We have also reserved a plot of land for €51,000. The additional construction costs for the foundation will be around €30,000, Nahbar even needed only €25,000. If you then find a house provider who builds for €140,000, then you are at a total cost of €221,000.

The problem is, if you want something good for your money, then you have to spend at least €150,000 for the solid house, that's just how it is in our area.

Best regards

Experience Values for Additional Costs/Incidental Expenses

Hey,

as promised, I wanted to get back to you once we had a chance to calmly review plots of land, house types, financing options, etc.

Here’s what has happened:

We can now plan with approximately €50,000 in equity. A beautifully shaped plot of land, 700 sqm in size and south of Bremen, would cost us €65,000, fully developed, purchase from a private seller.

The type of house we have in mind with 142 sqm net living space, Kfw 70, and corresponding extra wishes would be priced at €175,000 (we could leave out the bathrooms, as the father-in-law will do those himself). The developer has been in business for over 100 years, financial stability at least according to Creditreform is given. The kitchen we have in mind would cost an additional €15,000.

The perhaps too general question I have about this:

Based on your experience, what would you add on top of the three amounts above to have a good buffer for incidental costs, additional costs, etc.

Our current consideration is to use €50,000 equity plus a €240,000 loan.

Best regards and have a nice weekend

Thank you very much, construction expert - we will continue saving ;)

Once again, a little feedback from my side on how our remaining conversations went:

The tenor of all conversations was that building in the northwest of Germany is considerably cheaper than in many other parts of Germany – both in terms of land prices and construction itself. Difficult to judge, it is certainly cheaper than in West and South Germany – but incomes there are of course also higher.

The various construction contractors mostly first dealt with the additional construction costs, which actually went very exemplary, as I had the tips and information from the forum in mind. All contractors calculated generously without the kitchen at around €20,000 - €25,000 (foundation costs, connections, etc.). We were told that the additional construction costs can be estimated very well, since one knows and can assess the plot or neighboring plots very well (how much such a statement is worth is difficult for me to judge).

Then there were of course differences in the services themselves, which were already included in the offer prices. KFW 70 houses with solar and ventilation system, triple-glazed windows (without going into the brands), 142 m2 net living area, underfloor heating, electric shutters, staircase as desired, fully wallpapered, tiles downstairs as desired, carpet upstairs except for the children's room, sockets and electrics as desired, carport, etc., we mostly ended up around €175,000 - €190,000. In addition, €5,000 - €10,000 was recommended as a safety margin.

Just roughly summarized once, maybe it helps one or the other.

In your position, I would take advantage of the low interest rate!

And a little update:

We have decided on two providers and will soon have these offers reviewed by a construction expert who is not unknown in the forum.

Where we have ultimately landed (before review):

Equipment as already mentioned above plus a few additional extras - €200,000 excl. carport/garage.

The calculation we made with the financial advisor of our choice is as follows:

House: €200,000
Land including additional costs: €69,000
Additional costs (connections, earthworks, etc.): €20,000
Kitchen: €18,000
Reserve for sampling: €10,000

Effective interest rate for a loan of €250,000 / 20 years = 3.25 %

This is for the information of all interested parties, comments, including on the interest rate, are of course always welcome.