ᐅ Rental House – Prefabricated House or Traditional Brick Construction
Created on: 13 Feb 2017 13:51
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DimmaWe want to build a house to rent out. Nothing "fancy," just two apartments stacked on top of each other (each about 90 sqm (970 sq ft)), with two garages...
We are currently undecided about what makes more sense: a prefabricated house or a conventional brick-built house?
We have found that there is probably not much difference in price.
It should be a turnkey house. Financing is not an issue due to an inheritance, and the building plot is already available.
Can anyone offer some guidance or points to consider?
We are complete beginners when it comes to building a house, and the construction companies can say a lot.
What should we pay attention to?
We are currently undecided about what makes more sense: a prefabricated house or a conventional brick-built house?
We have found that there is probably not much difference in price.
It should be a turnkey house. Financing is not an issue due to an inheritance, and the building plot is already available.
Can anyone offer some guidance or points to consider?
We are complete beginners when it comes to building a house, and the construction companies can say a lot.
What should we pay attention to?
P
Peanuts7413 Feb 2017 14:19The big "controversial question" – you’ll probably hear each side praising the supposed advantages of their construction method.
In my opinion (having worked extensively with both), a prefabricated house mainly has advantages if you plan to do a lot of the installations yourself (water, heating, electrical, etc.) or want to contribute significant self-labor.
For example, with the installations, you avoid all the chasing for pipes and cables, and it’s easier to screw drywall panels onto a wall and fill the joints than to plaster a wall.
Also, thinner walls allow for better thermal insulation, which can be important if the building envelope is limited.
If you have enough space and opt for a turnkey build, in my view almost all advantages disappear. Additionally, a high-quality prefabricated house is often more expensive than a solid (masonry or concrete) house.
Some here claim that soundproofing is not an issue in a prefab house, but I’ve often experienced the opposite during inspections.
Especially if two separate apartments are to be created, I would focus on the best possible sound insulation. In my opinion, a 20cm (8 inches) thick concrete ceiling clearly outperforms a wood beam ceiling in this regard.
The depreciation and valuation by banks and insurance companies have also been discussed at length.
The fact is that used prefabricated houses often receive lower appraisals for refinancing than solid houses.
Similarly, prefabricated houses are valued lower in property insurance (meaning you get less compensation in case of a claim), yet the premium—your cost—is the same or even higher.
Also, it cannot be ignored that water damage in timber-frame houses tends to have far more severe consequences.
In summary, prefabricated houses definitely have their place under certain conditions. However, especially as pure investment properties, they offer no significant advantages and rather present several disadvantages.
In my opinion (having worked extensively with both), a prefabricated house mainly has advantages if you plan to do a lot of the installations yourself (water, heating, electrical, etc.) or want to contribute significant self-labor.
For example, with the installations, you avoid all the chasing for pipes and cables, and it’s easier to screw drywall panels onto a wall and fill the joints than to plaster a wall.
Also, thinner walls allow for better thermal insulation, which can be important if the building envelope is limited.
If you have enough space and opt for a turnkey build, in my view almost all advantages disappear. Additionally, a high-quality prefabricated house is often more expensive than a solid (masonry or concrete) house.
Some here claim that soundproofing is not an issue in a prefab house, but I’ve often experienced the opposite during inspections.
Especially if two separate apartments are to be created, I would focus on the best possible sound insulation. In my opinion, a 20cm (8 inches) thick concrete ceiling clearly outperforms a wood beam ceiling in this regard.
The depreciation and valuation by banks and insurance companies have also been discussed at length.
The fact is that used prefabricated houses often receive lower appraisals for refinancing than solid houses.
Similarly, prefabricated houses are valued lower in property insurance (meaning you get less compensation in case of a claim), yet the premium—your cost—is the same or even higher.
Also, it cannot be ignored that water damage in timber-frame houses tends to have far more severe consequences.
In summary, prefabricated houses definitely have their place under certain conditions. However, especially as pure investment properties, they offer no significant advantages and rather present several disadvantages.
Thank you, Peanuts74, for the detailed and easy-to-understand answer!
If it's a brick house... is a "residential construction company" (which builds quite a few apartment buildings around here) sufficient, or do I actually need an architect?
Sorry for the "silly" questions, but if you’ve never built a house before, you first face a wall of fundamental questions…
If it's a brick house... is a "residential construction company" (which builds quite a few apartment buildings around here) sufficient, or do I actually need an architect?
Sorry for the "silly" questions, but if you’ve never built a house before, you first face a wall of fundamental questions…
Prefabricated does not necessarily mean wood panel construction, and solid construction does not always mean brick. Aerated concrete is now just as common.
You will always find plenty of pros and cons when it comes to the choice between solid or prefabricated houses, and the longer you ask, the more the balance of comments tends toward 50:50.
Basically, I tend to see prefabricated house suppliers nowadays as general contractors to whom you can submit the same preliminary designs for quotes as you would with solid construction builders.
Unfortunately, at the moment, prefabricated house suppliers generally only offer semi-detached houses under the keyword “two-family house” (which can also be built on an undivided plot, although this usually attracts a different tenant clientele than single-floor apartments).
Due to the trend toward individual designs, an old advantage of prefabricated houses (well-developed because they have been built exactly the same way 100 times) has been lost.
Prefabricated house suppliers mostly build in a current fashionable style, while local solid construction builders tend to produce similar-looking designs, even over decades.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
You will always find plenty of pros and cons when it comes to the choice between solid or prefabricated houses, and the longer you ask, the more the balance of comments tends toward 50:50.
Basically, I tend to see prefabricated house suppliers nowadays as general contractors to whom you can submit the same preliminary designs for quotes as you would with solid construction builders.
Unfortunately, at the moment, prefabricated house suppliers generally only offer semi-detached houses under the keyword “two-family house” (which can also be built on an undivided plot, although this usually attracts a different tenant clientele than single-floor apartments).
Due to the trend toward individual designs, an old advantage of prefabricated houses (well-developed because they have been built exactly the same way 100 times) has been lost.
Prefabricated house suppliers mostly build in a current fashionable style, while local solid construction builders tend to produce similar-looking designs, even over decades.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
Dimma schrieb:
a "residential construction company" (one that builds quite a few rental apartment buildings around here)... would be my absolute last choice — mainly because they tend to build the same style and standard repeatedly, so in the rental market you end up with a property that hardly differs from what they build for themselves.
Dimma schrieb:
or do I really need an architect after all?Your own architect represents the client’s interests and advises them — a drafting professional working for the contractor has different priorities and perspectives, but in the end doesn’t necessarily cost less.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
P
Peanuts7413 Feb 2017 14:50A residential construction company, as you call it, or a general contractor usually has their own architect who prepares the plans for the building permit / planning permission. They also often take care of various aspects of the construction process. In other words, if you know a good general contractor (GC), you will have less work and stress during the build.
At the same time, they can normally give you a fixed price based on the planning, excluding any additional costs from selecting fixtures and finishes.
It is important to carefully study the scope of work description (scope of work) and possibly compare it with other offers. For example, what price per square meter is assumed for tiles, how many power outlets, LAN connections, TV connections, etc. are included...
Extremely IMPORTANT—anything not listed in the scope of work is usually not included. Never rely on verbal agreements here, especially if the contract probably states that only written agreements are valid.
So why build with an architect? For some, it may have actually been cheaper in the end, although this does not match the experiences within my circle of acquaintances. However, an architect is often more flexible and can potentially better implement your individual wishes, whereas general contractors often prefer to build only their five standard house types to keep costs down.
However, when it comes to a rental property, the question arises whether it needs to be a highly sophisticated, custom-designed floor plan tailored exactly to your needs, or if it would be better to have two good and reasonably laid-out three- or four-room apartments.
At the same time, they can normally give you a fixed price based on the planning, excluding any additional costs from selecting fixtures and finishes.
It is important to carefully study the scope of work description (scope of work) and possibly compare it with other offers. For example, what price per square meter is assumed for tiles, how many power outlets, LAN connections, TV connections, etc. are included...
Extremely IMPORTANT—anything not listed in the scope of work is usually not included. Never rely on verbal agreements here, especially if the contract probably states that only written agreements are valid.
So why build with an architect? For some, it may have actually been cheaper in the end, although this does not match the experiences within my circle of acquaintances. However, an architect is often more flexible and can potentially better implement your individual wishes, whereas general contractors often prefer to build only their five standard house types to keep costs down.
However, when it comes to a rental property, the question arises whether it needs to be a highly sophisticated, custom-designed floor plan tailored exactly to your needs, or if it would be better to have two good and reasonably laid-out three- or four-room apartments.
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