Hello everyone,
after posting the question “extension or new build” in another thread yesterday, and already leaning toward a new build, I’m now trying to make a “plan” for what I actually need to do...
My problem is knowing what step to take first.
Of course, I first need to find out whether I can even finance the project.
For that, the bank advisor wants to see a cost estimate for the project so they can tell me if it’s financially feasible.
To create a reasonably accurate cost estimate, I need a building plan and quotes.
But I can only get those once the architect knows the plot and the other conditions.
However, I don’t have the plot yet, so I don’t know its costs or the conditions.
It’s a bit of a catch-22.
Intuitively, I would say I estimate the costs as accurately as possible. That only works with a lot of reading, calculating, and thinking. But how do I tell good advice from bad?
I can fairly well narrow down what the plot will cost. Real estate portals like Immowelt and others offer plenty of information to estimate these costs. With €120,000 including all fees (property transfer tax, notary, soil analysis), I should be safe here in our region (Saarland)—if anything, a bit on the low side.
The additional construction costs were already well outlined in a related thread here—I should be fine with €50,000, judging from a quick read of that thread (I plan to study it more thoroughly once I get started).
But how do I arrive at a price for the house? Prefabricated house suppliers offer attractive prices, but something is always off with the example plans. And every change adds cost. On top of that, there are many negative reports about these prefab houses. This actually makes me want to work with a local architect I know, who I would potentially entrust with the whole project and its supervision. On the other hand, I worry whether such a “small” architect is really the best choice for me, or whether, due to other projects, they might not devote as much attention to my project as I expect...
I’ve gotten a bit off-topic—but these questions are really pressing for me.
Back to the main point: Rules of thumb like X€ per square meter or Y€ per cubic meter only provide a rough guideline. When I include features like a granny flat, garage, and so on, I can’t seem to come up with a number I, as a complete layperson, can really “understand.”
If I calculate, say, 250m² (2700 sq ft) of living space at €2000 per m² (€185 per sq ft), I’m already at €500,000 excluding the plot, additional construction costs, or anything else. That sounds excessive for a detached house with a granny flat...
If I calculate based on a footprint of 10 × 14m (33 × 46 ft), two full floors (each 3m (10 ft) high), and a standard pitched roof (1.5m (5 ft) average height), I get 10 × 14 × (2 × 3 + 1.5) = 1050m³ (37,100 ft³) of enclosed volume, which, at €400 per m³ (€11 per ft³), comes to €420,000. That still sounds like a lot for a detached house with a granny flat, right?
Considering that a bathroom, at €25,000, is probably the “most expensive” room (I have an offer for the extension we once planned), I can’t imagine the house costing 20 times that amount!
I’m looking for someone, preferably several people, who can guide me step by step and show me how to approach this.
The more blogs, forums, and pages I read, the more confused I get. That’s why I’m creating this own thread here, hoping it will lead me to the goal—or at least show me the way...
Best regards,
Xorrhal & Family
after posting the question “extension or new build” in another thread yesterday, and already leaning toward a new build, I’m now trying to make a “plan” for what I actually need to do...
My problem is knowing what step to take first.
Of course, I first need to find out whether I can even finance the project.
For that, the bank advisor wants to see a cost estimate for the project so they can tell me if it’s financially feasible.
To create a reasonably accurate cost estimate, I need a building plan and quotes.
But I can only get those once the architect knows the plot and the other conditions.
However, I don’t have the plot yet, so I don’t know its costs or the conditions.
It’s a bit of a catch-22.
Intuitively, I would say I estimate the costs as accurately as possible. That only works with a lot of reading, calculating, and thinking. But how do I tell good advice from bad?
I can fairly well narrow down what the plot will cost. Real estate portals like Immowelt and others offer plenty of information to estimate these costs. With €120,000 including all fees (property transfer tax, notary, soil analysis), I should be safe here in our region (Saarland)—if anything, a bit on the low side.
The additional construction costs were already well outlined in a related thread here—I should be fine with €50,000, judging from a quick read of that thread (I plan to study it more thoroughly once I get started).
But how do I arrive at a price for the house? Prefabricated house suppliers offer attractive prices, but something is always off with the example plans. And every change adds cost. On top of that, there are many negative reports about these prefab houses. This actually makes me want to work with a local architect I know, who I would potentially entrust with the whole project and its supervision. On the other hand, I worry whether such a “small” architect is really the best choice for me, or whether, due to other projects, they might not devote as much attention to my project as I expect...
I’ve gotten a bit off-topic—but these questions are really pressing for me.
Back to the main point: Rules of thumb like X€ per square meter or Y€ per cubic meter only provide a rough guideline. When I include features like a granny flat, garage, and so on, I can’t seem to come up with a number I, as a complete layperson, can really “understand.”
If I calculate, say, 250m² (2700 sq ft) of living space at €2000 per m² (€185 per sq ft), I’m already at €500,000 excluding the plot, additional construction costs, or anything else. That sounds excessive for a detached house with a granny flat...
If I calculate based on a footprint of 10 × 14m (33 × 46 ft), two full floors (each 3m (10 ft) high), and a standard pitched roof (1.5m (5 ft) average height), I get 10 × 14 × (2 × 3 + 1.5) = 1050m³ (37,100 ft³) of enclosed volume, which, at €400 per m³ (€11 per ft³), comes to €420,000. That still sounds like a lot for a detached house with a granny flat, right?
Considering that a bathroom, at €25,000, is probably the “most expensive” room (I have an offer for the extension we once planned), I can’t imagine the house costing 20 times that amount!
I’m looking for someone, preferably several people, who can guide me step by step and show me how to approach this.
The more blogs, forums, and pages I read, the more confused I get. That’s why I’m creating this own thread here, hoping it will lead me to the goal—or at least show me the way...
Best regards,
Xorrhal & Family
Lanini schrieb:
Our architect calculated 325 € per m³ (11.4 ft³) for the residential building and 175 € per m³ (6.2 ft³) for the garage. Plus incidental costs. Plus exterior landscaping. Plus the plot of land, etc... But this includes all “special features” like electric shutters throughout, some venetian blinds, a ventilation system, colored windows, and so on. We are currently still under construction, but apart from some flooring and exterior landscaping—which is roughly planned—the entire selection of materials and specifications is finalized. We are now at the stage of rough installation for electrical, plumbing, and ventilation, so the shell of the building is fully enclosed. I have to say, at the moment it looks like we will hit our budget precisely, and the rough cost estimate seems to be spot on.
We are building 160 m² (1,722 ft²) plus a large double garage. However, we are building in an affordable region (rural Rhineland-Palatinate). These prices likely would not be possible elsewhere anymore, at least not if you go above standard finishes.
Regarding the process: First, we went to our house bank for a rough consultation. We explained the monthly payment we were comfortable with, and based on that, the advisor gave us an approximate loan amount that seemed feasible. Since that amount roughly matched our planned budget and desired house size (we had calculated based on x m² times x €), we then hired an architect and discussed our wishes and ideas with him. Afterwards, he made the above calculation of 325 € per m³ (11.4 ft³). We then fully planned the house with him. He obtained quotes from the various trades for the planned house and provided us with a detailed cost breakdown based on the actual offers from the contractors involved, which matched or was even slightly below the previous rough estimate per m³. With these numbers, we returned to the bank, applied for the loan with a little buffer, and construction began. As mentioned, it currently looks like the budget will be exact to within 1,000 € (about $1,100). Of course, this could be very different in other regions or with different requirements.For finishes, the price where I am (30 km (18 miles) from Nuremberg, in a rural area) is unrealistic. The only things left at 400 m³/€ (14.1 ft³/$) are the ventilation system and the colored windows.
Yes, building here does seem to be somewhat cheaper compared to other parts of Germany (though I still find it expensive 😀). I have noticed this mentioned quite often. However, I have to add that we can only maintain this price by working with an architect and using individual contracts, with local contractors (and by "local," I mean from our village or neighboring villages) and our experienced architect who already knows which companies deliver good quality at a reasonable price. The quotes from prefab house suppliers or turnkey builders (solid construction) were noticeably higher when comparing the same level of features. That is why building here with an architect and individual contracts is so popular in this region; very few build with a general contractor because it is simply more expensive.
Ok, the ratio between the footprint and the living area sounds logical. How is the footprint-to-living-area factor determined?
Roughly, I am planning to build 1000m³ (35,300 cubic feet) excluding the garage and basement. Depending on the price per cubic meter, that would result in costs between €325,000 and €400,000.
I would also classify our area as “rather affordable.” The architect said that with €350/m³ (about $350/cubic yard) you can achieve a livable standard everywhere, at €380/m³ (about $380/cubic yard) you get a well-equipped home, and at €400/m³ (about $400/cubic yard) you are clearly above standard.
Even though we are probably quite modest, I don’t want to have to give up certain things.
For the extension (didn’t I mention that before?) we received an offer for the bathroom including everything we wanted, such as lighting, stretch ceiling, and tiles, for just under €19,000. It won’t cost more than that in the new build either.
Our current kitchen cost €6,000, and a new one definitely won’t be more than €10,000.
That’s a rough reference for the “standard” we expect. We’re not aiming for gold-plated faucets.
But costs are only part of the question. Or should I just go to the bank and say to the advisor, “Hello, I need €700,000 for a new build”? I suspect I might as well call to cancel the appointment…
€700,000 at 2% interest and 2% repayment would mean monthly payments of over €2,000 – that’s nearly 50% of the net income, and no bank would agree to that.
Roughly, I am planning to build 1000m³ (35,300 cubic feet) excluding the garage and basement. Depending on the price per cubic meter, that would result in costs between €325,000 and €400,000.
I would also classify our area as “rather affordable.” The architect said that with €350/m³ (about $350/cubic yard) you can achieve a livable standard everywhere, at €380/m³ (about $380/cubic yard) you get a well-equipped home, and at €400/m³ (about $400/cubic yard) you are clearly above standard.
Even though we are probably quite modest, I don’t want to have to give up certain things.
For the extension (didn’t I mention that before?) we received an offer for the bathroom including everything we wanted, such as lighting, stretch ceiling, and tiles, for just under €19,000. It won’t cost more than that in the new build either.
Our current kitchen cost €6,000, and a new one definitely won’t be more than €10,000.
That’s a rough reference for the “standard” we expect. We’re not aiming for gold-plated faucets.
But costs are only part of the question. Or should I just go to the bank and say to the advisor, “Hello, I need €700,000 for a new build”? I suspect I might as well call to cancel the appointment…
€700,000 at 2% interest and 2% repayment would mean monthly payments of over €2,000 – that’s nearly 50% of the net income, and no bank would agree to that.
Due to the high total cost, we financed the land and the house separately, accepting the risk of rising interest rates. The land will be fully paid off by the end of this year, and then we will start financing the house.
I find the current prices being asked quite outrageous. However, I have to accept them because A) I want to have a single-family home now, and B) I am unable to contribute any DIY work (by that I mean paving and tiling, not painting).
We have just under €5300 without bonuses or profit shares available, and I’m really anxious about the amount I will need to borrow.
How much do you need to borrow? €350,000 / €400,000?
I find the current prices being asked quite outrageous. However, I have to accept them because A) I want to have a single-family home now, and B) I am unable to contribute any DIY work (by that I mean paving and tiling, not painting).
We have just under €5300 without bonuses or profit shares available, and I’m really anxious about the amount I will need to borrow.
How much do you need to borrow? €350,000 / €400,000?
Would you easily get €700,000 (about $740,000)? I often see prices per square meter around €1,800 to €2,000 (about $1,900 to $2,100). These prices don’t include any luxury fittings or complicated plots of land. I would use that as a reference. If that doesn’t help, you can try it the other way around and see what kind of loan you could get based on your income and equity. Then you can choose the house size accordingly.
We are essentially banking on the announced child housing allowance—though first it needs to be clear whether we qualify based on our income. Currently, the limit is €70,000 gross income (approximately $75,000), but it’s uncertain whether child benefits and similar payments are included, and whether the calculation is done annually or only at the start of the financing. At the start, my wife probably won’t be working yet, and only after a few years will her income increase enough to approach the €70,000 gross (about $75,000) threshold. Right now, my gross income is about €55,000 (approximately $59,000), and hers is €5,400 (roughly $5,800) from a part-time 450-euro (about $490) job.
Additionally, we’re hoping for KfW grants and subsidies.
If we can sell the house we currently own with a “profit” of €100,000 (about $108,000), that would, of course, be a huge help.
Then, at least in theory, it would be feasible—at least according to my household budget planning.
Additionally, we’re hoping for KfW grants and subsidies.
If we can sell the house we currently own with a “profit” of €100,000 (about $108,000), that would, of course, be a huge help.
Then, at least in theory, it would be feasible—at least according to my household budget planning.
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