ᐅ Prefabricated House or Traditional Solid Construction Companies – Budget
Created on: 13 May 2020 12:56
C
Cary2020
Hello everyone. As you can see, I am new here and looking for advice. We are 25 and 27 years old, both employed, and our monthly net income is 3100 € (approximately $3,400). We have no equity saved up (we are already aware of the risks). Now, by coincidence, we have found a plot of land. It’s the only one in the area that meets our expectations (small, no more than 500 m² (6000 sq ft)). It was more or less a “random find.” Although we had agreed that we wanted to build a house someday, we hadn’t expected it to happen so soon. We want to build at the edge of the Harz mountains, in Lower Saxony. That’s the basic info.
Over the past few days, we have spent a lot of time researching the topic but have not reached any concrete conclusions yet. We have had initial phone appointments with banks; even without equity, it’s not impossible, and some very reputable, well-known banks were involved. We have further appointments with first companies and additional banks planned for next week. However, I would also like to connect with “regular” homeowners to get realistic assessments because we probably belong to this group ourselves.
Does anyone have experience with building a house at our income level? Is it feasible not only on paper but also in reality?
Then the big question arises: do we want a traditional solid house (brick and mortar) or a prefab house? Twenty years ago, when my parents built their home, prefab houses had a bad reputation. Nowadays, that seems to have improved significantly. Basically, we are still undecided. We see major advantages with prefab houses in the absence of moisture problems, clearly the price (is that really the case?), and according to experience reports, there is less shoddy workmanship. I’m hoping to learn from your experiences here.
The last point, of course, will be contacting companies. I am a bit hesitant about regional developers and would prefer to get in touch with larger firms like Viebrockhaus (probably quite expensive), Massa Haus, Arge, etc. Here too, I hope to have an initial exchange with you.
As you can see, we are just starting out and would like to bring some orientation to our confusion of thoughts. Thanks in advance for your help.
Over the past few days, we have spent a lot of time researching the topic but have not reached any concrete conclusions yet. We have had initial phone appointments with banks; even without equity, it’s not impossible, and some very reputable, well-known banks were involved. We have further appointments with first companies and additional banks planned for next week. However, I would also like to connect with “regular” homeowners to get realistic assessments because we probably belong to this group ourselves.
Does anyone have experience with building a house at our income level? Is it feasible not only on paper but also in reality?
Then the big question arises: do we want a traditional solid house (brick and mortar) or a prefab house? Twenty years ago, when my parents built their home, prefab houses had a bad reputation. Nowadays, that seems to have improved significantly. Basically, we are still undecided. We see major advantages with prefab houses in the absence of moisture problems, clearly the price (is that really the case?), and according to experience reports, there is less shoddy workmanship. I’m hoping to learn from your experiences here.
The last point, of course, will be contacting companies. I am a bit hesitant about regional developers and would prefer to get in touch with larger firms like Viebrockhaus (probably quite expensive), Massa Haus, Arge, etc. Here too, I hope to have an initial exchange with you.
As you can see, we are just starting out and would like to bring some orientation to our confusion of thoughts. Thanks in advance for your help.
F
Fummelbrett!15 May 2020 13:00Cary, I think it would be great and very interesting if you share your house-building experience here – despite the likely criticism – as an example that it is possible to succeed through personal effort and hands-on work. Also, it serves as a warning for those who think they can just contribute 100,000 euros worth of labor over a weekend. There is simply a lot of work involved.
If you say that you can make do with minimal money, and that vacations, new cars, etc., are not priorities, then take the step. No one here means any harm, but this forum often attracts dreamers who believe that if they just do the math nicely, everything will work out. Yet, these same people are unwilling to give up their annual flight, hesitate at paving work, and according to their own statements, include a “basic setup” featuring smart home systems, expensive flooring, wood-aluminum windows, dormers, and bay windows.
As you have already been advised here: Visit a local, rather small concrete/masonry builder and see what they have to offer. Get quotes for earthworks and equipment rental. Check what materials you will need and their cost. Estimate the working hours required for building the carport, landscaping, terrace construction, fencing, etc. – allow some extra time – and then see if it can be done with your own people. Be strict about what interior finishing tasks can be done yourself and whether that might conflict with your schedule.
If you say that you can make do with minimal money, and that vacations, new cars, etc., are not priorities, then take the step. No one here means any harm, but this forum often attracts dreamers who believe that if they just do the math nicely, everything will work out. Yet, these same people are unwilling to give up their annual flight, hesitate at paving work, and according to their own statements, include a “basic setup” featuring smart home systems, expensive flooring, wood-aluminum windows, dormers, and bay windows.
As you have already been advised here: Visit a local, rather small concrete/masonry builder and see what they have to offer. Get quotes for earthworks and equipment rental. Check what materials you will need and their cost. Estimate the working hours required for building the carport, landscaping, terrace construction, fencing, etc. – allow some extra time – and then see if it can be done with your own people. Be strict about what interior finishing tasks can be done yourself and whether that might conflict with your schedule.
Finding existing properties in rural areas away from booming regions is difficult. I assume it’s similar in the OP’s case. Land is basically worthless, yet prices are being asked for dilapidated buildings that make you wonder if there’s an oil well or gold vein beneath the house.
Everything that is still reasonably suitable for renovation is sold privately.
In that situation, a new build makes more sense. Buying and demolishing an existing house yourself is not a viable option. I believe the OP mentioned something about 16,000 euros for their plot of land.
Purchase price + demolition costs – land value = a significant loss.
Possibly a shell construction (shell house) could be an alternative. But even then, it depends on the region.
Everything that is still reasonably suitable for renovation is sold privately.
In that situation, a new build makes more sense. Buying and demolishing an existing house yourself is not a viable option. I believe the OP mentioned something about 16,000 euros for their plot of land.
Purchase price + demolition costs – land value = a significant loss.
Possibly a shell construction (shell house) could be an alternative. But even then, it depends on the region.
F
Fummelbrett!15 May 2020 13:16I believe the key to successful house building is truly focusing on the essentials. 120 square meters (about 1,290 square feet) is manageable. Then you build a solid foundation—but without unnecessary extras. Most of those can be added later over the years with some DIY skills, or you can simply choose not to do them. For example, you can add a chimney for a wood stove yourself later, if you have the money and want such a stove. You don’t need a carport right away either. Even the terrace doesn’t have to be perfect when you move in. Instead of a luxury kitchen, the existing one or a second-hand one will do. You can also build a fence in the following years.
What’s important is not stretching your finances to the absolute limit but having a decent financial cushion over time. Especially when it comes to construction work around the house, a few thousand can quickly disappear—building a simple shed? Renting an excavator. Ready-mix concrete. Sand. Cement. Joist hangers. Beams. Boards. Screws. Roofing. Wood stain. Just like that, the account is empty.
What’s important is not stretching your finances to the absolute limit but having a decent financial cushion over time. Especially when it comes to construction work around the house, a few thousand can quickly disappear—building a simple shed? Renting an excavator. Ready-mix concrete. Sand. Cement. Joist hangers. Beams. Boards. Screws. Roofing. Wood stain. Just like that, the account is empty.
@Cary2020 You have a degree and dream of building a new home, but your salary isn’t enough. Wouldn’t it make sense to look for a better-paying job? With 1 to 2 years of work experience after graduating, a $50,000 annual salary should be achievable. That would give you at least €500 (about $540) more net per month, which makes the situation look better. And no, you don’t need €500 (about $540) for commuting. If you value your time more, that’s completely fair, but then you will have to give up building.
What I don’t understand either is, why did you study if you’re not working in a related job? During your studies, you could have already earned good money and saved some.
What I don’t understand either is, why did you study if you’re not working in a related job? During your studies, you could have already earned good money and saved some.
Be sure to include costs for materials needed for self-performed work up to the point when the area is usable, with the rest left for finishing touches.
For example, a carport is not essential. Gravel for the parking space and main entrance is not a luxury. Paving can wait.
However, there must be a budget reserved for "can be done later" items, as well as the stamina for DIY work. In almost every new housing development, there is at least one house where one of these is missing. Nothing gets done, sometimes for years.
In most cases, you can see that homeowners progress gradually, completing the house step by step. Only a few have everything completed at once by a landscaping contractor.
For example, a carport is not essential. Gravel for the parking space and main entrance is not a luxury. Paving can wait.
However, there must be a budget reserved for "can be done later" items, as well as the stamina for DIY work. In almost every new housing development, there is at least one house where one of these is missing. Nothing gets done, sometimes for years.
In most cases, you can see that homeowners progress gradually, completing the house step by step. Only a few have everything completed at once by a landscaping contractor.
F
Fummelbrett!15 May 2020 13:39ivenh0 schrieb:
If your time is more valuable to you, that’s totally fair, but then you’ll have to give up building.At first glance, I find that statement a bit too harsh. They don’t have to give up building—in addition, a longer commute also takes time that might then be missing during the finishing phase. If they don’t have high demands, they could try talking to a structural builder. Considering the affordable land prices, they might be in a "budget-friendly" area where they could end up paying just under 2,000 euros/m² (around $2,100 per square yard). And testing the waters with some rough inquiries costs nothing. Then they can still calculate and reconsider their options.
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