ᐅ Building a house is more complicated than expected – prices keep changing constantly!
Created on: 15 Apr 2022 18:05
H
HolzWurm1988
Greetings everyone!
The house construction is actually supposed to start soon. After finding a plot of land here in our rural area, I inquired locally about all the costs related to the land (surveying, water/electricity/telephone connections, notary fees, etc.). I also have the exact notary costs, including the mortgage registration and so on. Some of the costs were significantly higher than I expected, while others were much lower. Overall, the total amount balances out in the end.
Since I basically want to build a log house, I have realized that the contractors are not flexible enough in their scheduling. Of course, I’m glad that all the contractors are busy. However, I also need to ensure that the respective companies can start on my construction site on time. It’s no good if weeks pass between the different phases. Unfortunately, with a log house, I have to manage all the contractors myself. There aren’t many, but they all need to be available at the required time. For this reason, I started looking into prefab houses. Specifically, I’m considering the following models:
Town & Country "Raumwunder 100" and Heinz von Heiden "Bungalow, der Unverbesserliche B760"
When searching online about both companies, you find a mix of positive and negative reviews. I personally believe that most people tend to share negative experiences on the internet, so I don’t include that heavily in my assessment! For both providers, I am increasingly confronted with new prices every few days, which makes me feel like they are trying to pressure me as a customer. So far, I have not signed any purchase contract. However, both houses are viable options for me.
So far, my costs are as follows:
Plot (750 sqm (8,073 sq ft)): 24,500€
Notary fees (including mortgage registration, etc.): 1,945€
Connections/lines/surveying: 6,300€
The Raumwunder 100 costs 210,000€ turnkey, including electric shutters, heat pump but NO underfloor heating.
The Heinz von Heiden bungalow costs 205,000€, including electric shutters, heat pump, and underfloor heating.
Ideally, I would have to commit immediately to Heinz von Heiden. However, my final bank meeting is not until the week after next, and I don’t want to sign any contract before that. I just don’t know if I would still have the option to back out if something goes wrong with the bank. Although, the bank told me in advance that I should have no problem obtaining the credit amount I need. In that case, the price would at least be “safe” for now...
What bothers me most, however, is that the Heinz von Heiden salesperson told me that if I signed the contract this May, I might not be able to build the house until October to December of next year. Building earlier is not possible due to material shortages and the high demand from many people currently wanting to build a house.
As an alternative, I have considered buying an older house again. However, I would have to completely renovate it. Still, I would never reach the current energy standards and would be left with the old water pipes in the house.
What would you do? Do you have any advice for my situation? Are there any alternatives?
I often read that despite a nearly agreed price, sudden price increases occur. Then there’s the fact that materials for continued construction are often missing. This makes me wonder whether it makes sense to take an older house and renovate it step by step, working with the materials currently available.
The house construction is actually supposed to start soon. After finding a plot of land here in our rural area, I inquired locally about all the costs related to the land (surveying, water/electricity/telephone connections, notary fees, etc.). I also have the exact notary costs, including the mortgage registration and so on. Some of the costs were significantly higher than I expected, while others were much lower. Overall, the total amount balances out in the end.
Since I basically want to build a log house, I have realized that the contractors are not flexible enough in their scheduling. Of course, I’m glad that all the contractors are busy. However, I also need to ensure that the respective companies can start on my construction site on time. It’s no good if weeks pass between the different phases. Unfortunately, with a log house, I have to manage all the contractors myself. There aren’t many, but they all need to be available at the required time. For this reason, I started looking into prefab houses. Specifically, I’m considering the following models:
Town & Country "Raumwunder 100" and Heinz von Heiden "Bungalow, der Unverbesserliche B760"
When searching online about both companies, you find a mix of positive and negative reviews. I personally believe that most people tend to share negative experiences on the internet, so I don’t include that heavily in my assessment! For both providers, I am increasingly confronted with new prices every few days, which makes me feel like they are trying to pressure me as a customer. So far, I have not signed any purchase contract. However, both houses are viable options for me.
So far, my costs are as follows:
Plot (750 sqm (8,073 sq ft)): 24,500€
Notary fees (including mortgage registration, etc.): 1,945€
Connections/lines/surveying: 6,300€
The Raumwunder 100 costs 210,000€ turnkey, including electric shutters, heat pump but NO underfloor heating.
The Heinz von Heiden bungalow costs 205,000€, including electric shutters, heat pump, and underfloor heating.
Ideally, I would have to commit immediately to Heinz von Heiden. However, my final bank meeting is not until the week after next, and I don’t want to sign any contract before that. I just don’t know if I would still have the option to back out if something goes wrong with the bank. Although, the bank told me in advance that I should have no problem obtaining the credit amount I need. In that case, the price would at least be “safe” for now...
What bothers me most, however, is that the Heinz von Heiden salesperson told me that if I signed the contract this May, I might not be able to build the house until October to December of next year. Building earlier is not possible due to material shortages and the high demand from many people currently wanting to build a house.
As an alternative, I have considered buying an older house again. However, I would have to completely renovate it. Still, I would never reach the current energy standards and would be left with the old water pipes in the house.
What would you do? Do you have any advice for my situation? Are there any alternatives?
I often read that despite a nearly agreed price, sudden price increases occur. Then there’s the fact that materials for continued construction are often missing. This makes me wonder whether it makes sense to take an older house and renovate it step by step, working with the materials currently available.
H
HolzWurm198817 Apr 2022 20:29Yes, I definitely assume that I can trust the contractor in my specific case. Of course, there may be situations where he asks me for an additional 5000€ (about 5500 USD), or where a heat pump is only available a few weeks later. But even then, it’s possible to plan ahead. If I know I need a heat pump in December, he will surely plan the order accordingly. However, he also won’t be able to give me an exact fixed price that will remain exactly the same down to the cent six months from now.
I’m just a bit surprised that some people here write that they had no problems with their build and the price matched accordingly. And then there are others who “condemn” everything or only had problems. From behind a screen, it’s hard for me to judge which side carries more weight in their assessments. Nevertheless, I am still very grateful for the advice!!
And yes, the advisor from Town & Country as well as from Heinz von Heiden told me/us that we only pay AFTER the house is built. This would be a matter of trust towards the client. Honestly, I find it hard to imagine a construction company offering such significant advance services or financing.
I’m just a bit surprised that some people here write that they had no problems with their build and the price matched accordingly. And then there are others who “condemn” everything or only had problems. From behind a screen, it’s hard for me to judge which side carries more weight in their assessments. Nevertheless, I am still very grateful for the advice!!
And yes, the advisor from Town & Country as well as from Heinz von Heiden told me/us that we only pay AFTER the house is built. This would be a matter of trust towards the client. Honestly, I find it hard to imagine a construction company offering such significant advance services or financing.
H
HolzWurm198817 Apr 2022 20:33ypg schrieb:
Heinz von Heiden is copying Scanhaus Marlow Marlow. A few months ago, I saw a TV commercial where they promoted it.
The problem is: you need to have financing arranged before the construction contract, which means you end up paying significant commitment interest. That is definitely a point I have been thinking about. I go to my main bank and initially need funds to purchase a plot of land. On this disbursed amount, I then pay commitment interest. After that, construction of the foundation slab begins. Here, I receive another partial payment from my total loan. Then, I continue paying interest to the bank until December next year, meaning until I move in according to Heinz von Heiden (because apparently, it currently can’t be done faster).
This is an important aspect to consider when arranging financing.
Where do you want to build? Which district?
Interest on standby loans should also be included in the calculations.
If you build in Lower Saxony (the district is interesting), you might manage with €30,000 (about $32,000) additional construction costs. Land/driveway €20,000 (about $21,000).
Interest on standby loans should also be included in the calculations.
If you build in Lower Saxony (the district is interesting), you might manage with €30,000 (about $32,000) additional construction costs. Land/driveway €20,000 (about $21,000).
In my opinion, the "golden" years for new construction are over.
Until 2019, the conditions were ideal: low interest rates, reasonable costs, craftsmen more readily available, and materials were still accessible.
Of course, homeowners complained back then as well, but looking back, it was on a very high level.
I’m happy for everyone who was fortunate enough to build during that time.
Comparable conditions won’t be seen again for a long time.
Until 2019, the conditions were ideal: low interest rates, reasonable costs, craftsmen more readily available, and materials were still accessible.
Of course, homeowners complained back then as well, but looking back, it was on a very high level.
I’m happy for everyone who was fortunate enough to build during that time.
Comparable conditions won’t be seen again for a long time.
H
HolzWurm198817 Apr 2022 20:50Cuxhaven District (Lower Saxony)
Okay, just to clarify for myself: What exactly do you include in your €30,000 (about $33,000) additional construction costs?
I had a brief conversation today with my brother-in-law, who works in insurance. We talked about the fact that many people around here are currently building new houses, including young families. For a €300,000 (about $330,000) build, the typical repayment rate here is around €1,300 (about $1,430) per month. And when the financing is done nicely through the KfW program, after 10 years you hear complaints about high interest rates, bankruptcies, etc. This will probably happen to many. That’s why I want to keep my budget relatively small. Sure, I can get €320,000 (about $350,000) as a small business owner. But so far, I have NO experience with house construction. I’m glad that it’s easy to find information online. But even if I can get €320,000 (about $350,000), I don’t want to use that much. What if hard times come, or something else? Everything has to remain affordable. We’re living in a real estate bubble, and the crash will happen soon...
Okay, just to clarify for myself: What exactly do you include in your €30,000 (about $33,000) additional construction costs?
I had a brief conversation today with my brother-in-law, who works in insurance. We talked about the fact that many people around here are currently building new houses, including young families. For a €300,000 (about $330,000) build, the typical repayment rate here is around €1,300 (about $1,430) per month. And when the financing is done nicely through the KfW program, after 10 years you hear complaints about high interest rates, bankruptcies, etc. This will probably happen to many. That’s why I want to keep my budget relatively small. Sure, I can get €320,000 (about $350,000) as a small business owner. But so far, I have NO experience with house construction. I’m glad that it’s easy to find information online. But even if I can get €320,000 (about $350,000), I don’t want to use that much. What if hard times come, or something else? Everything has to remain affordable. We’re living in a real estate bubble, and the crash will happen soon...
HolzWurm1988 schrieb:
We are living in a real estate bubble and the crash will happen soon...Then definitely don’t start building now and wait a little longer until the crash occurs.