ᐅ House Construction: Prefabricated House or Solid (Masonry) House? Experiences and Price Range
Created on: 10 Jun 2022 16:50
O
ollininjo
Hello everyone,
We have been looking into the topic of building a house for several months now. Unfortunately, we are quite new to this field and are not familiar with all the details. Of course, we have read a lot and searched online, but you often come across different information, especially older and not so up-to-date sources.
We have a plot of land in the city that we are considering. It is about 830 m2 (0.2 acres) including partial utility connections. The cost of the plot is 130,000 euros, and of course, you need to add property transfer tax, notary fees, and land registry costs (anything else we might be forgetting?). Since the plot only has partial utility connections, all the connections are apparently in front of the street because the land was subdivided. So, naturally, there will be additional development costs; we estimate around 10,000 euros. Overall, we would be looking at about 150,000 euros for the land, which is fine so far.
Now comes the house. We are leaning more towards a prefab house since a custom architect-designed home requires a lot of work, right? I have, of course, checked out several providers, and the prices are always quite attractive. We are assuming a 150 m2 (1,615 square feet) prefab house, which shows a price of 380,000 euros including all the services the provider offers. This is assuming a turnkey package. What other costs should we expect? I assume garage and landscaping are obvious extras, but are there other expenses we should factor in? Perhaps someone here has experience with this kind of build and could help us.
We would like to have a rough estimate to see if many additional costs might come up since, otherwise, the total would exceed 600,000 euros for a 150 m2 prefab house, which seems a bit unclear to me.
Thanks in advance to everyone!
We have been looking into the topic of building a house for several months now. Unfortunately, we are quite new to this field and are not familiar with all the details. Of course, we have read a lot and searched online, but you often come across different information, especially older and not so up-to-date sources.
We have a plot of land in the city that we are considering. It is about 830 m2 (0.2 acres) including partial utility connections. The cost of the plot is 130,000 euros, and of course, you need to add property transfer tax, notary fees, and land registry costs (anything else we might be forgetting?). Since the plot only has partial utility connections, all the connections are apparently in front of the street because the land was subdivided. So, naturally, there will be additional development costs; we estimate around 10,000 euros. Overall, we would be looking at about 150,000 euros for the land, which is fine so far.
Now comes the house. We are leaning more towards a prefab house since a custom architect-designed home requires a lot of work, right? I have, of course, checked out several providers, and the prices are always quite attractive. We are assuming a 150 m2 (1,615 square feet) prefab house, which shows a price of 380,000 euros including all the services the provider offers. This is assuming a turnkey package. What other costs should we expect? I assume garage and landscaping are obvious extras, but are there other expenses we should factor in? Perhaps someone here has experience with this kind of build and could help us.
We would like to have a rough estimate to see if many additional costs might come up since, otherwise, the total would exceed 600,000 euros for a 150 m2 prefab house, which seems a bit unclear to me.
Thanks in advance to everyone!
ollininjo schrieb:
Plot of land around 150,000 euros, ollininjo schrieb:
Let’s assume a 150 m2 (1,615 sq ft) prefabricated house, for which I am shown a price of 380,000 euros including all the services offered by the supplier. Ok;
150,000 euros for the land
380,000 euros for the house (prefabricated house)
30,000 euros for the foundation slab
20,000 euros for upgrades
40,000 euros for additional building costs (usually between 25,000 and 60,000 euros depending on the plot)
20,000 euros for the main exterior landscaping
10,000 euros for carport with storage room (including electrical installation)
20,000 euros for painting and floor coverings (including electrical installation)
Total:
670,000 euros
(And before one of my usual critics complains again, yes, it can be done cheaper... but for a realistic budget estimate you plan conservatively. And these are the figures the user wants to know.)
ollininjo schrieb:
I still have some payments left but it’s less than 50k... I’d just rent it out and finance the house that way... It’s not that simple: with 4,500 euros net income and no equity, you won’t get financing for 700,000 euros.
Also, rental income can stop unexpectedly.
ollininjo schrieb:
net 4,500 euros Oops, I forgot the kitchen 😎
O
ollininjo11 Jun 2022 22:23Yes, I know, it’s really not feasible.
There is no building obligation on the plot. As I mentioned, we have an appointment with the real estate agent and the owner. But I think the whole thing can safely be dismissed.
As I said, I still have an outstanding loan of about 50,000 euros on my condominium, of course I could sell it (current value 320,000 euros). Then I would need to take out a loan of 330,000 euros or more, but I still have to live here and can’t sell right away until it’s time to move.
It’s all a mess, but thank you all anyway!
There is no building obligation on the plot. As I mentioned, we have an appointment with the real estate agent and the owner. But I think the whole thing can safely be dismissed.
As I said, I still have an outstanding loan of about 50,000 euros on my condominium, of course I could sell it (current value 320,000 euros). Then I would need to take out a loan of 330,000 euros or more, but I still have to live here and can’t sell right away until it’s time to move.
It’s all a mess, but thank you all anyway!
ollininjo schrieb:
Of course, you could sell it (current value 320,000 Euros). Then you would need to take out a loan of 330,000 Euros or more, but I still have to live here and can’t sell immediately until I plan to move.The residual value is described differently further up. With equity of 270,000 Euros, things already look quite smooth. You could easily get a loan and still have enough left for living expenses. I’m just assuming a middle age where the salary may increase somewhat in the coming years. And what about planning for children?
Get information about the land, make an offer, and start planning 🙂
O
ollininjo11 Jun 2022 22:3930 years... no children planned for now... my head is already exploding, it’s just hard to imagine whether this is achievable. I would also prefer not to sell the apartment, rather rent it out, but in that case, you probably wouldn’t get that amount from the bank to build a house.
W
WilderSueden11 Jun 2022 22:44ollininjo schrieb:
As I said, I still have an outstanding loan balance of about 50,000 euros on my condominium. Of course, I could sell it (current value 320,000 euros). Then I would need to borrow 330,000 euros or more, but I still need to live here and can’t just sell right away until I’m ready to move. Many people sell their apartment beforehand and secure a right to stay, for example for 1 year. This issue is relatively easy to solve, and in that case, your equity position would actually not be that bad.
The other question is whether you really need 150 square meters or if 130 square meters would also be sufficient. That would give you some savings potential.
ollininjo schrieb:
30 years… no kids planned for now… my head is already spinning; it’s hard to imagine whether it’s doable. I wouldn’t want to sell the apartment anyway, would rather rent it out, but then you probably wouldn’t get that loan amount from the bank to build a house. Renting is not a good business right now. Even if the apartment were debt-free and could be used as collateral for the new property, you simply can’t achieve the rental income you need on the market, not even if no rent control regulations got in the way.
ollininjo schrieb:
I would rather not sell the apartment, better to rent it outThat’s what everyone says at the beginning. Besides the fact that without equity you probably won’t get a single cent, you’re definitely not wealthy enough to own two properties. You have to look at it objectively.
Then find a solid disability insurance close by that will also approve you for incapacity benefits 😉