ᐅ $250,000 – Implementation of the building plan including all additional costs?
Created on: 15 Sep 2013 00:29
C
Campino
Hello Housebuilding Forum,
I hope I’m not starting this thread too early and that I’ll be taken somewhat seriously, even though I don’t have much experience with housebuilding yet.
My partner and I are planning to move out of a rental soon and get our own home. Until now, the plan was mainly to buy a relatively new house. However, I didn’t want to completely rule out the possibility of building a new one and wanted to at least get some information.
So today we visited a show home and had a very pleasant conversation with an employee of a fairly well-known prefab house manufacturer (I’m not sure if I’m allowed or should post the name here).
We shared what we were looking for in an existing house, which also reflected our basic requirements for a prefab home. I also mentioned to the employee that on property websites like immowelt or my-next-home, new construction projects with land are often offered, since we don’t have a plot ourselves.
The employee took notes on our wishes.
Between 130 and 150 sqm (1,400 and 1,615 sq ft)
Plot between 400 and 600 sqm (4,300 and 6,450 sq ft)
Basement
Underfloor heating
Painter/turnkey delivery
We didn’t express any specific wishes regarding balconies, bay windows, or similar features; it was mainly an initial conversation for information. We don’t want a townhouse but rather a fairly “normal” one-and-a-half-story house with a pitched roof.
Our total budget was stated as 250,000 euros (about $270,000). The employee said that “you can do something with that” regarding what we imagined and that he could provide a non-binding offer.
After reading around a bit here, though: is this even realistic? Can we seriously plan to get a house with a plot in this size range within that budget?
According to the employee, all costs would be covered in this offer, including property taxes, additional construction costs, and site costs.
I would really appreciate your opinions...
Best regards
I hope I’m not starting this thread too early and that I’ll be taken somewhat seriously, even though I don’t have much experience with housebuilding yet.
My partner and I are planning to move out of a rental soon and get our own home. Until now, the plan was mainly to buy a relatively new house. However, I didn’t want to completely rule out the possibility of building a new one and wanted to at least get some information.
So today we visited a show home and had a very pleasant conversation with an employee of a fairly well-known prefab house manufacturer (I’m not sure if I’m allowed or should post the name here).
We shared what we were looking for in an existing house, which also reflected our basic requirements for a prefab home. I also mentioned to the employee that on property websites like immowelt or my-next-home, new construction projects with land are often offered, since we don’t have a plot ourselves.
The employee took notes on our wishes.
Between 130 and 150 sqm (1,400 and 1,615 sq ft)
Plot between 400 and 600 sqm (4,300 and 6,450 sq ft)
Basement
Underfloor heating
Painter/turnkey delivery
We didn’t express any specific wishes regarding balconies, bay windows, or similar features; it was mainly an initial conversation for information. We don’t want a townhouse but rather a fairly “normal” one-and-a-half-story house with a pitched roof.
Our total budget was stated as 250,000 euros (about $270,000). The employee said that “you can do something with that” regarding what we imagined and that he could provide a non-binding offer.
After reading around a bit here, though: is this even realistic? Can we seriously plan to get a house with a plot in this size range within that budget?
According to the employee, all costs would be covered in this offer, including property taxes, additional construction costs, and site costs.
I would really appreciate your opinions...
Best regards
At the latest, I would seriously reconsider this provider. This is active assistance in tax evasion. Unfortunately, the tax authorities often see this very differently than your friendly seller.
Also: €250,000 (about $270,000) for everything? And with a basement? What exactly does your provider plan to do with that? I think it might be a double garage with a basement, and then the price would make sense.
For a house with a slab foundation alone, you should expect around €200,000 (about $215,000). On top of that, add 30,000 to 40,000 euros (about $32,000 to $43,000) in additional construction costs + land + land transaction fees (around 8%) + extra foundation costs + a contingency + interior finishing (walls, floors).
Read through the forum and you’ll see many ask the same question; the answers are always the same.
In the end, you’ll likely be looking at just under or over €300,000 (about $320,000), depending on the cost of the land.
Also: €250,000 (about $270,000) for everything? And with a basement? What exactly does your provider plan to do with that? I think it might be a double garage with a basement, and then the price would make sense.
For a house with a slab foundation alone, you should expect around €200,000 (about $215,000). On top of that, add 30,000 to 40,000 euros (about $32,000 to $43,000) in additional construction costs + land + land transaction fees (around 8%) + extra foundation costs + a contingency + interior finishing (walls, floors).
Read through the forum and you’ll see many ask the same question; the answers are always the same.
In the end, you’ll likely be looking at just under or over €300,000 (about $320,000), depending on the cost of the land.
Der Da schrieb:
At this point, I would seriously keep my distance from that provider. Active assistance in tax evasion.
I assume you are referring to the following passage:
Campino schrieb:
The seller/employee also mentioned this. In that case, I’m not buying the plot together with the house. The company does not offer that. They only have a certain preferential access to specific plots where new builds are planned through this provider. He also offered that if we see a plot and we’re unsure whether it’s for sale, we can tell him its location. He would then find out who owns it and, if applicable, make offers. However, that is a method I personally wouldn’t use.Without having been part of the conversation, I think the house provider meant the following (this was explained to us by several providers upon inquiry):
Many house builders have access to a database with plots designated for development in the area. They can research and, if applicable, find a suitable plot. It’s understandable that the company would have a better overview of available plots than the end consumer.
Based on personal experience and a conversation with a representative of the municipality where I want to build, I believe that when house providers talk about a “certain preferential right,” which I initially interpreted as “we have plots reserved for our customers,” the municipality representative clarified this assumption. In my opinion, this is a typical sales argument that ultimately only amounts to a database query.
We had some very bad experiences with this, so I am very wary of these package deals: Fortunately, we still found our own plot without a restrictive contract.
I wasn’t present at the meeting either. But I want to warn the original poster: Be careful!
Don’t rely on what the seller says... they can say a lot, and in the end, they don’t have to cover your costs.
I wasn’t present at the meeting either. But I want to warn the original poster: Be careful!
Don’t rely on what the seller says... they can say a lot, and in the end, they don’t have to cover your costs.
Thank you for the advice,
I believe it is more like what f-pNo describes. I can’t recall the exact wording from the conversation.
The company I visited is also very well known, but I’m not sure if I’m allowed to mention the name here. Since I have consistently read that it’s probably unrealistic to expect results that match our ideas, I am approaching this offer with zero expectations and will be happy to update you once there is news.
I believe it is more like what f-pNo describes. I can’t recall the exact wording from the conversation.
The company I visited is also very well known, but I’m not sure if I’m allowed to mention the name here. Since I have consistently read that it’s probably unrealistic to expect results that match our ideas, I am approaching this offer with zero expectations and will be happy to update you once there is news.
It is important that the house seller does not receive a commission for the land purchase.
I would also make sure that the construction contract is dated only after the land purchase, and I would definitely get quotes from several building companies.
The questionnaire from the tax office can be somewhat tricky in parts.
I would also make sure that the construction contract is dated only after the land purchase, and I would definitely get quotes from several building companies.
The questionnaire from the tax office can be somewhat tricky in parts.
B
Bauexperte16 Sep 2013 14:07Hello,
This is purely a sales tactic; if you’re not paying close attention, you might believe that the seller actually has access to the municipal property.
Basically, only the municipality decides who is ultimately allowed to purchase the land. No seller has access to these public properties, no matter where in this country.
Best regards, Bauexperte
f-pNo schrieb:
The municipal representative dispelled this assumption. <-- In my opinion, a typical sales argument that ultimately would turn out to be just a database query
This is purely a sales tactic; if you’re not paying close attention, you might believe that the seller actually has access to the municipal property.
Basically, only the municipality decides who is ultimately allowed to purchase the land. No seller has access to these public properties, no matter where in this country.
Best regards, Bauexperte
Similar topics