Hello forum community,
We are a couple with two children aged 3 and 6, planning to buy a house. Lately, we have come across several prefab home offers that seem interesting at first glance.
At the moment, we are weighing the pros and cons of building a prefab home versus buying a "used" house. One key factor is, of course, the overall costs involved. Some offers mentioned additional construction-related costs of around 24,000 to 25,000 euros (approximately 26,000 to 27,000 USD) for prefab homes.
In total (including all costs), we have a maximum budget of 250,000 euros (about 275,000 USD).
Now to my actual questions:
+ What quality level can one generally expect from the standard version of prefab homes? (I would almost compare it to a fitted kitchen, where the final price differs significantly from the initial offer if you want features like different handles.) We understand that prices can increase, but a luxury version is not necessary...
+ Based on experience, what other costs should approximately be expected besides the additional construction-related costs? (For example, flooring, exterior work, etc.)
+ With the stated budget, is building a new house and buying land realistically achievable?
Hopefully, someone in this forum can help us (even if the questions are not very specific at this point...)
Thanks in advance!
Best regards,
Eltih
We are a couple with two children aged 3 and 6, planning to buy a house. Lately, we have come across several prefab home offers that seem interesting at first glance.
At the moment, we are weighing the pros and cons of building a prefab home versus buying a "used" house. One key factor is, of course, the overall costs involved. Some offers mentioned additional construction-related costs of around 24,000 to 25,000 euros (approximately 26,000 to 27,000 USD) for prefab homes.
In total (including all costs), we have a maximum budget of 250,000 euros (about 275,000 USD).
Now to my actual questions:
+ What quality level can one generally expect from the standard version of prefab homes? (I would almost compare it to a fitted kitchen, where the final price differs significantly from the initial offer if you want features like different handles.) We understand that prices can increase, but a luxury version is not necessary...
+ Based on experience, what other costs should approximately be expected besides the additional construction-related costs? (For example, flooring, exterior work, etc.)
+ With the stated budget, is building a new house and buying land realistically achievable?
Hopefully, someone in this forum can help us (even if the questions are not very specific at this point...)
Thanks in advance!
Best regards,
Eltih
B
Bauexperte1 Mar 2012 23:50Hello,
You need to expect additional construction costs of about €35,000 - 40,000 for every building project:
1. Land
5% property transfer tax – varies by municipality
Possibly realtor fees, approx. 3.5% of the land price, varies locally
About 1.5% notary fees, calculated on the land price
3 entries in the land register (1st priority reservation, 2nd ownership transfer, 3rd registration of mortgage)
2. Financing
Possible advisory/closing fees for financing, approx. 1.5% of the total loan amount
Approx. 0.25% commitment interest, based on the loan amount
3. Construction preparation
Approx. €2,800 - €3,200 for surveying services (qualified site plans / elevation survey / staking out / building survey)
Soil report preparation, approx. €1,200
Provision of connections for construction water / temporary electricity, approx. €6 - €8 rent per day for standpipe, approx. €300 rental for construction electricity meter
Fees (for house number, drainage permit, building permit), approx. €1,000 - €1,500, varies by municipality
Fire and builder’s liability insurance approx. €80 - €150 per year, depending on insurer
3. Earthworks
Removal of excess soil (normal soil conditions) for basement, approx. €1,500
Internal utilities (wastewater/stormwater pipes), approx. €2,500 – depending on pipe routing
Access shafts, soakaway or infiltration shaft, approx. €1,900 - €2,200
Contingency fund for additional foundation costs approx. €8,000
4. Utility connection costs
Electricity/gas/water/telecom, connection to sewer system, approx. €8,000 - €8,500 – varies locally
5. Fees
Inspection of drainage system, approx. €150, varies locally
Chimney sweep (inspection of chimney/gas system – note fee applies twice), approx. €200, varies locally
Cadastre office (transfer of surveyor data to property map), approx. €150, varies locally
Total approx.: €35,000 – 40,000
Important: The above list does not include costs for painting, flooring, and outdoor landscaping!
€250,000 minus €40,000 => €210,000 left for house and land
You mentioned NRW as the location – there, in most suburban areas, land plots are available at around €150 per square meter (sqm). Assuming you want to build a semi-detached house (semi-detached), you need at least 300 sqm (approx. 3,230 square feet) of land => which equals €45,000 for the land. Subtracting the above amount leaves €165,000 for house construction including funds for flooring, wallpaper, and landscaping. From experience, I consider this unrealistic; nowadays, you need a budget of around €300,000 for a semi-detached house including land. That's a lot of money, and even then, not all wishes can be fulfilled.
Best regards
eltih schrieb:
Some offers mentioned additional construction costs of around €24,000 - 25,000 for prefabricated houses.
You need to expect additional construction costs of about €35,000 - 40,000 for every building project:
1. Land
5% property transfer tax – varies by municipality
Possibly realtor fees, approx. 3.5% of the land price, varies locally
About 1.5% notary fees, calculated on the land price
3 entries in the land register (1st priority reservation, 2nd ownership transfer, 3rd registration of mortgage)
2. Financing
Possible advisory/closing fees for financing, approx. 1.5% of the total loan amount
Approx. 0.25% commitment interest, based on the loan amount
3. Construction preparation
Approx. €2,800 - €3,200 for surveying services (qualified site plans / elevation survey / staking out / building survey)
Soil report preparation, approx. €1,200
Provision of connections for construction water / temporary electricity, approx. €6 - €8 rent per day for standpipe, approx. €300 rental for construction electricity meter
Fees (for house number, drainage permit, building permit), approx. €1,000 - €1,500, varies by municipality
Fire and builder’s liability insurance approx. €80 - €150 per year, depending on insurer
3. Earthworks
Removal of excess soil (normal soil conditions) for basement, approx. €1,500
Internal utilities (wastewater/stormwater pipes), approx. €2,500 – depending on pipe routing
Access shafts, soakaway or infiltration shaft, approx. €1,900 - €2,200
Contingency fund for additional foundation costs approx. €8,000
4. Utility connection costs
Electricity/gas/water/telecom, connection to sewer system, approx. €8,000 - €8,500 – varies locally
5. Fees
Inspection of drainage system, approx. €150, varies locally
Chimney sweep (inspection of chimney/gas system – note fee applies twice), approx. €200, varies locally
Cadastre office (transfer of surveyor data to property map), approx. €150, varies locally
eltih schrieb:
In total (including all costs) a maximum of €250,000 is available.
€250,000 minus €40,000 => €210,000 left for house and land
eltih schrieb:
Is it realistic to build a new house and purchase land with this budget?
You mentioned NRW as the location – there, in most suburban areas, land plots are available at around €150 per square meter (sqm). Assuming you want to build a semi-detached house (semi-detached), you need at least 300 sqm (approx. 3,230 square feet) of land => which equals €45,000 for the land. Subtracting the above amount leaves €165,000 for house construction including funds for flooring, wallpaper, and landscaping. From experience, I consider this unrealistic; nowadays, you need a budget of around €300,000 for a semi-detached house including land. That's a lot of money, and even then, not all wishes can be fulfilled.
Best regards
Hello Elith,
I can only agree with the previous speaker.
We will start building our house in about 2 weeks, and at the beginning of our planning (4-5 years ago) we also had a budget of 250,000 euros (around 270,000 USD). However, it quickly became clear to us that with this amount, we could not build a new house in our area between Cologne and Bonn.
So at that time, we had no choice but to continue saving.
Additional costs I can mention are:
- Interest during the construction period, which we calculated at 4,000 euros (around 4,300 USD)
- Landscaping budgeted at 11,000 euros (around 11,900 USD)
- Wallpapering/painting/flooring budgeted at 10,000 euros (around 10,800 USD)
From my own experience, I can also say that the builder will come up with things you want to add along the way, which naturally leads to extra costs.
And what is also very important is to have a contingency fund for any unforeseen expenses.
Best regards,
Dirk
I can only agree with the previous speaker.
We will start building our house in about 2 weeks, and at the beginning of our planning (4-5 years ago) we also had a budget of 250,000 euros (around 270,000 USD). However, it quickly became clear to us that with this amount, we could not build a new house in our area between Cologne and Bonn.
So at that time, we had no choice but to continue saving.
Additional costs I can mention are:
- Interest during the construction period, which we calculated at 4,000 euros (around 4,300 USD)
- Landscaping budgeted at 11,000 euros (around 11,900 USD)
- Wallpapering/painting/flooring budgeted at 10,000 euros (around 10,800 USD)
From my own experience, I can also say that the builder will come up with things you want to add along the way, which naturally leads to extra costs.
And what is also very important is to have a contingency fund for any unforeseen expenses.
Best regards,
Dirk
K
k-reineberg2 Mar 2012 09:55Hello Elith,
Wherever you want to build, in the OWL region, fully serviced plots are sometimes available for less than €80.00 (about $86) per square meter; in such cases, you might be in a village (for example, a municipality with 14,000 inhabitants in the Mi-Lk district), but this does not necessarily mean poor infrastructure. What matters most is what you want and prefer.
Your question:
What quality does the standard version of prefab houses usually offer? (I almost want to compare it to a fitted kitchen, where the final price can differ significantly from the initial offer price, for example, if you want different handles.) We understand that prices can go up, but a luxury version is not necessary...
My answer:
It is not possible to make a general statement about the standard versions of different manufacturers. I myself sell prefab houses from a mid-range manufacturer in Lower Saxony. With almost 25 years of construction experience (carpentry + timber construction) and now working for my second employer in the prefab house industry, I know that the service specifications can vary significantly. Some offer houses at an apparently very low price that require substantial upgrades to become good and attractive. Of course, always for a considerable extra cost. Caution is definitely advised here.
Others quote a price that even includes flooring and wallpaper with paint—in other words, truly turnkey—and then offer downgrade packages (self-performance, changes in materials used, modifications to building services, etc.).
What is important is a correct assessment of needs and a complete, individually tailored offer. It is hardly possible to say in advance what price will result, and one possibility among several is that it might not meet your expectations.
In any case, keep in mind that it is not necessarily the total final price of the entire construction project that matters, but much more often the monthly capital costs and their associated risk factors. If an affordable monthly payment with low risk can be arranged for a loan, it is irrelevant whether the house financed this way, fully equipped, cost two or three hundred thousand euros (or dollars).
You should also consider ongoing costs:
Older buildings may cost significantly less to purchase, but most people adapt them to their own needs (renovation costs!) and they often consume considerable energy. Typically, there is a need for renovation even during the loan term (!!).
With a new build, you usually get a house built to current technical standards (watch the details!), which will not require renovations or repairs for a long time and also consumes significantly less energy.
Summary:
Make sure all your wishes and ideas are fully included. Keyword: construction and service specification
Consider follow-up costs. Keyword: renovation, energy, etc.
Involve financial planning early in your considerations. Keyword: monthly payments
Best regards
Malte
Wherever you want to build, in the OWL region, fully serviced plots are sometimes available for less than €80.00 (about $86) per square meter; in such cases, you might be in a village (for example, a municipality with 14,000 inhabitants in the Mi-Lk district), but this does not necessarily mean poor infrastructure. What matters most is what you want and prefer.
Your question:
What quality does the standard version of prefab houses usually offer? (I almost want to compare it to a fitted kitchen, where the final price can differ significantly from the initial offer price, for example, if you want different handles.) We understand that prices can go up, but a luxury version is not necessary...
My answer:
It is not possible to make a general statement about the standard versions of different manufacturers. I myself sell prefab houses from a mid-range manufacturer in Lower Saxony. With almost 25 years of construction experience (carpentry + timber construction) and now working for my second employer in the prefab house industry, I know that the service specifications can vary significantly. Some offer houses at an apparently very low price that require substantial upgrades to become good and attractive. Of course, always for a considerable extra cost. Caution is definitely advised here.
Others quote a price that even includes flooring and wallpaper with paint—in other words, truly turnkey—and then offer downgrade packages (self-performance, changes in materials used, modifications to building services, etc.).
What is important is a correct assessment of needs and a complete, individually tailored offer. It is hardly possible to say in advance what price will result, and one possibility among several is that it might not meet your expectations.
In any case, keep in mind that it is not necessarily the total final price of the entire construction project that matters, but much more often the monthly capital costs and their associated risk factors. If an affordable monthly payment with low risk can be arranged for a loan, it is irrelevant whether the house financed this way, fully equipped, cost two or three hundred thousand euros (or dollars).
You should also consider ongoing costs:
Older buildings may cost significantly less to purchase, but most people adapt them to their own needs (renovation costs!) and they often consume considerable energy. Typically, there is a need for renovation even during the loan term (!!).
With a new build, you usually get a house built to current technical standards (watch the details!), which will not require renovations or repairs for a long time and also consumes significantly less energy.
Summary:
Make sure all your wishes and ideas are fully included. Keyword: construction and service specification
Consider follow-up costs. Keyword: renovation, energy, etc.
Involve financial planning early in your considerations. Keyword: monthly payments
Best regards
Malte
@all
First of all, thank you for the quick and, above all, informative responses. This helps to realistically assess the situation and prevents overly optimistic calculations. If, in the end, it still turns out to be more affordable, that wouldn’t be a problem either.
Regarding the location, we are looking for something in the Lower Rhine region (around Neukirchen-Vluyn, Kempen).
The financial framework is set so that we can maintain our standard of living and a broken washing machine won’t lead us into financial ruin.
As for the specifications, I have to admit that sometimes I can’t see the forest for the trees. I probably need to pay more attention to these details...
By the way, we are viewing a semi-detached house (built in 1999) tomorrow. Maybe that will make the question of building new obsolete, and new questions will arise instead.
@ Dirk
Wishing you the best of luck with your house construction and that everything goes according to your plans and wishes.
Regards,
Eltih
First of all, thank you for the quick and, above all, informative responses. This helps to realistically assess the situation and prevents overly optimistic calculations. If, in the end, it still turns out to be more affordable, that wouldn’t be a problem either.
Regarding the location, we are looking for something in the Lower Rhine region (around Neukirchen-Vluyn, Kempen).
The financial framework is set so that we can maintain our standard of living and a broken washing machine won’t lead us into financial ruin.
As for the specifications, I have to admit that sometimes I can’t see the forest for the trees. I probably need to pay more attention to these details...
By the way, we are viewing a semi-detached house (built in 1999) tomorrow. Maybe that will make the question of building new obsolete, and new questions will arise instead.
@ Dirk
Wishing you the best of luck with your house construction and that everything goes according to your plans and wishes.
Regards,
Eltih
L
Landhaustraum3 Mar 2012 08:39Hello Elith,
We are in a similar situation to you, except that our land prices are really around 80€/m² (approximately $85 per square yard) and we want to build a single-family house.
Ultimately, our goal is to keep the monthly payment to no more than 900€ (around $950).
Until recently, we lived in Munich and were paying that much rent for a "fixer-upper"!
I have definitely heard from acquaintances that it’s possible to pay around 250,000€ (approximately $265,000) for everything and I’m not giving up yet.
But, as mentioned before, I am also interested in the monthly payment, which has to be affordable for us.
We are in a similar situation to you, except that our land prices are really around 80€/m² (approximately $85 per square yard) and we want to build a single-family house.
Ultimately, our goal is to keep the monthly payment to no more than 900€ (around $950).
Until recently, we lived in Munich and were paying that much rent for a "fixer-upper"!
I have definitely heard from acquaintances that it’s possible to pay around 250,000€ (approximately $265,000) for everything and I’m not giving up yet.
But, as mentioned before, I am also interested in the monthly payment, which has to be affordable for us.
Similar topics