ᐅ Decision-Making Support for My New Home Construction Project
Created on: 27 Jul 2016 14:02
R
rolf.benz
Hello everyone,
I’ve actually found a great forum and really hope to get some unbiased, yet highly experienced advice here.
Please don’t be too harsh on me.
I’m currently facing the decision of fulfilling my dream of owning a home in the Rhine-Main area.
There are several options to choose from, which are:
It should be noted that option 1) includes underfloor heating, electric roller shutters, external power outlets, and some other features such as tiles in the kitchen, hallway, and bathrooms, as well as a small terrace.
Painting work and other flooring options are the responsibility of the buyer, although these could be ordered for an additional charge.
I’ll spare you the building service description for now, as I first want to gather some opinions.
Regarding the layout of the rooms, I’m quite relaxed. The only preference I have is about the roof style: I personally like a single-sloped or flat roof.
However, this is not a “must-have” and of course depends on the local building regulations / planning permission, which I would still need to clarify for options 3) and 4).
My only downside with option 1) is the extras regarding multimedia cabling and networking as I want it, preferring concealed installation inside the walls.
Unfortunately, I can only start work on that after the property has been accepted. Only then am I allowed to chase channels, install cables, and plaster again.
Otherwise, most of my needs and wishes could be met, unless I come up with more.
How would you decide?
The mid-terrace house (option 1) would be built to an energy standard similar to KfW 75 without a basement and should be completed by the end of this year or early next year.
If I build myself (or have it built), I would probably move in a bit later since the plots are still in the development phase.
Since I’m not under much time pressure, this shouldn’t be a problem. My goal is still to have everything done by next year.
For options 3) and 4) I have been pre-registered and according to the land developer last week, I’m quite high on the list to be able to choose one of the plots.
That should happen in about six to eight weeks.
I admit I haven’t looked into building through a general contractor or construction management company yet, as I’m not sure which option I should prefer.
Of course, it would be nice to save a few euros, which I could then invest in additional projects or upgrades.
If building yourself (or having it built), would you prefer masonry “brick by brick” or prefabricated timber frame construction?
I know I will have many more questions later.
But first things first, and the most important question right now: which option?
Thanks in advance and best regards,
Rolf
I’ve actually found a great forum and really hope to get some unbiased, yet highly experienced advice here.
Please don’t be too harsh on me.
I’m currently facing the decision of fulfilling my dream of owning a home in the Rhine-Main area.
There are several options to choose from, which are:
- A mid-terrace house with about 135sqm (1450 sq ft) of living space, no basement, from a developer, with a pitched roof (approx. 170sqm (1829 sq ft) plot, costing around 350,000 euros plus all additional costs)
- Mid-terrace house with pitched roof to build myself (or have built) (similar plot size, land costs about 120,000 euros only)
- Detached single-family house (approx. 230sqm (2476 sq ft) plot, land costs about 110,000 euros only plus all costs)
- Semi-detached house (approx. 500sqm (5382 sq ft) plot which costs around 230,000 euros plus all other costs, land only; one half to be sold or possibly rented after completion)
It should be noted that option 1) includes underfloor heating, electric roller shutters, external power outlets, and some other features such as tiles in the kitchen, hallway, and bathrooms, as well as a small terrace.
Painting work and other flooring options are the responsibility of the buyer, although these could be ordered for an additional charge.
I’ll spare you the building service description for now, as I first want to gather some opinions.
Regarding the layout of the rooms, I’m quite relaxed. The only preference I have is about the roof style: I personally like a single-sloped or flat roof.
However, this is not a “must-have” and of course depends on the local building regulations / planning permission, which I would still need to clarify for options 3) and 4).
My only downside with option 1) is the extras regarding multimedia cabling and networking as I want it, preferring concealed installation inside the walls.
Unfortunately, I can only start work on that after the property has been accepted. Only then am I allowed to chase channels, install cables, and plaster again.
Otherwise, most of my needs and wishes could be met, unless I come up with more.
How would you decide?
The mid-terrace house (option 1) would be built to an energy standard similar to KfW 75 without a basement and should be completed by the end of this year or early next year.
If I build myself (or have it built), I would probably move in a bit later since the plots are still in the development phase.
Since I’m not under much time pressure, this shouldn’t be a problem. My goal is still to have everything done by next year.
For options 3) and 4) I have been pre-registered and according to the land developer last week, I’m quite high on the list to be able to choose one of the plots.
That should happen in about six to eight weeks.
I admit I haven’t looked into building through a general contractor or construction management company yet, as I’m not sure which option I should prefer.
Of course, it would be nice to save a few euros, which I could then invest in additional projects or upgrades.
If building yourself (or having it built), would you prefer masonry “brick by brick” or prefabricated timber frame construction?
I know I will have many more questions later.
But first things first, and the most important question right now: which option?
Thanks in advance and best regards,
Rolf
R
rolf.benz27 Jul 2016 15:29jtm80 schrieb:
We are currently having a mid-terrace house built through a developer in Gelsenkirchen (you can find the description here in the forum under the search term "Vista Reihenhaus"). Our concept is similar to your option 1.), so I can share some insights about it. Maybe you could just read my post there.
Personally, I like option 1.), but of course that's a matter of personal preference. I'm not the type who needs to walk all around my house, and also, at least here in the Ruhr area, it is significantly cheaper than detached houses, which we simply couldn't afford (or didn't want to).Thanks, I will take a look at that and read through it this evening.
nordanney schrieb:
What about your financial situation? Perhaps a detached single-family house is already ruled out?150,000 euros (approximately 165,000 US dollars) in equity available. So I could contribute the land.
Budget is 400,000 euros (approximately 440,000 US dollars), but preferably less.
nordanney schrieb:
P.S. Option 4 has a tax-related aspect that also needs to be considered!Thanks, I admit I am completely unaware of that.
How should I understand this???
N
nordanney27 Jul 2016 15:461. With your budget, you will only get a small house, but not a “real” detached single-family home – so that option can be ruled out.
2. If you build a duplex and then sell one half, you need to a) find a bank willing to finance the project in the first place, and b) since you want to sell it at a profit, you will also have to pay taxes on the profit (building a house yourself often ends up costing more than planned, usually).
If you decide to rent it out, the rental agreement must cover the loan repayments. However, you will be responsible for maintaining the house – for example, you must pay for a new heating system, etc. Rental income from a house is generally negligible due to low profitability (any surplus income must also be taxed).
Your special requests for network cabling should also be possible to implement by the electrician during the construction phase – unless you prefer to do it yourself.
2. If you build a duplex and then sell one half, you need to a) find a bank willing to finance the project in the first place, and b) since you want to sell it at a profit, you will also have to pay taxes on the profit (building a house yourself often ends up costing more than planned, usually).
If you decide to rent it out, the rental agreement must cover the loan repayments. However, you will be responsible for maintaining the house – for example, you must pay for a new heating system, etc. Rental income from a house is generally negligible due to low profitability (any surplus income must also be taxed).
Your special requests for network cabling should also be possible to implement by the electrician during the construction phase – unless you prefer to do it yourself.
R
rolf.benz27 Jul 2016 16:17nordanney schrieb:
1. With your budget, you can only afford a small house, not a "real" detached single-family home – so this option can be crossed off.
2. If you build a semi-detached house and then sell one half, you need to a) find a bank willing to finance the project and b) because you want to sell for a profit, you will have to pay taxes on the gain (building a house yourself often ends up more expensive than planned, usually?).
If you rent it out, the rental income must cover the loan payments. However, you will be responsible for maintenance – for example, the new heating system will have to be paid by you. The return from a house is generally negligible, as there is hardly any profit (any surplus must also be taxed).
Your special requests for network cabling should still be possible for the electrician to implement during the construction phase – unless you want to do it yourself.I shouldn’t have major issues with financing from the bank, at least that’s what my financial advisor told me. We discussed this, and of course they would have to review it thoroughly, but it should work “subject to conditions”?!?!?!
I don’t really aim for large profits anyway, but it wouldn’t be a bad thing.
Of course, rental income would have to be taxed, and I would also have to deal with losses in case of vacancies.
So I will drop the idea of renting it out.
The developer, and their workers and subcontractors, do not allow any personal work during the construction phase.
Unfortunately, the network and multimedia cabling cannot be customized to my needs.
The developer does offer network wiring, but only the bare minimum – just a few network sockets and a switch in the utility room. I could probably live with that, but the topic of multimedia cabling embedded in the walls remains unresolved.
What exactly do you want to build for? Just for yourself, a family, for now (and to sell in case of a job change or retirement), or also for retirement?
These considerations can definitely influence how much space you need on the ground floor right now. 140 sqm (1507 sq ft) spread over three floors is quite different from 140 sqm (1507 sq ft) on two floors.
If setting up the network later requires a lot of work, you will probably end up paying some things (especially plastering) twice. On top of that, there’s the hassle of having to start work again in an otherwise finished house and possibly continuing to rent elsewhere during that time. To me, that speaks against this option.
These considerations can definitely influence how much space you need on the ground floor right now. 140 sqm (1507 sq ft) spread over three floors is quite different from 140 sqm (1507 sq ft) on two floors.
If setting up the network later requires a lot of work, you will probably end up paying some things (especially plastering) twice. On top of that, there’s the hassle of having to start work again in an otherwise finished house and possibly continuing to rent elsewhere during that time. To me, that speaks against this option.
R
rolf.benz27 Jul 2016 19:17The home is intended/will initially be just for me alone (single). What the future holds remains to be seen; at 42, I’m still young enough 😎.
I’m not interested in selling it again anytime soon. However, the day might come when I can no longer use all three floors to this extent. Hopefully, there will still be plenty of time before that happens. At that point, I would likely move back into an apartment.
A terraced house or mid-terrace house generally suits me perfectly. Most homes of this type nowadays consist of a kitchen, hallway, guest WC, living room, and possibly a utility or technical room if it’s not located elsewhere.
On the upper floor, I envision a large bedroom, if possible with a walk-in closet, a small room as an office and hobby space, and a third room for children??? plus a nice bathroom.
For the semi-detached house option, everything could take place on two floors. The zoning plan allows this. However, working with three floors there would also be possible.
This issue of having to “touch up” the freshly built and plastered walls again really bothers me a lot with this builder. And whether I can actually access the site during the construction phase before plastering, I don’t know. The builder certainly does not allow it, and their workers, such as subcontractors, seem to be very strict about this and would report it immediately?!?!?!
I’m not interested in selling it again anytime soon. However, the day might come when I can no longer use all three floors to this extent. Hopefully, there will still be plenty of time before that happens. At that point, I would likely move back into an apartment.
A terraced house or mid-terrace house generally suits me perfectly. Most homes of this type nowadays consist of a kitchen, hallway, guest WC, living room, and possibly a utility or technical room if it’s not located elsewhere.
On the upper floor, I envision a large bedroom, if possible with a walk-in closet, a small room as an office and hobby space, and a third room for children??? plus a nice bathroom.
For the semi-detached house option, everything could take place on two floors. The zoning plan allows this. However, working with three floors there would also be possible.
This issue of having to “touch up” the freshly built and plastered walls again really bothers me a lot with this builder. And whether I can actually access the site during the construction phase before plastering, I don’t know. The builder certainly does not allow it, and their workers, such as subcontractors, seem to be very strict about this and would report it immediately?!?!?!
N
nordanney28 Jul 2016 09:08rolf.benz schrieb:
People like subs are unfortunately usually very strict about this and would report it immediately?!?!?! With a small one, every door has still opened, and with a bundle, any sub will do exactly what you want – including multimedia wiring 😉
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