ᐅ A good start is always challenging... Initial considerations and planning
Created on: 12 Oct 2012 13:28
M
Mampfberg
Hello everyone,
The beginning is always difficult.
Since I don’t have a guide, I’m turning to you.
I want to build a prefab house on part of my mother’s property. She would gift me the part of the land I need for this.
According to the building authority, I am allowed to build a 15 x 18 m (49 x 59 ft) house with 1.5 floors.
They couldn’t give me more information because I didn’t have any documents yet.
I’m thinking of a living area of about 100–120 sqm (1,076–1,292 sq ft) and a basement. I don’t need a large garden or luxury. Since it’s just the two of us and our expectations are modest, this should be enough for us.
Budget is a good question. I’ve done some calculations, and overall it should not exceed 150,000.
Is that realistic?
What are your experiences?
The beginning is always difficult.
Since I don’t have a guide, I’m turning to you.
I want to build a prefab house on part of my mother’s property. She would gift me the part of the land I need for this.
According to the building authority, I am allowed to build a 15 x 18 m (49 x 59 ft) house with 1.5 floors.
They couldn’t give me more information because I didn’t have any documents yet.
I’m thinking of a living area of about 100–120 sqm (1,076–1,292 sq ft) and a basement. I don’t need a large garden or luxury. Since it’s just the two of us and our expectations are modest, this should be enough for us.
Budget is a good question. I’ve done some calculations, and overall it should not exceed 150,000.
Is that realistic?
What are your experiences?
M
Mampfberg12 Oct 2012 15:15Prefabricated house manufacturers rarely include prices in their catalogs.
I don’t plan to start building for at least 5 years or later. Until then, I’m saving money. So I want to gather information first about what to expect.
Do I need an architect for a prefabricated house as well?
What materials or documents do I need to provide to the building authority to find out what costs the city will charge me?
Maybe renting is actually cheaper?
I just thought since I already have the land available, it would be a waste not to use it.
I don’t plan to start building for at least 5 years or later. Until then, I’m saving money. So I want to gather information first about what to expect.
Do I need an architect for a prefabricated house as well?
What materials or documents do I need to provide to the building authority to find out what costs the city will charge me?
Maybe renting is actually cheaper?
I just thought since I already have the land available, it would be a waste not to use it.
Saving money is a tricky issue. I see it the same way as my financial advisor: if you start saving today with the current low interest rates, the amount you save will LIKELY be eaten up by higher interest rates and increased construction costs. When I tell relatives what our house costs, they are almost shocked. 400,000 euros with everything included. Fifteen years ago, my aunt could have built a huge villa with a basement for around 800,000 Deutsche Marks.
Of course, purchasing power was different, and she didn’t earn what I earn today. But it is certain that building has become significantly more expensive.
Anyone dealing with building also has to think about retirement planning. Owning a house alone often isn’t enough. What’s the point of struggling to pay off a house by retirement, only to have to sell it because you don’t receive a pension?
You also need an architect for a prefabricated house, although this is usually provided by the supplier. The fees charged by the local authority are your smallest concern. You’ll need to submit a building permit / planning permission application, which costs somewhere between 200 and 2,000 euros. You’ll also need various connections like electricity, gas, and water. You can usually find the prices on the utility providers’ websites. However, be careful with flat rates—if your house is too far from the street, the costs can become unpleasantly expensive. Usually four digits.
It can definitely be cheaper to rent, especially if capital is not very liquid. Depending on the region, you can rent a three-room apartment for less than 600 euros including utilities. You can never build a house for that amount. Better to invest that money in your retirement savings. No matter what you do, a house will likely cost you at least 1,000 and possibly even 1,400 euros per month. What many forget is that a house also incurs costs beyond just the mortgage. You can budget around 300 euros per month for insurance, heating, water, taxes, etc.
And eventually, the roof will need repair, a new heating system must be installed, the facade repainted, or the municipality decides to redo the street. You will always be asked to pay.
Of course, purchasing power was different, and she didn’t earn what I earn today. But it is certain that building has become significantly more expensive.
Anyone dealing with building also has to think about retirement planning. Owning a house alone often isn’t enough. What’s the point of struggling to pay off a house by retirement, only to have to sell it because you don’t receive a pension?
You also need an architect for a prefabricated house, although this is usually provided by the supplier. The fees charged by the local authority are your smallest concern. You’ll need to submit a building permit / planning permission application, which costs somewhere between 200 and 2,000 euros. You’ll also need various connections like electricity, gas, and water. You can usually find the prices on the utility providers’ websites. However, be careful with flat rates—if your house is too far from the street, the costs can become unpleasantly expensive. Usually four digits.
It can definitely be cheaper to rent, especially if capital is not very liquid. Depending on the region, you can rent a three-room apartment for less than 600 euros including utilities. You can never build a house for that amount. Better to invest that money in your retirement savings. No matter what you do, a house will likely cost you at least 1,000 and possibly even 1,400 euros per month. What many forget is that a house also incurs costs beyond just the mortgage. You can budget around 300 euros per month for insurance, heating, water, taxes, etc.
And eventually, the roof will need repair, a new heating system must be installed, the facade repainted, or the municipality decides to redo the street. You will always be asked to pay.
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