ᐅ Homebuilding Forum – Would You Choose to Buy or Build a House Again?

Created on: 11 Dec 2015 11:09
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xycrazy
Hello,
we are about to sign the contract with the developer but have started seriously reconsidering whether we should go through with it.
We negotiated for 8 months and were quite sure about it. However, towards the end, some issues arose regarding the contract and other matters, which we managed to resolve.
It now looks like we would be paying a third of our net income to the bank for 22 years. I think we can afford it. But when you are used to paying monthly rent of about €800-900 (divided by 2), this is quite a different level.
With a house, it’s not just the loan payments; there are ongoing maintenance costs as well. From what we’ve read, this is roughly €2-3 per m² (about 0.2-0.3 per sq ft) per month. So that’s another €400-500 per month. And, of course, there is much more work involved too.
Admittedly, this is stressing us out quite a bit, especially my partner. She is worried about the heavy financial burden each month. Is that justified?
We don’t want to live just for the house; we want to go on vacations, avoid problems with children, and so on. As I said, the current situation is manageable, but we wonder if we might be underestimating the costs.
So here’s my question to the community: looking back at everything you know now about loans, maintenance costs, upkeep, and so forth, would you buy or build a house again?
If yes, why? If not, why not? I’m really interested to hear your thoughts! And were there any surprises—positive or negative—that you didn’t expect?

Regards
kaho67419 Oct 2017 09:32
xycrazy schrieb:
It was the combination of accusations, a bitter aftertaste, unexplained additional costs, the statement that certain tasks would be handled by the main contractor (e.g., surveyor, which is actually standard in the construction specifications) but then are shifted onto us anyway, many promises that were never fulfilled, and so on. All of this led to a loss of trust along the way.

It’s quite surprising that when I talk to 14 main contractors, I pick the one where trust is gone right from the start. If I have dealt with the subject for so long, then I know what I’m doing and don’t need trust.
The only trust I need is that the main contractor actually completes the work, but with such extensive information available, you are legally advised and protected well in advance.
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Nordlys
19 Oct 2017 09:38
I see it differently. I need trust. The feeling that I am dealing with an honest person. If I can't find that, then I simply won’t proceed.
kaho67419 Oct 2017 09:41
Nordlys schrieb:
I see it differently. I need trust. The feeling that I'm dealing with an honest person. If I don’t find that, then I simply don’t.

If I don’t find trust after 14 general contractors, I never will. And if I’m fully knowledgeable and have studied the situation thoroughly, theoretically, I could even build with a Russian (no offense to Russians). I know exactly what I’m getting and what I’m paying for, what costs what, and no payment without performance.
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Nordlys
19 Oct 2017 11:11
kaho, that can’t be true. As a builder-client, you are always at a disadvantage. If additional costs suddenly come up and you refuse to pay, the contractor simply stops working. End of story. This is happening right now. The house is paid for except for the last 15,000 (about 16,500) – missing are the air-to-water heat pump and the interior doors; everything else is done. The interior painting was absolutely terrible. There is a dispute. The result: the contractor is ignoring the situation, he simply doesn’t show up anymore. He doesn’t answer his phone and hangs up. He doesn’t care about the last 15,000 (about 16,500). The heating system plus the doors cost more than 15,000 (about 16,500) anyway. The desperate client has to move forward. His old house is sold, and the new owners want to move in. Result: he leaves the painting as it is, buys interior doors himself at a DIY store, and installs them with some help. He orders the heating system directly from the local heating technician. Karsten
F
Farilo
19 Oct 2017 12:03
Bauexperte schrieb:
Hello,


Let me offer you another perspective to consider....

Currently, for each potential client, we typically conduct 5 conversations plus site visits and reference discussions—often involving specialists, for example, geotechnical engineers—until only the option of signing a contract remains. In other words, the clients know absolutely everything they need to make a decision, including a fixed price based on a detailed bill of quantities (BOQ).

In the past, the rule of thumb was to hold 10 negotiations with three appointments each, resulting in one client signing the contract. Over the last two years, the number of meetings increased from three to five or more. This year, up to the third quarter, we dealt with clients who, on closer inspection, should have been politely turned away beforehand. They gathered, absorbed, took, used information and then went to the cheapest competitor equipped with those valuable insights.

Up to the end of Q3, serious client education was mostly not appreciated by potential builders; therefore—since we are surely not the only ones who have had this experience—I can understand very well that many salespeople are frustrated and occasionally express their resentment. We all know that not every conversation leads to a construction contract, that we have to invest a lot of effort upfront, and that the chemistry has to be right too—but what happened this year... sometimes I just find myself at a loss for words.

What I really cannot hear anymore is, “It says so on the internet, it was written there...” In the past, I recommended signing a contract vetted by consumer protection agencies; today, one finds contracts on the internet.

Your turn now:


Thank you very much!

Hi Bauexperte,

Please don’t take this the wrong way, but my experience aligns quite well with xycrazy’s feedback. The salespeople I encountered are simply terrible. Poor conduct, incorrect information, deliberately withholding details, applying pressure—that’s their daily routine. Even if you know little about the subject, you can usually tell when you’re being fed nonsense. (At least I can.)

Your mention of the old rule of thumb is interesting. But, that was in the past! Back then, the cost of a house to the client was only a fraction of what it is today.
If you want a lot, you have to put in a lot of work now. That naturally means handling a higher volume of offers and so on...

The fact that some clients take all the information and then go build with the cheapest provider supports my view:
1) Obviously, the salespeople fail to treat clients in a way that makes them feel completely comfortable and want to stay! (I wonder why that is?)
2) How is it possible that the cheap provider can ultimately build the same way you do? (You mentioned that clients go to the cheapest provider with all the info... A Daihatsu, despite all the information on how it looks and is built like a Maybach, cannot build a Mercedes and offer it cheaply. Quality is clearly inferior in a direct comparison.)

I always find it funny to see... The construction sector is booming! Nobody has time to accept new orders! Everyone is busy and treats clients accordingly.

At the same time, salespeople complain about not closing deals...

It’s all quite strange.

Stromberg says: Those who don’t keep up with the times will be left behind.
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PhiTh
19 Oct 2017 12:22
Winniefred schrieb:
At the moment, it costs us 36% of our total income. But only as long as I’m not working. When I go back to work, we will be at around 22-28%.

What is a typical average or where should one ideally be? For us, it’s 22% before having children and 28% since the first child, including parental leave benefits...

On the topic of trust. We only work with tradespeople we absolutely trust. For example, I wouldn’t even speak to 14 general contractors. We do individual contracting and often only ask one tradesperson per trade. Specifically, tradespeople we know (or those with a very good reputation and references within our friends circle). Trust is essential for me. You spend too little time on site and, as a layperson, have too little knowledge across all trades to want to deal with any kind of poor workmanship or other issues. Certainly, it costs us a bit more… If you have the time, knowledge, and a few gray hairs left, it probably makes sense to choose the cheapest option and then work with them to achieve the desired quality.