ᐅ House Construction 2016 – Which Steps to Take Next and When?
Created on: 15 Jul 2015 10:19
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NOUSEFORANAME
We plan to start building our own home in 2016.
We already have a building plot of 714m2 (7,676 sq ft).
So far, there is nothing more than a house design I created myself using CAD.
We know a local architect who will prepare the official house plans for us.
My “problem” now is when to approach the architect.
Financing is not secured yet; I plan to finalize it in February 2016, as we will be able to increase our equity by a significant amount that month. I expect this will help us get better terms from the bank.
On the other hand, I have heard that from 2016 there will be stricter regulations for private homes in Rhineland-Palatinate, which could increase costs for some elements. Therefore, I was advised to definitely submit the building permit / planning permission application by the end of 2015.
Now I am wondering what to do next. Should I put everything on hold until I secure financing in February 2016? Or should I already go to the architect now and submit the building permit application afterwards—which would then be financed using my equity?
We already have a building plot of 714m2 (7,676 sq ft).
So far, there is nothing more than a house design I created myself using CAD.
We know a local architect who will prepare the official house plans for us.
My “problem” now is when to approach the architect.
Financing is not secured yet; I plan to finalize it in February 2016, as we will be able to increase our equity by a significant amount that month. I expect this will help us get better terms from the bank.
On the other hand, I have heard that from 2016 there will be stricter regulations for private homes in Rhineland-Palatinate, which could increase costs for some elements. Therefore, I was advised to definitely submit the building permit / planning permission application by the end of 2015.
Now I am wondering what to do next. Should I put everything on hold until I secure financing in February 2016? Or should I already go to the architect now and submit the building permit application afterwards—which would then be financed using my equity?
jaeger schrieb:
Well, besides that, the KfW subsidies are not really profitable with such low interest rates and probably cost more due to the energy consultant fees and so on, even with KfW 55 or even KfW 40.Has someone extensively researched the KfW subsidies, or what is your statement based on?
This is just a rather general statement from me. I only wanted to point out critically that with the currently low interest rates, the subsidies are no longer nearly as attractive as they were a few years ago. I believe everyone would agree on this point.
I admit that my statement is somewhat blunt and too general. Of course, everyone needs to look into this more closely. I haven’t done so myself yet, but I have already heard many similar statements from acquaintances and colleagues who are building. A friend who is an architect also hinted at something similar. Roughly speaking, he said that for the formalities, an additional cost of 3,000–5,000 (3k–5k) is definitely necessary, plus the corresponding amount for better technology and insulation. With that, you can quite easily calculate whether you can recoup this with the cheaper loan and the repayment subsidy.
See also this thread.
I admit that my statement is somewhat blunt and too general. Of course, everyone needs to look into this more closely. I haven’t done so myself yet, but I have already heard many similar statements from acquaintances and colleagues who are building. A friend who is an architect also hinted at something similar. Roughly speaking, he said that for the formalities, an additional cost of 3,000–5,000 (3k–5k) is definitely necessary, plus the corresponding amount for better technology and insulation. With that, you can quite easily calculate whether you can recoup this with the cheaper loan and the repayment subsidy.
See also this thread.
Please don’t take my response as a personal attack, but rather as a critical comment—you did that, thank you.
The topic is unfortunately quite complex, and one should study it carefully and then weigh the options. There are still several unknowns involved and a lot of speculation.
What is certain is that something will change starting April 1. The final details are probably only going to be known in March, which makes planning a bit difficult.
I don’t want to go into too much detail here—there are several threads about this.
But one should not forget that we are talking about large sums of money, and even if the interest rate is 0.5% below the market rate despite the low-interest environment, I would rather put that into repayment, right?
Also, keep in mind that not everyone has ideal conditions (for example, a net monthly income of 10,000 euros and 60% equity :cool, or is skilled at negotiating down to the last fraction of a percent). If one of these factors is missing, the terms can quickly become less favorable.
It’s also worth mentioning other contract points such as an interest-only initial period (2 years, which we personally like), interest-free commitment periods, prepayments allowed at any time... Of course, all of this can be negotiated directly with the bank, but it usually comes with an interest premium.
We dream of the following conditions:
- KfW 55 standard
- 100,000 euros per housing unit
- 20-year fixed interest at 1.2%
- 5% repayment subsidy
The topic is unfortunately quite complex, and one should study it carefully and then weigh the options. There are still several unknowns involved and a lot of speculation.
What is certain is that something will change starting April 1. The final details are probably only going to be known in March, which makes planning a bit difficult.
I don’t want to go into too much detail here—there are several threads about this.
But one should not forget that we are talking about large sums of money, and even if the interest rate is 0.5% below the market rate despite the low-interest environment, I would rather put that into repayment, right?
Also, keep in mind that not everyone has ideal conditions (for example, a net monthly income of 10,000 euros and 60% equity :cool, or is skilled at negotiating down to the last fraction of a percent). If one of these factors is missing, the terms can quickly become less favorable.
It’s also worth mentioning other contract points such as an interest-only initial period (2 years, which we personally like), interest-free commitment periods, prepayments allowed at any time... Of course, all of this can be negotiated directly with the bank, but it usually comes with an interest premium.
We dream of the following conditions:
- KfW 55 standard
- 100,000 euros per housing unit
- 20-year fixed interest at 1.2%
- 5% repayment subsidy
MarcWen schrieb:
Please don’t take my response as a personal attack; it was meant as a critical comment, which you did, thank you. No problem, I didn’t take it that way either.
Yes, the 100k is certainly a good new development and could make the topic more interesting again. My initial response referred to the current situation.
MarcWen schrieb:
Also, you shouldn’t forget that not everyone has ideal conditions (10,000 euros net per month and 60% equity :cool ... Well, I think that only applies to a very small percentage of home builders. At those income levels, people usually buy fully finished houses well above 500k.
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