ᐅ Building a House in Baden-Württemberg – Should You Consult a Building Designer or the Bank First?
Created on: 20 Dec 2017 12:03
T
t.hilo
Hello community,
My family and I (2 adults, 1 child (2 years)) are planning to purchase a plot of land in our hometown in Baden-Württemberg and then build a single-family house on it.
A new residential area was recently developed in our town, and we have applied for one of the building plots there.
We have been thinking for a long time about how we want our home to look and have already done a lot of reading, writing, and research on the subject.
Plot details:
House preferences:
Should we first go to a builder/prefabricated house company/architect to consolidate our ideas and turn them into a feasible project with an estimated cost?
Or should we first speak to a (home) bank in an initial consultation to find out what would generally fit within our financial framework?
How did you approach this? What do you think makes more sense?
My family and I (2 adults, 1 child (2 years)) are planning to purchase a plot of land in our hometown in Baden-Württemberg and then build a single-family house on it.
A new residential area was recently developed in our town, and we have applied for one of the building plots there.
We have been thinking for a long time about how we want our home to look and have already done a lot of reading, writing, and research on the subject.
Plot details:
- Plot size approximately 500 m² (5,400 sq ft)
House preferences:
- Single-family house (detached)
- Living space on the ground floor possible
- Upper floor separable as a separate apartment for later use (either for our child or for renting out)
- Basement
- Double/large garage
Should we first go to a builder/prefabricated house company/architect to consolidate our ideas and turn them into a feasible project with an estimated cost?
Or should we first speak to a (home) bank in an initial consultation to find out what would generally fit within our financial framework?
How did you approach this? What do you think makes more sense?
T
toxicmolotof20 Dec 2017 14:56There are basically two approaches:
1) Set a fixed living area and see how much money is needed, or
2) Set a fixed budget and see how much house you can get for that.
You can be given rough house price estimates here for orientation once you roughly know the size of the house. Adjustments can always be made later.
You can also be given a rough idea of how much financing the bank might provide if you know how much money is available monthly for the house and how much equity you want to put into the property.
Then you can check whether these two numbers can be aligned.
I can help you with the finances:
How much rent do you currently pay?
How much are you saving monthly that could be redirected or stopped during the house build?
How much additional money could you comfortably free up monthly?
How much equity do you have for the house and land (excluding kitchen, furniture, and other reserves)?
What is the expected cost of the land (with or without acquisition costs)?
With this information, the financing side can be roughly covered.
For the cost side, details like:
living area, house type, extras, number of floors, roof style, energy standard, garage, basement, etc., are helpful.
1) Set a fixed living area and see how much money is needed, or
2) Set a fixed budget and see how much house you can get for that.
You can be given rough house price estimates here for orientation once you roughly know the size of the house. Adjustments can always be made later.
You can also be given a rough idea of how much financing the bank might provide if you know how much money is available monthly for the house and how much equity you want to put into the property.
Then you can check whether these two numbers can be aligned.
I can help you with the finances:
How much rent do you currently pay?
How much are you saving monthly that could be redirected or stopped during the house build?
How much additional money could you comfortably free up monthly?
How much equity do you have for the house and land (excluding kitchen, furniture, and other reserves)?
What is the expected cost of the land (with or without acquisition costs)?
With this information, the financing side can be roughly covered.
For the cost side, details like:
living area, house type, extras, number of floors, roof style, energy standard, garage, basement, etc., are helpful.
toxicmolotow schrieb:
I can help you with the finances:Great, thanks! How much is your current basic rent?
Around 550 € flat rate including all additional costs (the basic rent cannot be determined separately in our case)
How much do you save monthly that could be freed up or stopped when building the house?
About 415 € in three home savings contracts
How much additional money could you easily make available per month?
Around 850 € (400 € that we already set aside monthly and have been simulating the “saving situation” for years, the rest through further cutbacks, no car financing, etc.)
How much equity do you have for the house and land (excluding kitchen, furniture, and other reserves)?
Approx. 10,000 € in cash assets
Approx. 60,000 € family support
Approx. 15,000 € saved in the home savings contracts (does this count as equity or how is this treated in financing?)
A kitchen and some new furniture will also need to be paid for.
What should the plot cost (with/without acquisition costs)?
Depending on which plot is allocated to us, the cost will be around 100,000 € - 120,000 € purchase price (excluding acquisition-related costs)
For the cost side, details like these help:
Living area: 150-160 m² (according to owner’s estimate and comparison with existing houses of parents and friends, etc.)
House type: Two-story single-family house with the possibility to convert the upper floor into a separate apartment later (staircase can be separated).
Floors: 2 + basement
Roof type: Gable roof / flat roof
Energy standard: As energy efficient as possible preferred. So far no major restrictions.
Garage: Double garage (planned with entrance into the house)
Basement: Yes (house has basement)
Additional:
- Smart home
- 2-3 children’s rooms (possibly one in the basement with light well)
- Living space for the parents on one level (on the ground floor from the start)
Oh, one more thing: I understand that it is quite possible that our (desired) expectations may not fully align with our financial resources.
My goal is to bring the financial and building planning aspects as close together as possible, so we can then see whether the outcome is acceptable for us or not.
My goal is to bring the financial and building planning aspects as close together as possible, so we can then see whether the outcome is acceptable for us or not.
t.hilo schrieb:
We hope that this year we will finally be informed whether we are assigned a plot or not. Ouch, that sounds a lot like a planned economy. "You will be allocated"
toxicmolotow schrieb:
You can be given rough house prices here for orientation, Keep in mind, these are house prices only. Any expenses for soil replacement or similar surprises vary from plot to plot. So the well-known “plus X.”
t.hilo schrieb:
Oh, and one more thing: I understand that it is quite possible that our (desired) expectations may not necessarily align with our financial means. It’s not uncommon to have several rounds of negotiation until the building wishes and financing find a match.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
T
toxicmolotof20 Dec 2017 16:29So: Money Think Tank
You will still have to pay additional operating costs in the house beyond your current gross rent. Let’s say about 250 euros (275 USD)... leaving 300 euros (330 USD).
To simplify the calculations, let’s ignore the home savings contract. This helps with the math, even though the real situation might look a bit different. You won’t see huge gains or differences either way.
So:
300 + 415 + 850 = 1565 = 18,800 annual payments
At a 5% annual payment rate (however interest and principal are distributed), that comes to about 375k financing.
375 loan
+ 10 cash
+ 60 from family
+ 15 home savings contract
= 460,000 euros
- 10 purchase-related costs
- 10 kitchen
- 10 furniture and so on
- 40 additional building costs
- 120 land
= 270,000 euros
(No buffer included for surprises)
If you want to plan solidly at the upper limit of what’s possible, I’d estimate a target price for the house around 250,000 euros (± 20,000 euros).
That would give you roughly 120 square meters (about 1,290 square feet) at 2,000 euros (2,200 USD) per square meter, since construction costs in BW are unfortunately expensive. This is all without a basement, without a garage; possibly KFW55 standards could apply...
All stated values are rough estimates and could easily vary by about 10%. But now you have an idea of how you can roughly calculate.
You will still have to pay additional operating costs in the house beyond your current gross rent. Let’s say about 250 euros (275 USD)... leaving 300 euros (330 USD).
To simplify the calculations, let’s ignore the home savings contract. This helps with the math, even though the real situation might look a bit different. You won’t see huge gains or differences either way.
So:
300 + 415 + 850 = 1565 = 18,800 annual payments
At a 5% annual payment rate (however interest and principal are distributed), that comes to about 375k financing.
375 loan
+ 10 cash
+ 60 from family
+ 15 home savings contract
= 460,000 euros
- 10 purchase-related costs
- 10 kitchen
- 10 furniture and so on
- 40 additional building costs
- 120 land
= 270,000 euros
(No buffer included for surprises)
If you want to plan solidly at the upper limit of what’s possible, I’d estimate a target price for the house around 250,000 euros (± 20,000 euros).
That would give you roughly 120 square meters (about 1,290 square feet) at 2,000 euros (2,200 USD) per square meter, since construction costs in BW are unfortunately expensive. This is all without a basement, without a garage; possibly KFW55 standards could apply...
All stated values are rough estimates and could easily vary by about 10%. But now you have an idea of how you can roughly calculate.