ᐅ House Construction in Planning – What Would You Prefer?

Hello forum,

I registered here because of many questions and hope for active interest in answering them.

A brief background:
Since our available equity is not very high, we originally planned to build in about 3-4 years to have around 30,000 EUR more in equity. However, since interest rates are currently very low, we decided on a short-term house project.

Just the advantage of better conditions would cost around 35,000 EUR in equity if interest rates rise by 1%.

IF NOT NOW, WHEN THEN!?!?!?

Property conditions:

WR pure residential area
Floor area ratio 0.3
Stories: one full story plus convertible attic I and attic II
Roof pitch: gable roof with 45-50°
Ridge direction facing gable to ****way
The plots are ready to build on immediately and are especially suitable for single-family homes.

1. Is it more cost-effective to have an architect create a design and then tender the work to local contractors individually, or to consider companies like Heinz von Heiden or Baudirekt? Does anyone have experience with Heinz von Heiden?

I believe once this fundamental question is resolved, I can start with my actual list of questions 😀

Is there no one who can answer my question?

Hello arturihno,

before you ask yourself this question, you might want to answer these first:

What total construction cost have you calculated with your bank?
How much does the plot of land cost?
How large will the house be?
Is a basement planned?
How much equity do you have?
What experience do you have with preparing tenders?
Who will supervise the construction if you want to save on the architect?

... and there are several other questions that need to be clarified. Only when all of this is settled and you definitely know that you can build, do the follow-up questions arise, which we will be happy to answer here.

6Richtige schrieb:
Hello arturihno,

before you ask yourself this question, you might want to answer these first:

What total construction cost have you calculated with your bank?
What is the price of the land?
How large will the house be?
Is a basement planned?
How much equity do you have?
What qualifications do you have regarding the tendering process?
Who will supervise the construction if you want to save on the architect?

... and several other questions need to be clarified. Only when all these are settled and you definitely know you can build, the further questions arise, which we will gladly help answer here.

1. Total construction cost around 220,000 EUR
2. 89,000 EUR including commission
3. 120–140 sqm (1,292–1,507 sq ft)
4. No basement!
5. Equity is 30,000 EUR plus external works such as terrace and garage
6. Qualifications as a businessman are available for now
7. I cannot save on the architect :-)

My ideas:

As a banker, I know we currently have a very attractive low interest rate environment. That means with a fixed interest rate for 25 years at an 80% loan-to-value ratio, I would get an interest rate of 4.60% including special repayments.
The rest would be covered through KfW loans and building savings contracts.
--> If the interest rate level were to rise by 1 percentage point, my future saved equity of 35,000 EUR would completely go to the bank.

Therefore, we intend to build the house in the near future rather than waiting the originally planned 3–4 years!!!!

The total construction cost can of course still vary a little...
However, 220,000 EUR including equity and own work would be very appropriate to keep the monthly burden reasonably low.

Own work in this case would include the terrace, garage, and partly the interior finishing such as tiling and other small tasks.

---------------------
In summary, the house should have a base price of about 100,000–110,000 EUR. Own work is initially completely excluded from this...

Therefore, the question:

1. Shell house?
2. Shell construction with own tenders (even though very time-consuming)
3. Companies like Heinz von Heiden

Hello arturihno,

As a businessman, it will probably be difficult for you to create your own tenders and compare offers. Overall, I see hardly any viable options, because with a total of 220,000 €, quite a bit is deducted:

about 95,000 € for the plot and taxes
about 20,000 € additional costs
about 15,000 € for the foundation slab and earthworks
about 40,000 € for quality materials for the interior finishing

That leaves 50,000 € for the shell construction. According to your calculation, you would already have 50,000 to 60,000 € in additional financing needed without even having started. So if your budget doesn’t go up to around 280,000 €, I would recommend staying away from building.

In my opinion, the construction budget won’t get you very far... and I’m not sure if a good architect will even agree to take on the project (since it’s a small, limited scope). You’ll probably have better luck with firms like Heyden and others.