ᐅ Planning to build a house: what budget should you expect nowadays?
Created on: 1 Jan 2023 16:22
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rulor1992
Hello everyone,
I would like to get a rough estimate in advance of what we might expect for a future house.
In our former rural hometown, building plots will soon be developed. Due to the current situation, almost all previously reserved plots have become available again.
We have an appointment soon to discuss the building plots. They are all between 500-650 sqm (5382-6997 sq ft) in size and are supposed to cost between €160-180 (per sqm), which is quite high for this location.
Is it still possible to negotiate prices, or are the local authorities strict? We are considering buying two plots to reach about 1000 sqm (10,764 sq ft) in total.
The plot would be purchased without taking out a loan.
What are the current prices for a single-family house with two full floors and a basement in a higher-quality finish?
Since I am currently self-employed, my income fluctuates significantly. The business is planned to be moved into the basement. Of course, this still needs to be approved by the local authority to see if it is allowed.
It is an online shop with current pre-tax profits of €400,000 annually.
Maybe you can give me a brief outlook on the upcoming project.
Thank you
I would like to get a rough estimate in advance of what we might expect for a future house.
In our former rural hometown, building plots will soon be developed. Due to the current situation, almost all previously reserved plots have become available again.
We have an appointment soon to discuss the building plots. They are all between 500-650 sqm (5382-6997 sq ft) in size and are supposed to cost between €160-180 (per sqm), which is quite high for this location.
Is it still possible to negotiate prices, or are the local authorities strict? We are considering buying two plots to reach about 1000 sqm (10,764 sq ft) in total.
The plot would be purchased without taking out a loan.
What are the current prices for a single-family house with two full floors and a basement in a higher-quality finish?
Since I am currently self-employed, my income fluctuates significantly. The business is planned to be moved into the basement. Of course, this still needs to be approved by the local authority to see if it is allowed.
It is an online shop with current pre-tax profits of €400,000 annually.
Maybe you can give me a brief outlook on the upcoming project.
Thank you
I would generally assume that any business activities beyond typical home office work are not likely to be approved in new, purely residential areas. Anything else would surprise me. If you are currently handling the logistics yourself, does that even make financial sense, especially if you involve your family? You probably wouldn’t make many friends in the neighborhood that way. The zoning plan usually covers everything related to this (you might need to read the text several times for better understanding :-). Small children’s play streets and lots of speeding delivery drivers simply do not go well together. (P.S. I was able, with a lot of effort and goodwill from the approving authorities, to convert a purely residential building into a commercial property 26 years ago.)
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rulor19921 Jan 2023 17:54i_b_n_a_n schrieb:
I tend to assume that commercial activities beyond typical home office work are not likely to be approved in new, strictly residential areas. Anything else would surprise me a lot. If you are currently handling the logistics yourself (does that even make financial sense considering involving your family?), you probably won’t make friends in the neighborhood. The local zoning plan usually covers all of this (you might need to read the text several times for better understanding - 🙂. Small children's play streets and large numbers of fast delivery drivers simply don’t go well together. (P.S. 26 years ago, with a lot of effort on my part and goodwill from the approving authorities, I was able to convert a purely residential house into commercial use) You have to consider that an additional delivery van arrives daily to pick up packages.
Plus, 2-3 times a month a truck delivers goods.
And there are also the usual parcel service providers.
Since I have no experience with how the local municipality handles this, it’s hard to judge.
In any case, it wouldn’t really be an additional noise burden.
rulor1992 schrieb:
I actually assumed that the municipality would be happy to sell off the plots.Despite the current waves of cancellations, building plots remain limited, not least due to increasingly complex procedures for land zoning and planning approvals. Municipalities still cannot afford to give away land reserves and always operate under significant economic pressure as land developers—like under the sword of Damocles. Their goal is to develop areas quickly. Currently, this means dividing many areas into two construction phases in order to manage the infrastructure development accordingly. I wouldn’t want to trade places with any mayor at the moment. rulor1992 schrieb:
No staff will be hired. Everything will be done by family members.Workplace regulations also apply when family members are involved. rulor1992 schrieb:
I can well imagine 200 sqm with a basement.
600,000 Euros would still be thinkable without the plot, maybe even 800,000 Euros.200 sqm (including basement) is not small. I would be cautious about fully using a budget of that size. Assuming "1992" is your birth year, and if I remember correctly from another thread you have a partner but no children yet, I would keep an eye on the property ladder. Myrna_Loy schrieb:
I overheard an interview today with a board member of the Architects Chamber. He said that what was considered a normal standard in rural areas costing 2,500 Euros per sqm until 2021 is now at 3,000 Euros per sqm. For 2023, increases of up to 20% are expected, depending on collective agreements, inflation development, etc. For higher-end standards, I would currently anticipate around 3,500 Euros per sqm, especially in Bavaria.I could imagine that such a chamber board member might belong to the group of architects that @Gerddieter warns about, just to be safe. At the moment, I expect only very moderate increases in construction costs and honestly fear that I may have to partially shift my professional time from being a construction consultant to volunteer work as a debt counselor (more for craftsmen and small general contractors than for homeowners). rulor1992 schrieb:
Since I have no experience with how the municipality acts here, it’s hard to assess.As far as I “know” you so far, it seems advisable to outsource logistics from the private sphere. Phone/fax/PC can still of course be located in the house. i_b_n_a_n schrieb:
Is the text of the development plan available online?I was just about to say: PLEASE NO LINK!!!!! ...https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
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rulor19921 Jan 2023 18:12At first glance, it doesn’t look too bad...
4.1 Type of Land Use Within the planning area, a general residential zone is designated according to § 4 of the Land Use Ordinance. General residential zones are primarily intended for housing. Permitted uses include: 1. Residential buildings, 2. shops, bars, and restaurants serving the local area, as well as non-disruptive craft or small-scale industrial businesses, 3. facilities for religious, cultural, social, and healthcare purposes. Uses allowed only by exception are: 1. lodging businesses, 2. other non-disruptive commercial enterprises, 3. administrative facilities, 4. horticultural businesses, 5. gas stations
4.1 Type of Land Use Within the planning area, a general residential zone is designated according to § 4 of the Land Use Ordinance. General residential zones are primarily intended for housing. Permitted uses include: 1. Residential buildings, 2. shops, bars, and restaurants serving the local area, as well as non-disruptive craft or small-scale industrial businesses, 3. facilities for religious, cultural, social, and healthcare purposes. Uses allowed only by exception are: 1. lodging businesses, 2. other non-disruptive commercial enterprises, 3. administrative facilities, 4. horticultural businesses, 5. gas stations