ᐅ New Construction on a New Plot Without Children – How Should We Approach It?

Created on: 9 Sep 2015 09:05
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Baujulchen
Hello,
first, a brief introduction.

We (my better half and main breadwinner^^, 52, and I, 44) are facing a new challenge.

Due to an expected job change (within the same company, so no new probation period, etc.), we expect to move again in about 3 years.

Our child will almost be finished with university by then and will be independent. He will probably stay in our region at first, as he studies in a practical training network and already has a job opportunity lined up.

We built once before in 1996/1997—a small prefabricated house at a fantastic price. There was a great offer for families with a major bank and a regional prefab manufacturer. We were able to buy the land quite cheaply from the municipality back then. Due to relatively high interest rates (compared to now^^), we are now close to paying off the mortgage.

We will be finished with the “new start” almost exactly by then.

The current house has a great layout, and with 107m2 (1150 sq ft) of living space, with little hallway and good room distribution, it was more than enough space for a family with one child.

There were few defects back then, and overall, we were very satisfied with the decision to build a prefab house. We were also a bit lucky because the company went bankrupt three years after we moved in.

About our plans now:

Plot prices in the region we expect to move to are around 40-45€/m2 (about $4.50-$5.00 per sq ft), fully serviced. We do NOT want a huge garden, as we see with our parents that, at a certain age, you just can’t maintain everything as you’d like. 600m2 (about 6500 sq ft), if the layout fits a bungalow on it, will be more than enough for our needs.

We plan about 110-115m2 (1180-1240 sq ft) of living space, all on one level (we’re not getting any younger ;-) ) with a partly covered terrace, possibly a garage or carport, and if the price works out, maybe a partial basement. A basement is not absolutely necessary—we don’t have one now and manage with a crawl space. You learn not to keep everything ;-)

We want a bedroom, possibly with a walk-in closet, a bathroom with bathtub AND shower, a guest room/office, and possibly an additional guest toilet with a shower. Depending on whether there is a basement or not, maybe the option for a sauna (sigh... I've always wanted one^^).

An open space plan (living room, dining room, kitchen) is under consideration.

Of course, I’ve started researching... and it was almost overwhelming... at our time, there were just a handful of well-known prefab companies, some of which actually still exist.

How should we best approach this? I have absolutely no idea about current energy standards, what is possible, what is necessary, and how that might affect related financing (we are calculating about 150,000€ (about $160,000) of own capital, partly from the sale of the current house, if all goes well).
KfW 40/55/70?? Passive house, geothermal energy... until last week, these were all completely new “words” for me, and now I’m starting to read up on them. But how deeply do I need to get into this?

The planned move would possibly be around mid-2018, so there is plenty of time to plan and gather information.

Many things that we added to the current house over time we would like to have again, for example, a large covered terrace with automatic sun protection, solar panels for hot water, a walk-in shower, electric roller shutters, possibly with sun sensors, etc.

Ideally, we would like everything from a single source, as we don’t have much time. Because we cannot be on site all the time (about 300km (190 miles) between current home and new location), we need someone we can 100% rely on (I know, that’s utopia ;-) ).

How would you approach this situation?

Thanks in advance—I’m hoping for one or two tips regarding planning and implementation.

dat Baujulchen :-)
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Baujulchen
9 Sep 2015 19:56
Many thanks to you as well, @Bieber0815.
To define the financial framework, I will first need to find out how much a bungalow of our desired size would cost. Then add the land, additional land costs, utility connection fees, notary fees, etc. I was thinking I could count on about 2/3 of the current house’s approximate selling price as equity (your mentioned worst case).
There is a wide selection of plots available in the region, partly infill plots (which will probably be gone by the time we start) and partly designated building areas where the upcoming construction phases might fit our timeline.

I have also identified some planned new development areas where detailed information is not yet available.

Why wouldn’t you pay attention to the wall construction? I thought it is quite important right now because of the various energy efficiency regulations?

Best regards,
Jule
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Bauexperte
9 Sep 2015 20:55
Good evening,

I’ll try to give you an outlook.
Baujulchen schrieb:
Land prices in the region where it will most likely be are around 40-45€/m2 fully developed ... 600m2 (about 6,460 ft2), if the layout is good so that a bungalow fits, would be more than enough for our needs.

We’re planning about 110-115m2 (1,184-1,238 ft2) of living space, all on one level (we’re no longer that young ;-) ) with a partly covered terrace, possibly a garage or carport, and if the budget allows, maybe a partial basement. A full basement isn’t absolutely necessary; we don’t have one at the moment either and manage with our crawl space. You don’t learn to hold on to everything ;-)

Bedroom, possibly with a walk-in closet, bathroom with bathtub AND shower, a guest room/office – guest WC possibly with a shower as well. Depending on whether there is a basement or not, maybe even the possibility of a sauna (sigh... I’ve always wanted one^^)

Land: approx. EUR 27,000 (a dream for every builder)

Bungalow about 120m2 (about 1,292 ft2) (in my opinion, you’ll need that much for your desired room layout): approx. EUR 192,000

Full basement: approx. EUR 50,000 (a partial basement will be at most EUR 10,000 cheaper)

Carport/garage 3.00 x 6.00m (10 x 20 ft): EUR 5,000

Painting/flooring work included in the shell: EUR 15,000

Additional building costs: EUR 35,000

Reserve for extras: EUR 10,000

Exterior work included in the shell: EUR 10,000 (only the essentials)

Total: approx. EUR 344,000 (this is a dream for many as well)
Baujulchen schrieb:
near the North Sea, also Lower Saxony 🙂

I would jump at that immediately... if I didn’t still have to work 😀

Regards, Bauexperte
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Baujulchen
9 Sep 2015 21:14
Thanks to you as well for the assessment :-)

I hope that the estimate is really at the absolute upper limit ;-)

Sure, you can always spend more, but this already seems a bit too high to me, especially compared to our first house build ;-)

Okay, a basement is not necessary, and neither is a sauna (sigh)

But it’s already a figure to work with for further planning

I will now start looking into the different heating options and just think about how much we are willing to start over again...
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Bauexperte
9 Sep 2015 21:32
Baujulchen schrieb:

I hope the estimate is really at the absolute limit ;-)
I don’t think so.
Baujulchen schrieb:

I’m now going to look into the various heating options and just consider to what extent we are willing to start over again...
Sorry, I forgot to add. The estimate is based on a KfW 70 efficiency house including an air-to-water heat pump and ventilation system.

Best regards, Bauexperte
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Baujulchen
9 Sep 2015 21:46
Ah, thanks :-)

Let’s see where this journey takes us.
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Bieber0815
9 Sep 2015 21:57
Baujulchen schrieb:
To define the financial framework, I will first need to find out what a Bungi of our desired size would cost.
I actually meant your own financial framework in the sense of "What can I afford?" Not: "How much does the house cost?" But of course, having some idea of the expected costs is part of it.
Baujulchen schrieb:
Then I thought I could count on about 2/3 of the current house's approximate sale price as equity (your mentioned worst case)
The worst case would be zero, but that might be unrealistic. For now, I would monitor the local market to get a feel for prices. When it gets more concrete, I would consider it reasonable to invest a little money in a reliable (!) property appraisal of your own house.

Keep in mind that the sale proceeds of the old house might arrive significantly later than when the final payment for the new build is due. This is not an uncommon situation, and there should be solutions for it. You just need to remember to plan for it.