ᐅ New Construction Project – Do You Have Any Tips?

Der Da schrieb:

About our building project:

- We want a single-family house with a granny flat (a two-family house is also an option).
The "main unit" should have 4-5 rooms with about 120 m² (1,292 sq ft) and the
granny flat 3 rooms spread over about 80 m² (860 sq ft).
- The plot is not yet secured – we wanted to first find out if the project is feasible.
- A new build is planned in the Stuttgart area, within a radius of about 40 km (25 miles).
- Budget: a total of approximately 350,000 to a maximum of 500,000 €.
- The requirements are quite basic; we don’t need any "bells and whistles" – four walls, a roof, garage and storage space (whether in the basement or a separate room doesn’t matter).
The price-performance ratio just has to be right.
- Cost breakdown: plot approximately 120,000 €, additional costs 40,000 €, garden 10,000 €, garage 7,000 €, kitchen 20,000 €. The rest of the budget is intended for the house itself.

Now to our questions:

1. Is the project at all feasible with this budget? What kind of amount should we expect in this
range otherwise?

In the Stuttgart area, it will be difficult to find a plot at your price. I know the area well and estimate land prices at around 300 €/m² (28 €/sq ft).
Does the 120,000 € already include all additional costs? For example, 5% property transfer tax, 3.57% real estate agent fees, 2% notary and land registry?
The budget for the garden is optimistic, but it can be completed later... I also include driveway and terrace in this.
A 7,000 € garage is possible if it’s a standard 3 x 6 m (10 x 20 ft) garage.
That would leave you with about 300,000 € for the house construction itself. Without a basement, I’d say that is doable. With a basement, which can easily cost 40,000 € or more, it will be tight.

A 400 m² (4,300 sq ft) plot “might” be quite small – more so for a two-family house, less so for a single-family with a granny flat. If the granny flat is 80 m² (860 sq ft), then there won’t be much space left for kitchen and living room on the ground floor of the main unit; so better commit to a two-family house or make the granny flat smaller.

Additional building costs of 35,000 € are realistic (if the plot does not require special foundation work) – however, this amount does not include painter works or floor coverings; external facilities and access paths are extra. Allocating 10,000 € for landscaping is reasonable – that can cover some trees and turf, which should suffice initially. For a terrace, budget about € 60.00 per square meter (approximately $6 per sq ft) and for access paths about € 55.00 per square meter.

A solidly constructed two-family house of the desired size is possible for around 300,000 € including a basement, but only compliant with basic energy-saving regulations. For KfW 70 standard (German energy efficiency), you would need to invest another good 25,000 € (insulation, additional technology). Extras such as electric roller shutters etc. should also be considered – so start from about 300,000 € for a house on a foundation slab.

A prefabricated garage 3 x 6 m (10 x 20 ft) can also be obtained for about 7,000 €, even with an electric sectional door. You will probably need to prove 4 parking spaces.

2. Classic topic: wood or brick/masonry? Generally, we are open and unbiased towards both building materials.
We understand that both have advantages and disadvantages.
In the meantime, we have been overwhelmed with many often contradictory opinions and views.
a) Is it true, for example, that "wooden houses" last three times longer than "brick houses" and also offer better fire protection?

Wood usually burns much better than brick 🙂 I would rate fire protection similarly for both, as fire-retardant materials have to be used anyway. But in the end, when there is a fire, every house suffers.
Regarding durability, nothing definite can be said; there are 30-year-old concrete or masonry buildings and well-maintained 100-year-old houses. It is always a matter of maintenance and care.
Our house supplier has been building timber frame houses for 60 years that are still standing today. The question is more whether one still wants to live in a house with today’s standards in 50 years? Do you know how technology will change? I think building houses for generations is no longer that worthwhile today... children usually tear it down and build something new anyway 🙂

All marketing talk aside – high-quality timber houses are not shorter-lived than their solid counterparts. And if a brick house burns, only the walls remain – whether these can be reused in a new build is questionable.

b) Is it true that sound insulation in "wooden houses" is significantly worse than in "brick houses"?

It depends on workmanship and quality.

No.

c) A supplier claimed that a "wooden house" is just as stable and "holds up" just as well as a "brick house". Is this correct?

Not those cheap California-style timber shacks, but a solid timber house certainly... Swedes and Norwegians build almost exclusively this way, so it can’t be that bad.
Yes.

d) What do you know about the resale value of the two building methods? We’ve read several times that when selling a "wooden house," one can expect up to a 40% loss in value.

There are true fortune tellers among sellers. If you plan to sell, build with brick, because prejudices against wood will not vanish quickly. In my opinion, the resale value is influenced mainly by the location of the property – especially in the Stuttgart area, where space is really scarce.

It largely depends on the supplier you choose. Generally, banks assign a lower lending value for prefab houses. When reselling, it’s just like with everything else: the market decides supply and demand.

e) Is it true that the two materials cost about the same for comparable quality standards?

Our talks have shown... yes. Those who build cheaply should not be surprised later.
A high-quality prefab or timber house is generally more expensive than a solidly built single-family house. It has to be, because the effort from production to construction is quite different.

3. Are cheaper builders automatically of lower quality than more expensive ones? Do you know reputable and high-quality builders who are still within our budget?

You always have to consider how and why they can offer a lower price. Either they pay their workers poorly, use the cheapest building materials, or the invoice is later inflated through "extra services" and excessive markups. Or it’s an insolvency model 🙂
Cheap is always relative. If a supplier undercuts others by more than 5,000 to 8,000 € substantially, you should be cautious. Because cheap is always in the end quite expensive.

5. Is our rough cost estimate (above) somewhat realistic?

Roughly, yes. We are building a prefab house without basement of about 140 m² (1,500 sq ft) for 215,000 € plus additional costs. A colleague of mine built a two-family house including a basement for about 330,000 €.

Yes.

6. What do you think about mechanical ventilation with heat recovery? Is this recommended for both building methods
(wood/brick), or have you had bad experiences with it?

I wouldn’t build without it... especially in heavily insulated solid construction, things are completely airtight. If ventilation is done incorrectly, mold is guaranteed regardless of the building method.
Financially and in terms of heating costs, these systems may not pay off, but they definitely improve living comfort. Costs are around 7,000 - 10,000 €.

I always recommend installing a ventilation system, especially if you choose a prefabricated house. All houses are built so tightly nowadays that they offer ideal conditions for mold. Even if the system may not amortize, it spares you from mold and provides generally pleasant indoor air quality.

my answers in blue