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michisa868886 Nov 2014 20:09Hello,
My girlfriend and I are now seriously starting to focus on building a house. We mentioned it during our financial consultation, and the planning is slowly beginning. Regarding our finances: our combined net income is about 3500€ (approximately $3,800). We have equity of around 55,000€ (about $60,000). The maximum budget for the house, including the plot and all additional costs, is 400,000€ (about $435,000). Our house is planned to have roughly 150m² (1,615 sq ft) of living space, plus a basement and a double garage. The plot will cost about 60,000€ (around $65,000).
I have been a construction technician for three months and work at a structural engineering firm. Before that, I worked as a bricklayer for 11 years. That is why the house will be largely built as self-construction.
Regarding the planning, I am still undecided whether to involve an architect for the initial steps. I actually feel confident enough to plan our single-family home myself, and according to the regional building code, I am allowed to do so up to a certain size. However, I do have no experience in estimating the cost plan, which is why I am hesitating.
Does anyone have experience with a similar case or useful advice?
My girlfriend and I are now seriously starting to focus on building a house. We mentioned it during our financial consultation, and the planning is slowly beginning. Regarding our finances: our combined net income is about 3500€ (approximately $3,800). We have equity of around 55,000€ (about $60,000). The maximum budget for the house, including the plot and all additional costs, is 400,000€ (about $435,000). Our house is planned to have roughly 150m² (1,615 sq ft) of living space, plus a basement and a double garage. The plot will cost about 60,000€ (around $65,000).
I have been a construction technician for three months and work at a structural engineering firm. Before that, I worked as a bricklayer for 11 years. That is why the house will be largely built as self-construction.
Regarding the planning, I am still undecided whether to involve an architect for the initial steps. I actually feel confident enough to plan our single-family home myself, and according to the regional building code, I am allowed to do so up to a certain size. However, I do have no experience in estimating the cost plan, which is why I am hesitating.
Does anyone have experience with a similar case or useful advice?
Not to be rude, but financing 350k is quite ambitious. You never really know if or how long the 3.5k monthly income will be guaranteed.
And if you plan to do all the construction yourself, won’t your regular job suffer? Especially since you will still need paid helpers—you can hardly do everything alone.
As I said, I don’t want to be discouraging, even if it sounds that way right now, but this is a huge project. How well grounded are you in theory? Just because you have 11 years of masonry experience doesn’t mean you have the complete planning of all trades under control—heating, gas, electrical, kitchen...
And if you plan to do all the construction yourself, won’t your regular job suffer? Especially since you will still need paid helpers—you can hardly do everything alone.
As I said, I don’t want to be discouraging, even if it sounds that way right now, but this is a huge project. How well grounded are you in theory? Just because you have 11 years of masonry experience doesn’t mean you have the complete planning of all trades under control—heating, gas, electrical, kitchen...
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Bieber08157 Nov 2014 06:50A budget of 400,000 euros (typo above?) combined with doing "everything" as self-build doesn’t quite add up for me. You have a reasonably priced plot of land, so around 300,000 euros (you need to factor in additional costs somewhere) would be available for the house. In my opinion, that amount is enough to have a turnkey build done.
What monthly payment would you be able to manage (household budget, living expenses, etc.)? How long are you willing to pay off the mortgage? You can try calculating some figures online or with a calculator (calc.exe can handle mortgages as well).
For the house, I would roughly list the main cost items (house, basement, garage, land, outdoor areas, additional expenses, etc.) and write some numbers next to them. Others here probably know better what exactly to include. It would be helpful if you could provide a more specific starting point.
By the way, a friend who is an electrical engineer (so not exactly a specialist, but still an engineer ;-) ) planned his entire house himself and only had an architect approve the plans at the end (also for legal reasons). So it’s possible if you have some skills and time (!) to invest.
What monthly payment would you be able to manage (household budget, living expenses, etc.)? How long are you willing to pay off the mortgage? You can try calculating some figures online or with a calculator (calc.exe can handle mortgages as well).
For the house, I would roughly list the main cost items (house, basement, garage, land, outdoor areas, additional expenses, etc.) and write some numbers next to them. Others here probably know better what exactly to include. It would be helpful if you could provide a more specific starting point.
By the way, a friend who is an electrical engineer (so not exactly a specialist, but still an engineer ;-) ) planned his entire house himself and only had an architect approve the plans at the end (also for legal reasons). So it’s possible if you have some skills and time (!) to invest.
M
michisa868887 Nov 2014 14:14Hello,
first of all, thank you both for your opinions. And I’m sure no one here will be upset about others sharing their views. That’s what this thread is for.
Regarding the construction budget of 400,000, that is the maximum amount based on initial discussions with our financial advisor. This includes everything—land, house, interior finishing, garage, and additional construction costs. For the financing, our equity will of course be deducted from the total, plus the value of our own labor, which is expected to be quite significant.
A professional planner will definitely be involved for the detailed planning of the electrical system, heating, and so on. And yes, I’m confident in designing and drafting the house according to our preferences. However, I have little experience estimating the costs. Getting the whole project approved should not be a problem, as I studied this during my technical training.
Our initial thoughts on the mortgage payment are between at least 800€ and a maximum of 1,000€ per month (approximately $860–$1,075). The 1,000€ (about $1,075) would be the absolute limit since a family plan (children) is also planned.
I’m aware this will take a lot of time, but it has to be done. Work-wise, there are no issues since I have fixed working hours.
first of all, thank you both for your opinions. And I’m sure no one here will be upset about others sharing their views. That’s what this thread is for.
Regarding the construction budget of 400,000, that is the maximum amount based on initial discussions with our financial advisor. This includes everything—land, house, interior finishing, garage, and additional construction costs. For the financing, our equity will of course be deducted from the total, plus the value of our own labor, which is expected to be quite significant.
A professional planner will definitely be involved for the detailed planning of the electrical system, heating, and so on. And yes, I’m confident in designing and drafting the house according to our preferences. However, I have little experience estimating the costs. Getting the whole project approved should not be a problem, as I studied this during my technical training.
Our initial thoughts on the mortgage payment are between at least 800€ and a maximum of 1,000€ per month (approximately $860–$1,075). The 1,000€ (about $1,075) would be the absolute limit since a family plan (children) is also planned.
I’m aware this will take a lot of time, but it has to be done. Work-wise, there are no issues since I have fixed working hours.
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Bauexperte7 Nov 2014 14:36Hello,
This means:
Plot: €60,000
Single-family house built to KfW 70 standard: €248,000
Usable basement: €50,000
Prefabricated garage 6 x 6 meters (20 x 20 feet): €13,000 (including strip foundations; executed as foundation slab with sectional door)
Additional construction costs: €35,000–40,000
Painting work carried out as self-performed labor: €10,000
Floor coverings carried out as self-performed labor: €10,000
Outdoor areas carried out as self-performed labor: €10,000 (only the essentials)
Reserve for extras: €10,000
The effort with a “normal” handling approach, meaning house construction through a general contractor/general contractor with subcontractors, is approximately €451,000.
You probably mean that this is why you can act as your own construction manager 😉
I’ve given you cost figures above, assuming you want to contract a single provider in the conventional way. From these numbers, you can already see that your budget is too small for your project. Also, if you think about contracting individual trades yourself, current experiences with separate trade contracts and time demands can be found here:
https://www.hausbau-forum.de/threads/das-alte-leid-schlüsselfertig-einzelvergabe.11013/
Best regards, Bauexperte
michisa86888 schrieb:
Equity capital around €55,000. Our maximum budget for the house, including the plot and all additional costs, is €400,000. Our house is planned with about 150m² (1,615 sq ft) of living space. Additionally, a basement and double garage. The land price will be around €60,000.
This means:
Plot: €60,000
Single-family house built to KfW 70 standard: €248,000
Usable basement: €50,000
Prefabricated garage 6 x 6 meters (20 x 20 feet): €13,000 (including strip foundations; executed as foundation slab with sectional door)
Additional construction costs: €35,000–40,000
Painting work carried out as self-performed labor: €10,000
Floor coverings carried out as self-performed labor: €10,000
Outdoor areas carried out as self-performed labor: €10,000 (only the essentials)
Reserve for extras: €10,000
The effort with a “normal” handling approach, meaning house construction through a general contractor/general contractor with subcontractors, is approximately €451,000.
michisa86888 schrieb:
I have been a construction technician for 3 months and work at a structural engineering firm. Before that, I worked as a bricklayer for 11 years. That’s why the whole project is being done in self-performed labor.
You probably mean that this is why you can act as your own construction manager 😉
michisa86888 schrieb:
I’m still unsure whether to hire an architect for the initial planning stages. Actually, I feel confident managing the entire planning of our single-family house myself. According to the regional building code / planning permission regulations, I’m allowed to do so up to a certain size. I just lack experience in cost estimation, so I’m hesitating.
I’ve given you cost figures above, assuming you want to contract a single provider in the conventional way. From these numbers, you can already see that your budget is too small for your project. Also, if you think about contracting individual trades yourself, current experiences with separate trade contracts and time demands can be found here:
https://www.hausbau-forum.de/threads/das-alte-leid-schlüsselfertig-einzelvergabe.11013/
Best regards, Bauexperte
D
Doc.Schnaggls7 Nov 2014 14:39michisa86888 schrieb:
Our initial thoughts regarding the installment lie between at least €800 and a maximum of €1,000. The €1,000 would already be the absolute limit since family planning (children) is also planned.Hello,
With a loan amount of approximately EUR 345,000.00 (total construction cost EUR 400,000.00 minus equity of EUR 55,000.00), an installment of EUR 800.00 up to a maximum of EUR 1,000.00 is already quite ambitious.
As a rough guideline, you can calculate EUR 500.00 installment per EUR 100,000.00 loan amount – this value can of course vary upwards or downwards depending on the loan-to-value ratio.
For EUR 345,000.00, that would be around EUR 1,725.00. Naturally, it is possible to have a lower installment, but then the repayment rate (for example 1.00%) is so low that you need to expect loan terms longer than 40 years unless you make additional repayments! Also, the interest rate risk should not be overlooked if you do not choose a sufficiently long fixed interest period.
Best regards,
Dirk
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