ᐅ Prefabricated House or Traditional Solid Construction Companies – Budget
Created on: 13 May 2020 12:56
C
Cary2020
Hello everyone. As you can see, I am new here and looking for advice. We are 25 and 27 years old, both employed, and our monthly net income is 3100 € (approximately $3,400). We have no equity saved up (we are already aware of the risks). Now, by coincidence, we have found a plot of land. It’s the only one in the area that meets our expectations (small, no more than 500 m² (6000 sq ft)). It was more or less a “random find.” Although we had agreed that we wanted to build a house someday, we hadn’t expected it to happen so soon. We want to build at the edge of the Harz mountains, in Lower Saxony. That’s the basic info.
Over the past few days, we have spent a lot of time researching the topic but have not reached any concrete conclusions yet. We have had initial phone appointments with banks; even without equity, it’s not impossible, and some very reputable, well-known banks were involved. We have further appointments with first companies and additional banks planned for next week. However, I would also like to connect with “regular” homeowners to get realistic assessments because we probably belong to this group ourselves.
Does anyone have experience with building a house at our income level? Is it feasible not only on paper but also in reality?
Then the big question arises: do we want a traditional solid house (brick and mortar) or a prefab house? Twenty years ago, when my parents built their home, prefab houses had a bad reputation. Nowadays, that seems to have improved significantly. Basically, we are still undecided. We see major advantages with prefab houses in the absence of moisture problems, clearly the price (is that really the case?), and according to experience reports, there is less shoddy workmanship. I’m hoping to learn from your experiences here.
The last point, of course, will be contacting companies. I am a bit hesitant about regional developers and would prefer to get in touch with larger firms like Viebrockhaus (probably quite expensive), Massa Haus, Arge, etc. Here too, I hope to have an initial exchange with you.
As you can see, we are just starting out and would like to bring some orientation to our confusion of thoughts. Thanks in advance for your help.
Over the past few days, we have spent a lot of time researching the topic but have not reached any concrete conclusions yet. We have had initial phone appointments with banks; even without equity, it’s not impossible, and some very reputable, well-known banks were involved. We have further appointments with first companies and additional banks planned for next week. However, I would also like to connect with “regular” homeowners to get realistic assessments because we probably belong to this group ourselves.
Does anyone have experience with building a house at our income level? Is it feasible not only on paper but also in reality?
Then the big question arises: do we want a traditional solid house (brick and mortar) or a prefab house? Twenty years ago, when my parents built their home, prefab houses had a bad reputation. Nowadays, that seems to have improved significantly. Basically, we are still undecided. We see major advantages with prefab houses in the absence of moisture problems, clearly the price (is that really the case?), and according to experience reports, there is less shoddy workmanship. I’m hoping to learn from your experiences here.
The last point, of course, will be contacting companies. I am a bit hesitant about regional developers and would prefer to get in touch with larger firms like Viebrockhaus (probably quite expensive), Massa Haus, Arge, etc. Here too, I hope to have an initial exchange with you.
As you can see, we are just starting out and would like to bring some orientation to our confusion of thoughts. Thanks in advance for your help.
Your first question was...
Does anyone have experience with home construction within our income range? Is it feasible not only on paper but also in reality?
And this was answered in combination with the income.
Your other questions can be answered relatively easily. No general contractor (GC) will realistically give you an accurate estimate for additional construction costs. A prefabricated house is not cheaper than a solid or masonry build; it is often more expensive. Prefabricated houses can also have moisture issues, even just from the screed. Owner participation (self-build) is possible to a limited extent. If so, it would be as a finishing variant, but who really knows how to handle that. The calculation is relatively simple and is more reflective of the years 2018/2019. Cost per square meter of living space: 2000€ (approx. $2200), additional construction costs for a flat plot: 30,000€ (approx. $33,000), outdoor landscaping: 20,000€ (approx. $22,000) excluding garage or carport. All this is without fittings, furniture, or contingency. This is the amount you should ask your bank about, not some fictional figure from a GC who just wants your signature. There won’t be anything left after that. You don’t have to fall for this illusion.
Does anyone have experience with home construction within our income range? Is it feasible not only on paper but also in reality?
And this was answered in combination with the income.
Your other questions can be answered relatively easily. No general contractor (GC) will realistically give you an accurate estimate for additional construction costs. A prefabricated house is not cheaper than a solid or masonry build; it is often more expensive. Prefabricated houses can also have moisture issues, even just from the screed. Owner participation (self-build) is possible to a limited extent. If so, it would be as a finishing variant, but who really knows how to handle that. The calculation is relatively simple and is more reflective of the years 2018/2019. Cost per square meter of living space: 2000€ (approx. $2200), additional construction costs for a flat plot: 30,000€ (approx. $33,000), outdoor landscaping: 20,000€ (approx. $22,000) excluding garage or carport. All this is without fittings, furniture, or contingency. This is the amount you should ask your bank about, not some fictional figure from a GC who just wants your signature. There won’t be anything left after that. You don’t have to fall for this illusion.
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nordanney15 May 2020 11:47Cary2020 schrieb:
In very few threads does it say: A solidly built house cost X amount, a prefab house cost Y amount.How is that information helpful? Sometimes a house has a basement, sometimes not. Sometimes luxury fittings, sometimes very basic. Sometimes in Munich, sometimes in the middle of nowhere. Sometimes it’s a simple, practical design, other times unusual architecture. Sometimes a lot of personal work is done, sometimes none at all. And then there’s the difference between developer-built houses, architect-designed homes with individual contractor assignments, general contractors, etc. Or new builds versus renovated existing buildings.You can’t really use prices like that. For example, my last house cost about €1,450 gross per square meter (300 sqm (3,229 sqft) plot size, 250 sqm (2,691 sqft) living space) (including outdoor areas like a 75 sqm (807 sqft) wooden terrace and garden pavilion), with high-quality finishes including geothermal heating, some smart home features, an open fireplace, three bathrooms, controlled residential ventilation, etc. (four years ago) – located in the extended Düsseldorf area. Solid construction roughly KfW 55 standard, partly brickwork, partly external thermal insulation composite system (ETICS), no basement.
Cary2020 schrieb:
In summary, just imagine we are the small family of craftsmen from next door from about 20 years ago. Something like that.Well, I would question whether that was necessarily a good thing. The late ’90s and early 2000s were not a good time, neither for tradespeople nor for Germany as a whole. Unemployment was over 10%, record debts, abolition of the master craftsman certification requirement to bring craftsmanship back into the workforce. At that time, I was trying to find an apprenticeship.Cary2020 schrieb:
My car is 21 years old, and it cost 4000 € seven years agoAlso, I’m not sure if 4000 € for a 14-year-old car is actually a good deal. Three years ago, I got a car that was less than 5 years old for 1000 € more.Cary2020 schrieb:
In most threads, it doesn’t say: a solid house cost sum xy, a prefabricated house sum z. Instead, it’s always “would have,” “could be,” and “might.”Take a look at the posts from @Nordlys. You’ll find what you’re looking for there.Our masonry-built house was completely dry after the screed drying program; it is actually rather too dry than in any way damp, and it was like this already when we moved in. For a very affordable, small house, I would also look at general contractors nearby. Town & Country is also a provider of smaller “standard houses.” A small house is always a bit more expensive per square meter because bathrooms and other fixed costs remain the same.
Best regards
Sabine
Best regards
Sabine
@Cary2020: Don’t be discouraged right away. You come across as someone who, even though you’re just starting out, approaches such a project in a very practical and thoughtful way. So, take the comments here more as warnings rather than accusations or condescension. If you and your partner then make the decision for the project consciously and with open eyes, that’s good.
There’s a saying—I don’t remember who originally said it (Ustinov?)—“When you’re old and look back on your life and regret decisions, let it be because of something you did, not because of something you didn’t do.” Or something like that. That really stuck with me. Especially if you don’t have a family yet, you can afford to take a bit more risk.
With all the conservative examples here, maybe I can give you a different one. I purposely haven’t posted about financing because everyone here would think I’m crazy for what I planned. I won’t do that now either, but I’ll tell you about my project from five years ago. Back then, I bought a condominium in Berlin. No equity, total purchase price of 330,000 euros (approx. $350,000), bank valuation (mortgage lending value) of 210,000 euros (approx. $224,000). Still, they approved it (in 2015, the ING was a bit more flexible). And that with a net salary of 2,800 euros (approx. $3,000). That would have been torn apart here. Five years later, the apartment is worth twice as much, so I could sell it now for about 30% above the purchase price. If I hadn’t done it, I’d still be stuck in my two-room rental apartment, possibly with 60,000–80,000 euros (approx. $64,000–85,000) in savings by now, but that wouldn’t help me today anyway, because property prices and construction costs have gone up even more.
Now, the situation isn’t quite comparable since you want to build in a completely different area that probably doesn’t promise such price developments. But you’re two and, according to what you’ve said, there is a lot of family support locally. What I want to say is: don’t completely check out of the forum just because there might be different expectations and (security) needs here. I have similar discussions in the planning forum regarding space. The dominant “living space aristocracy” here often can’t imagine that my plans would already represent a huge improvement in quality of life. I just take it as a suggestion, a warning, but I won’t let it stop me from following my path to my dream—at most, it inspires me.
One question I still have: You rule out existing buildings so categorically. Why? Especially considering your family’s handyman skills, wouldn’t a building that you can nicely renovate be a way to compensate for tight financing?
Best regards
Tolentino
There’s a saying—I don’t remember who originally said it (Ustinov?)—“When you’re old and look back on your life and regret decisions, let it be because of something you did, not because of something you didn’t do.” Or something like that. That really stuck with me. Especially if you don’t have a family yet, you can afford to take a bit more risk.
With all the conservative examples here, maybe I can give you a different one. I purposely haven’t posted about financing because everyone here would think I’m crazy for what I planned. I won’t do that now either, but I’ll tell you about my project from five years ago. Back then, I bought a condominium in Berlin. No equity, total purchase price of 330,000 euros (approx. $350,000), bank valuation (mortgage lending value) of 210,000 euros (approx. $224,000). Still, they approved it (in 2015, the ING was a bit more flexible). And that with a net salary of 2,800 euros (approx. $3,000). That would have been torn apart here. Five years later, the apartment is worth twice as much, so I could sell it now for about 30% above the purchase price. If I hadn’t done it, I’d still be stuck in my two-room rental apartment, possibly with 60,000–80,000 euros (approx. $64,000–85,000) in savings by now, but that wouldn’t help me today anyway, because property prices and construction costs have gone up even more.
Now, the situation isn’t quite comparable since you want to build in a completely different area that probably doesn’t promise such price developments. But you’re two and, according to what you’ve said, there is a lot of family support locally. What I want to say is: don’t completely check out of the forum just because there might be different expectations and (security) needs here. I have similar discussions in the planning forum regarding space. The dominant “living space aristocracy” here often can’t imagine that my plans would already represent a huge improvement in quality of life. I just take it as a suggestion, a warning, but I won’t let it stop me from following my path to my dream—at most, it inspires me.
One question I still have: You rule out existing buildings so categorically. Why? Especially considering your family’s handyman skills, wouldn’t a building that you can nicely renovate be a way to compensate for tight financing?
Best regards
Tolentino
Responses like Town & Country or those regarding moisture issues are helpful. I expected some pushback, but I was practically torn apart here. Not a great experience for a newcomer. Everyone can, should, and is allowed to express concerns, but this felt like a lion’s den filled with fresh meat.
I rule out existing properties for two reasons. 1. We have been researching potential ownership for about two years. In this area, there is nothing that doesn’t require a complete renovation down to the exterior walls. Or there are larger houses starting at 280,000 with 120 m² (1,290 sq ft), 4–5 rooms, and smaller plots than what we are looking for, which are almost impossible to find here.
2. Simply put, we would prefer a new build that can be designed roughly according to our wishes, as long as it fits within the budget.
I rule out existing properties for two reasons. 1. We have been researching potential ownership for about two years. In this area, there is nothing that doesn’t require a complete renovation down to the exterior walls. Or there are larger houses starting at 280,000 with 120 m² (1,290 sq ft), 4–5 rooms, and smaller plots than what we are looking for, which are almost impossible to find here.
2. Simply put, we would prefer a new build that can be designed roughly according to our wishes, as long as it fits within the budget.