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.
S
saralina8720 May 2020 12:45If I were in your position, I would also take a look at the basic standard models offered by various prefab house manufacturers. Some of them are definitely suitable for cost calculations.
For example, there is the Gussek House Myline 110, which I think is perfectly fine for two people. It costs around 200,000 euros without the foundation slab, flooring, and doors. You should be able to cover ancillary construction costs and a simple kitchen for about 100,000 euros, I would say. Your plot of land is practically free, after all. Another option to consider is that since the house is only meant for the two of you, maybe even a bungalow would do. That would simplify things even more.
Ancillary costs for a house – we are currently calculating 500 euros per month including reserves. Since your living area won’t be large, you should be fine with 500 euros in any case.
You will need to determine your lifestyle and other fixed costs individually. I took the time to analyze our bank statements from the entire last year (Excel spreadsheet) and calculated an average monthly amount, X, which we spend without restrictions. This will give you a quick idea whether and by how much you would need to tighten your belt.
For example, there is the Gussek House Myline 110, which I think is perfectly fine for two people. It costs around 200,000 euros without the foundation slab, flooring, and doors. You should be able to cover ancillary construction costs and a simple kitchen for about 100,000 euros, I would say. Your plot of land is practically free, after all. Another option to consider is that since the house is only meant for the two of you, maybe even a bungalow would do. That would simplify things even more.
Ancillary costs for a house – we are currently calculating 500 euros per month including reserves. Since your living area won’t be large, you should be fine with 500 euros in any case.
You will need to determine your lifestyle and other fixed costs individually. I took the time to analyze our bank statements from the entire last year (Excel spreadsheet) and calculated an average monthly amount, X, which we spend without restrictions. This will give you a quick idea whether and by how much you would need to tighten your belt.
@Cary2020
Our additional housing costs in the new house are almost the same as in our previous rental apartment, just organized differently. Earlier, we had base rent + additional costs (heating, garbage, caretaker, etc.) + water + electricity + internet + insurance. Now it’s mortgage payment + additional costs such as property tax + heating + water + electricity + internet + garbage + insurance. Electricity and water costs are similar, heating consumption is cheaper because of the modern system.
Gas has been eliminated; with connection and basic fees, we can heat for 20 years using an air-to-water heat pump.
Frank
Our additional housing costs in the new house are almost the same as in our previous rental apartment, just organized differently. Earlier, we had base rent + additional costs (heating, garbage, caretaker, etc.) + water + electricity + internet + insurance. Now it’s mortgage payment + additional costs such as property tax + heating + water + electricity + internet + garbage + insurance. Electricity and water costs are similar, heating consumption is cheaper because of the modern system.
Gas has been eliminated; with connection and basic fees, we can heat for 20 years using an air-to-water heat pump.
Frank
Hi,
I haven’t built myself yet; we are still in the planning stage. Our house will be much larger and without any DIY work (except for the garden).
But here’s some advice I can give you:
Keep a household budget for a few months. You can even do this retrospectively for the past months by checking your online banking transactions. Just look honestly at what you really spent without subtracting anything! For example, don’t say, “I bought a car; I’ll deduct that,” because you will likely need to buy several cars over the next 35 years. Look at what remains. Only then can you accurately determine your needs. The excuse “we will be more frugal in the future” doesn’t count.
At the same time, you won’t have to accept being told it’s impossible to get by on $1200 (or equivalent) per month. Many people here have very high spending habits. We also weren’t believed when we said we lived on 1500 euros after rent was deducted.
I haven’t built myself yet; we are still in the planning stage. Our house will be much larger and without any DIY work (except for the garden).
But here’s some advice I can give you:
Keep a household budget for a few months. You can even do this retrospectively for the past months by checking your online banking transactions. Just look honestly at what you really spent without subtracting anything! For example, don’t say, “I bought a car; I’ll deduct that,” because you will likely need to buy several cars over the next 35 years. Look at what remains. Only then can you accurately determine your needs. The excuse “we will be more frugal in the future” doesn’t count.
At the same time, you won’t have to accept being told it’s impossible to get by on $1200 (or equivalent) per month. Many people here have very high spending habits. We also weren’t believed when we said we lived on 1500 euros after rent was deducted.
... whatever that may mean. So far, I haven’t seen any precast concrete ceiling elements in "standard sizes," since everything is usually custom-made, but you have to have some explanation.
On the topic—and the original question: At the time, we requested quotes from several general contractors (GCs) for a house with basically the same design. By this, I mean the basic layout, number and type of floors/windows/stairs/bathrooms, flooring, painting work, roof style, etc. These were three solid construction builders and one timber frame builder, all relatively regional and small-scale, each building between 20 and 50 houses per year. Our impression regarding the quality offered—in both advice and construction—was quite similar and basically convincing across the board. The first quotes showed a substantial difference of around 100,000 EUR between the solid houses and the timber house. With some negotiation, this gap could be reduced to about 90,000 EUR, but by that point it was clear that timber prefabricated houses (in this case a KfW-55 house) are not just a little but significantly more expensive than their solid counterparts. For more energy-efficient houses, this difference becomes somewhat less, but essentially it remains.
In our specific case, this may have been due to our choice of a brick veneer façade, which in timber frame construction has to be almost entirely paid for separately, without any cost savings in the structural work or insulation. However, even if you subtract nearly 40,000 EUR for this from the total, a large difference remains, and bricks are not free on solid houses either.
Long story short: At least for custom-designed houses, I clearly see the price advantage with solid construction. It might look different for true catalog homes.
Best regards
K1300S
On the topic—and the original question: At the time, we requested quotes from several general contractors (GCs) for a house with basically the same design. By this, I mean the basic layout, number and type of floors/windows/stairs/bathrooms, flooring, painting work, roof style, etc. These were three solid construction builders and one timber frame builder, all relatively regional and small-scale, each building between 20 and 50 houses per year. Our impression regarding the quality offered—in both advice and construction—was quite similar and basically convincing across the board. The first quotes showed a substantial difference of around 100,000 EUR between the solid houses and the timber house. With some negotiation, this gap could be reduced to about 90,000 EUR, but by that point it was clear that timber prefabricated houses (in this case a KfW-55 house) are not just a little but significantly more expensive than their solid counterparts. For more energy-efficient houses, this difference becomes somewhat less, but essentially it remains.
In our specific case, this may have been due to our choice of a brick veneer façade, which in timber frame construction has to be almost entirely paid for separately, without any cost savings in the structural work or insulation. However, even if you subtract nearly 40,000 EUR for this from the total, a large difference remains, and bricks are not free on solid houses either.
Long story short: At least for custom-designed houses, I clearly see the price advantage with solid construction. It might look different for true catalog homes.
Best regards
K1300S
P
phil1234527 May 2020 10:42Fummelbrett! schrieb:
... just under 2,000 euros/m² (square meter) ...Sorry for shortening your quote like this, but I see this figure mentioned quite often here.
My question is: is this gross or net?
Best regards and thanks
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