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.
In areas with such low land values, I would look for existing properties and then renovate. Existing houses are often practically given away there. It should be significantly cheaper than a complete new build. With that income, having a monthly payment of over €500 already requires a considerable stretch.
Using an existing property is not an option. It would be better to save money and postpone the project. However, we are currently paying a base rent of 600 € (about 650 USD) and, despite several recent car repairs, we are managing well. We are very frugal but have not been employed long enough to have saved up much equity. Nevertheless, we have secure jobs.
With financing over 100%, the monthly payment is probably around €1200, plus additional costs of roughly €300, so you're already looking at about €1500 per month just for the house. It’s doable, but is that what you really want?
A €300,000 (approx. 330,000 dollars) plot of land and a small house, with government assistance, is possible... but it also means a pretty high monthly financial burden.
A €300,000 (approx. 330,000 dollars) plot of land and a small house, with government assistance, is possible... but it also means a pretty high monthly financial burden.
As mentioned, we are aware of the risks and will receive more detailed calculations next week. Speculations don’t help us much; we prefer accurate experiences – no offense intended.
And please don’t focus solely on the financing, but also on our "conflict" between a solid construction house and a prefabricated home. We also need experiences in this area, as we are still completely uncertain.
And please don’t focus solely on the financing, but also on our "conflict" between a solid construction house and a prefabricated home. We also need experiences in this area, as we are still completely uncertain.
M
Matthew0313 May 2020 13:48Cary2020 schrieb:
We clearly see major advantages of prefab houses in terms of price (is that really the case?)And "clearly," if someone still asks whether that’s true?
Please take your time to read through the forum carefully… take your time… upfront: the answer to the question in parentheses is "no."
Cary2020 schrieb:
Speculation doesn’t help us much; I’d prefer precise experiences—no offense intended.
And please don’t focus only on financing, but also consider our “conflict” between solid construction and prefabricated houses.This is not speculation but a forecast. Experiences help little, or what use is the information if someone says, “Yes, we also built for €300,000 (about $320,000)” or “No way, we already paid €400,000 (about $425,000) for a 120 m² (1300 sq ft) house without land.” The topic is so diverse and complex that your question is far too vague to be addressed based on one experience.Solid construction and (timber) prefabricated houses are often compared from the wrong perspectives. Prefabricated houses are usually more expensive given the same requirements. With your budget, primarily a standard floor plan from the major general contractors is feasible—basically an off-the-shelf house. You can visit a nearby model home exhibition to take a look around.