ᐅ What tasks need to be completed before signing the shell construction contract?
Created on: 5 Sep 2017 08:09
Z
Zaba12
Hello everyone,
From a financial planning perspective, I’ve been giving some thought to a few things and would like to hear your opinions.
Basic information:
1. The plot of land from the municipality (fully serviced) is financed and will be paid off by the end of the year. The municipality still needs to complete the servicing and carry out the land survey (paid by the municipality).
2. The architect has completed the design planning.
3. The initial phase is planned as an extended shell construction (i.e., groundwork, drainage, shell construction, roof).
4. After that, known contractors will handle the interior finishing.
Items 1-2 will be paid out of pocket. Items 3-4 will be covered by the house financing, which should be finalized at the beginning of January. Logically, there are a few items between steps 2 and 3.
In my view, the following points are those that would make the house financing ready for disbursement (so that the shell builder can start construction). I hope my assumptions are correct, since without house financing ready for disbursement, the shell construction cannot even begin ;-) .
- Building survey, 1000€
- Building permit via exemption, 1000€
- Additional payment for floor area, 300€
- Second notary fees (new land registry fees due to house financing), 2500€ (essential for the loan in my opinion, because without land registration for the financing bank, there is no money)
- Builder’s liability insurance, paid
- Construction all-risk insurance / builders’ risk insurance, 400€
- Soil report, 1000€
- Energy consultation (probably not the full amount in the first step), 3500€
- Provision of construction electricity/water, 700€
Based on my estimate, I would be looking at around 10,000–11,000€ to pay out of pocket before the next invoices can be paid through the house financing, is that correct?
Are there any points missing, or are my estimates too low?
From a financial planning perspective, I’ve been giving some thought to a few things and would like to hear your opinions.
Basic information:
1. The plot of land from the municipality (fully serviced) is financed and will be paid off by the end of the year. The municipality still needs to complete the servicing and carry out the land survey (paid by the municipality).
2. The architect has completed the design planning.
3. The initial phase is planned as an extended shell construction (i.e., groundwork, drainage, shell construction, roof).
4. After that, known contractors will handle the interior finishing.
Items 1-2 will be paid out of pocket. Items 3-4 will be covered by the house financing, which should be finalized at the beginning of January. Logically, there are a few items between steps 2 and 3.
In my view, the following points are those that would make the house financing ready for disbursement (so that the shell builder can start construction). I hope my assumptions are correct, since without house financing ready for disbursement, the shell construction cannot even begin ;-) .
- Building survey, 1000€
- Building permit via exemption, 1000€
- Additional payment for floor area, 300€
- Second notary fees (new land registry fees due to house financing), 2500€ (essential for the loan in my opinion, because without land registration for the financing bank, there is no money)
- Builder’s liability insurance, paid
- Construction all-risk insurance / builders’ risk insurance, 400€
- Soil report, 1000€
- Energy consultation (probably not the full amount in the first step), 3500€
- Provision of construction electricity/water, 700€
Based on my estimate, I would be looking at around 10,000–11,000€ to pay out of pocket before the next invoices can be paid through the house financing, is that correct?
Are there any points missing, or are my estimates too low?
No, I haven’t yet. However, the €105,000 (approximately $115,000) does not include any additional purchase costs or other extras. So, everything is value-enhancing. The plot of land is the largest item and is probably worth even more now than at the time of contract signing in February.
I will make first contact with my financial advisor at the end of October to roughly plan the financing, then I will know more.
I will make first contact with my financial advisor at the end of October to roughly plan the financing, then I will know more.