ᐅ Would you choose to build your own house again or go with a developer?

Hello everyone,

Due to an early inheritance, we were able to buy a plot of land in Frankfurt relatively cheaply for €140,000 (about $150,000). Our general contractor (GC) estimated the house construction costs at €450,000 (about $485,000) back in 2020. With some contingency, we arranged the financing based on that.

Now that the shell construction phase has started, we are already €40,000 (about $43,000) over the original estimate. Given current prices, the additional costs will likely be around €80,000 to €90,000 (about $86,000 to $97,000), especially after adding the landscaping and utility connections (electricity, water). We will probably have to apply for additional financing. Unfortunately, none of our acquaintances have built with a GC; they only know about building from property developers.

The total cost of the house build will then be around €700,000 (about $755,000). Our own funds were €200,000 (about $215,000).

I know that building here in Frankfurt is relatively affordable since new builds generally start at €1 million (about $1.08 million), but our initial mortgage repayment was planned at €1,300 (about $1,400) and after additional financing it would increase to €1,800 (about $1,940).

With a net household income of €4,000 (about $4,320), this is pushing our limits, especially since my wife is not a civil servant and does not have a secure public-sector job.

I keep wondering if the house build is really worth it, considering that with the mortgage payments I could live comfortably in a larger apartment without being tied down? Plus, the whole stress with the building authority, construction supervision, neighbors, and utility providers, which has forced us to make many compromises during planning.

We actually hired the GC to organize everything, but in the end, we are still the main contact for soil surveys, unexploded ordnance investigations, utility connections, road closures, and even porta-potty arrangements.

Ideally, I would like to sell the house in three years, start over, and buy directly from a property developer. I really have no desire to deal with the stress of being a builder anymore.

I would no longer build new but buy an existing house and then renovate or refurbish it.

Are you sure you are building with a general contractor (GC) and not with an architect or similar?
With a GC, you usually get a full-service package except for the land.
Of course, price increases can still occur due to additions from special requests, but if the budget is tight, you simply leave those out.

How can the shell construction already become €40,000 (about $43,000) more expensive with a GC?

I haven’t built myself, but I have carried out an extensive renovation independently. It was stressful, perhaps even more so than building with a general contractor. To answer your main question: I would do it again.

I think your problem is the long time delay: planning in 2020, construction in 2021/22 combined with the extreme price increases that can’t be fully compensated by your salary.

If you had bought directly from the developer, it would have been just as expensive. The asking prices would have deterred you in 2020, and even more so in 2022. They have to factor in all costs as well. And even with a developer, you still have to deal with a lot and make compromises—just like with a renovation or living in a rented apartment or house.

Once you’re finished, you’ll probably be able to relax a bit more again. Don’t worry too much.

RotorMotor schrieb:

Are you sure you are building with a general contractor (GC) and not an architect or something similar?
With a GC, you usually get an all-in-one package except for the land.
Of course, additional customizations can still cause price increases, but if the budget is tight, you simply leave those out.

How can the shell construction already be €40,000 (about $43,000) more expensive with a GC?

The GC only provides a fixed price for the house itself.
Additional construction costs like earthworks, landscaping, and utility connections are no longer the GC’s responsibility. These costs were initially estimated far too low.

I can understand you, because ultimately, after building a house, the quality of life should be better than before.
Still, I don’t believe you can’t handle this topic alone, whether with a general contractor (GC) or by managing the project yourself. We used to have a house, and eventually, everything was finished (considerably more expensive, especially due to our own extras), but then it felt good. Later in life, I sometimes rented, but what I didn’t like was that landlords or property managers often showed little interest in maintaining or improving quality, even when we offered to cover the costs. I missed the freedom to do what I wanted in my own place.
But that comes at the price of owning your own property (preferably a detached house); that, in turn, brings you to the decision whether to hire a GC, a property developer, or to manage the build yourself.
Good preparation, awareness of your own priorities and needs, and a bit of luck can significantly influence the project.
We had to decide quite quickly, and after two houses we had reserved were sold to others at the start of the pandemic, we decided to build ourselves. We were supposedly careful but only within the limited options available due to time pressure, spatial restrictions, and fully booked providers.
In the end, we built with a small GC, which is often seen as a good choice; however, it turned out to be a complete disaster. My self-managed build many years ago was a breeze in comparison—or my memory might be playing tricks on me.
What I mean to say is: the kind of security you want probably doesn’t exist here; it’s probably a case of “no risk, no fun.”
I have an acquaintance in Sweden who is already fed up just having to occasionally take care of maintenance around his house. He has (hopefully) learned that he never wants to own a property again—that’s at least what he says now 😀
I think you should look within yourself to find which option suits you best and which stresses you want to avoid. Whether a GC or self-management is less important to me.
“If someone is a fool, it doesn’t matter where they come from,” a former boss of mine used to say.
As always, it’s a case-by-case decision, and for each project, one way or the other might be better for you. I know terrible stories about property developers, I can tell you an unpleasant one about a GC, and I also know horror stories about existing houses. There’s no general right or wrong.
It’s like a partnership—the right partner for you can make life beautiful and easy. For someone else, that partner wouldn’t fit at all.