ᐅ Would you choose to build your own house again or go with a developer?
Created on: 7 Dec 2021 16:19
N
NeuerBauherrHE
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.
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.
NeuerBauherrHE schrieb:
These costs were estimated far too low.By Nubbel, by the Holy Spirit, or who actually planned and estimated the costs?https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
B
Bertram1007 Dec 2021 21:01I bought a house from a developer and just one year after the handover, I’m experiencing complete burnout with the house. The developer usually provides poor after-sales service (but good salespeople before the purchase). Everything takes a long time, no one takes responsibility, and all the invoices have already been paid. For example, I still don’t have window sills 13 months after handover, but there is water leaking in three places.
Mistakes happen everywhere. It seems best to deal with companies where both parties have equal power, so you can actually get things done. You can’t expect that as a, well, how should I put it, “customer” of a developer.
On the plus side, you do have peace and quiet during the construction phase.
Mistakes happen everywhere. It seems best to deal with companies where both parties have equal power, so you can actually get things done. You can’t expect that as a, well, how should I put it, “customer” of a developer.
On the plus side, you do have peace and quiet during the construction phase.
I would personally only build with an architect and direct contracting. Possibly with a general contractor if I know them well personally or through family or friends.
However, I would recommend many to go with a developer, but I would give them a lot of advice to keep in mind.
Most likely, I would recommend buying an older existing house without a backlog of necessary renovations, which would definitely require hiring a good expert for inspection before purchase.
However, I would recommend many to go with a developer, but I would give them a lot of advice to keep in mind.
Most likely, I would recommend buying an older existing house without a backlog of necessary renovations, which would definitely require hiring a good expert for inspection before purchase.
We did everything ourselves (with the support of a construction supervisor who advised us on some matters, had contacts with reliable companies, and also coordinated them). We would definitely do it that way again. This way, you have direct control over what’s happening.
I do not want to design a house and then have someone else manage the construction, have to ask permission to visit the site, and not even be allowed to intervene directly when visible mistakes occur. In the worst case, I would just have to watch it go wrong.
I do not want to design a house and then have someone else manage the construction, have to ask permission to visit the site, and not even be allowed to intervene directly when visible mistakes occur. In the worst case, I would just have to watch it go wrong.
N
NeuerBauherrHE7 Dec 2021 21:46RotorMotor schrieb:
Could you please explain in more detail where the 40k€ or 80-90k€ figures come from?
Sure, earthworks can quickly become more expensive, but that much?
The utility connections come from the city, so there shouldn’t be any surprises. We have a sloped site. The street is 2m (6.5 feet) lower, so our basement is at street level.
The general contractor (GC) initially estimated the earthworks at 20k€. In the end, including disposal and backfilling, it cost 57k€.
The electricity and water connections now cost 16k€. The estimate was 8k€.
It actually doesn’t matter where the additional costs come from.
They just keep increasing.
There is hardly any information or reviews about small GCs. Even with big providers, there are good and bad experiences. That doesn’t help.
It’s not comparable to buying a car!
Numbers found online aren’t useful because they only reflect standard cases without a slope.
We are laypeople and expect a GC to be able to provide an accurate calculation since they build 30 to 50 houses a year.
We have a 200sqm (2150 sqft) plot and are building a 150sqm (1600 sqft) semi-detached house (6m × 12m, 20ft × 39ft).
We are generally satisfied with the construction itself, but the surrounding issues and just handing over money is becoming exhausting. Right now, I hardly have any sense of what the final costs will be. That frustrates me.
We are in our early 30s with small children and found the location and timing perfect rather than waiting another five years.
Maybe in a few years I’ll be able to laugh about it.
Pinkiponk schrieb:
I would no longer build new but buy an existing house and then renovate or refurbish it.I would never buy an existing property to refurbish it. At most, for demolition and rebuilding. With new construction, you have all the cards in your hands.
Similar topics