ᐅ Would you choose to build your own house again or go with a developer?
Created on: 7 Dec 2021 16:19
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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.
But back to the original poster, I spent many days working on the construction site, from Friday to Sunday, from 7 AM to 11 PM, working non-stop. From the trench heat exchanger to the shell construction and roofing.
We built relatively large, about 260 m² (2800 ft²) of living space.
During the interior finishing, I got completely exhausted and had to take a two-week break.
Then I went to Austria for a week to recharge.
After that, I hired a Ukrainian and a Moldovan worker and spent six weeks focusing only on material procurement and overseeing the other trades.
Visiting the site three times a day, having some coffee, discussing progress, and making calls.
Afterward, we pushed forward energetically again, and in the end, the project was completed successfully.
So keep your spirits up, weigh your options, and take breaks now and then.
That helps.
We built relatively large, about 260 m² (2800 ft²) of living space.
During the interior finishing, I got completely exhausted and had to take a two-week break.
Then I went to Austria for a week to recharge.
After that, I hired a Ukrainian and a Moldovan worker and spent six weeks focusing only on material procurement and overseeing the other trades.
Visiting the site three times a day, having some coffee, discussing progress, and making calls.
Afterward, we pushed forward energetically again, and in the end, the project was completed successfully.
So keep your spirits up, weigh your options, and take breaks now and then.
That helps.
TmMike_2 schrieb:
I would never buy an existing building to renovate. Only if it’s for demolition and rebuilding.
With a new build, you have complete control. Haha, looks like someone hasn’t read the butcher shop thread 😎
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
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hampshire8 Dec 2021 00:39I am already interested in starting another project and would like to work with an architect again while managing the contractors myself. Planning and building our house was a great experience. As a couple, we went on many trips to select suppliers and gather ideas, which was enjoyable. We are happy with the result, although there are a few small things we would do differently today. Maybe the next property will be a renovation project. I have long dreamed of building new, while my wife preferred to renovate an existing building. We often browse listings looking for chateau ruins in France. We are not very risk-averse and accept the consequences of our actions or inactions as they come. And who really knows what will happen.
I would build again with our general contractor.
Well, yes, the costs were ridiculously low.
You can find costs for building on a sloped site here and hidden across the web.
Pump the brakes and see where you can still save. There will be more expenses to come. Almost all homebuilders reach that point.
Well, yes, the costs were ridiculously low.
You can find costs for building on a sloped site here and hidden across the web.
Pump the brakes and see where you can still save. There will be more expenses to come. Almost all homebuilders reach that point.
H
HilfeHilfe8 Dec 2021 05:37NeuerBauherrHE schrieb:
Hello everyone,
Due to an early inheritance, we were able to purchase a plot of land in Frankfurt quite cheaply for €140,000. Our general contractor estimated the house construction costs at €450,000 in 2020. With some buffer, we based our financing on that.
Now the shell construction phase has started, and we are already €40,000 over the estimated costs. Given the current prices, the extra costs will probably end up being €80,000 to €90,000, especially once the exterior landscaping and utility connections (electricity/water) are included. We will have to apply for additional financing then. Unfortunately, none of our acquaintances have experience with general contractors—only with developers.
The house will cost us about €700,000 in total. Our own equity was €200,000.
I know it is relatively affordable considering building in Frankfurt, where new homes start at around €1 million, but our initial repayment rate was €1,300 per month, and after additional financing it will rise to around €1,800.
With a household net income of €4,000, we are slowly reaching our limits—especially since my wife is not a tenured civil servant.
Now I keep wondering if this house build is really worth it, since with the repayment amount I could live comfortably in a larger apartment without being tied down?
Plus, all the stress with the building authority, building inspection, neighbors, and utility providers, which forced us to make many compromises during the planning phase.
We actually hired the general contractor to organize everything, but in the end, we are still the main contact person (soil survey, ordnance survey, utility connections, road closures, portable toilet).
Ideally, I would like to sell the house in 3 years, start fresh, and buy directly from a developer. I really don’t want to deal with building-related stress anymore. For you, it is only affordable because the land price in Frankfurt is quite low. The building shell is priced in line with the region’s new constructions.
Otherwise, we bought a turnkey house and were still able to make changes during the construction phase—some of which were cost-neutral.
However, back then there were no such price surges.
We are currently finishing the foundation slab. Since I am a risk-averse person, I would always choose to build with a general contractor. This gives me price certainty, and if I select all the materials and finishes before the start of construction, I have a good understanding of my costs. This way, there are no major surprises. I really wouldn’t have the patience or the time, due to work commitments, to deal with the individual trades myself...