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.
A
Alessandro8 Dec 2021 11:33The best general contractors are usually the smaller ones who still have Copyright 2009 on their homepage anyway 😉 :p
After seeing once again a massive serving of “myths in bags” on the topic of “where can I get everything from a single source, or at least the regulars know each other well enough for successful teamwork,” I want to clarify some fundamental points:
General contractors (GCs) for site-built houses (whether masonry or timber construction) are basically masons and concrete workers or carpenters, and due to trade regulations, they cannot avoid working with subcontractors for certain trades. The GCs operating under big brand names are usually small rather than medium-sized. Only very large GCs with several hundred technical employees actually cover—or nearly cover—the entire range of trades, including finishing trades.
GCs for largely prefabricated houses typically have a fixed core team for factory work and assembly and know their subcontractors well only within the vicinity of their production site. Subcontractors rarely travel across regions and are therefore not permanent team members at distant job sites. An exception is those “manufacturers” who, let’s say, tender their subcontracting services “Europe-wide.”
Architects and GCs—if both are located near the building site—do not differ in how well they know their regular subcontractors and, accordingly, how well their teams work together. When awarding contracts individually, one must distinguish between owner self-award (usually with fully approved plans shared by email) and architect-led individual award (after proper bidding). You don’t end up with a GC only because you consciously select GCs—you can also get them responding to a general tender!
Not only that, but also depending on the nature of the building: a mid-terrace house—unless it is an existing property—is best obtained as a developer project. The same applies to house types like semi-detached or terraced houses, where the best choice is a developer and the second best is a joint planner. Only for a newly built detached house are all approaches equally suitable based on the house type, and then the deciding factor is the “type” of homeowner and which path suits them best. Again, for a mid-terrace house: choose an architect (possibly with a GC) if you enjoy custom selections, and a GC without an architect if you see custom selections as a burden. The idea that a GC is always the best choice for existing properties only holds if you are willing to be cheap and lazy about skipping the “measurement of the existing building.”
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
General contractors (GCs) for site-built houses (whether masonry or timber construction) are basically masons and concrete workers or carpenters, and due to trade regulations, they cannot avoid working with subcontractors for certain trades. The GCs operating under big brand names are usually small rather than medium-sized. Only very large GCs with several hundred technical employees actually cover—or nearly cover—the entire range of trades, including finishing trades.
GCs for largely prefabricated houses typically have a fixed core team for factory work and assembly and know their subcontractors well only within the vicinity of their production site. Subcontractors rarely travel across regions and are therefore not permanent team members at distant job sites. An exception is those “manufacturers” who, let’s say, tender their subcontracting services “Europe-wide.”
Architects and GCs—if both are located near the building site—do not differ in how well they know their regular subcontractors and, accordingly, how well their teams work together. When awarding contracts individually, one must distinguish between owner self-award (usually with fully approved plans shared by email) and architect-led individual award (after proper bidding). You don’t end up with a GC only because you consciously select GCs—you can also get them responding to a general tender!
Tolentino schrieb:
So, within certain limits, you can make a general recommendation depending on the buyer type.
Not only that, but also depending on the nature of the building: a mid-terrace house—unless it is an existing property—is best obtained as a developer project. The same applies to house types like semi-detached or terraced houses, where the best choice is a developer and the second best is a joint planner. Only for a newly built detached house are all approaches equally suitable based on the house type, and then the deciding factor is the “type” of homeowner and which path suits them best. Again, for a mid-terrace house: choose an architect (possibly with a GC) if you enjoy custom selections, and a GC without an architect if you see custom selections as a burden. The idea that a GC is always the best choice for existing properties only holds if you are willing to be cheap and lazy about skipping the “measurement of the existing building.”
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
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