Hello home builders,
We (27 and 28) are considering building a single-family house. We originally wanted a new condominium, but realistically, that’s not an option due to prices in the city and our “pet problem” (location, layout, price, limited to the ground floor). Then, through a private offer, we came across a plot of land in a sought-after new development area (not in the city) and started thinking about it.
Of course, we feel like this is a bit overwhelming — I have been in my job for two years, and my partner a bit longer.
Our financing plan would look like this:
House €230,000 + land €50,000 + earthworks, slope stabilization, and additional costs €60,000 = at least €350,000
Current equity combined €120,000, we want to keep a €20,000 buffer, so €100,000
Loan of €250,000 with various terms (KfW, annuity loan, and a home savings contract loan which can run up to 20 years if necessary). My partner also has two ongoing home savings contracts that will bring in another €100,000 in 10 years and could be used for repayment.
Current combined income is about €5,200, both full-time, with contractual salary increases. Currently, each of us saves €1,500 per month plus €500 rent.
It actually sounds like something we could manage. Especially with the low interest rates tempting us, and at some point we want a house, that’s clear.
Point #1: Children — we currently earn almost equal amounts, so I really can’t afford to take a long leave. How have you dealt with that? Do you calculate only with one income? With the 10% special repayment option, you can pay quite a bit extra towards the monthly rate.
Point #2: What happens if we separate? My partner would have to carry the house alone. Have you contractually fixed such contingencies in advance?
Point #3: Does it make sense to design the floor plan so rooms can be partitioned later, which we don’t need right now? Or is that disproportionately expensive?
Thank you for any kind of responses and ideas!
We (27 and 28) are considering building a single-family house. We originally wanted a new condominium, but realistically, that’s not an option due to prices in the city and our “pet problem” (location, layout, price, limited to the ground floor). Then, through a private offer, we came across a plot of land in a sought-after new development area (not in the city) and started thinking about it.
Of course, we feel like this is a bit overwhelming — I have been in my job for two years, and my partner a bit longer.
Our financing plan would look like this:
House €230,000 + land €50,000 + earthworks, slope stabilization, and additional costs €60,000 = at least €350,000
Current equity combined €120,000, we want to keep a €20,000 buffer, so €100,000
Loan of €250,000 with various terms (KfW, annuity loan, and a home savings contract loan which can run up to 20 years if necessary). My partner also has two ongoing home savings contracts that will bring in another €100,000 in 10 years and could be used for repayment.
Current combined income is about €5,200, both full-time, with contractual salary increases. Currently, each of us saves €1,500 per month plus €500 rent.
It actually sounds like something we could manage. Especially with the low interest rates tempting us, and at some point we want a house, that’s clear.
Point #1: Children — we currently earn almost equal amounts, so I really can’t afford to take a long leave. How have you dealt with that? Do you calculate only with one income? With the 10% special repayment option, you can pay quite a bit extra towards the monthly rate.
Point #2: What happens if we separate? My partner would have to carry the house alone. Have you contractually fixed such contingencies in advance?
Point #3: Does it make sense to design the floor plan so rooms can be partitioned later, which we don’t need right now? Or is that disproportionately expensive?
Thank you for any kind of responses and ideas!
B
Bauabenteurer22 Jan 2015 21:38Nina132 schrieb:
We are currently torn between a (supra-)regional solid construction house provider and an architect.
Would you only build with an architect on a slope? The architect has already given us some good advice, which we are now trying to implement with our solid construction house provider. So you get the advice locally but end up purchasing elsewhere?
A solid construction house provider is not necessarily cheaper than an architect, who can also offer a fixed-price contract.
Bauabenteurer schrieb:
You get the consultation locally but buy elsewhere?
A solid construction company is not necessarily cheaper than an architect (who can also build for a fixed price).oh really?B
Bauexperte22 Jan 2015 22:44Good evening,
Best regards, Bauexperte
Bauabenteurer schrieb:When an architect builds at a fixed price, they essentially act as a general contractor and are treated the same in terms of liability. That is why most architects avoid this business model and only sell their designs.
A solid construction company is not necessarily cheaper than an architect (who can also build at a fixed price).
Best regards, Bauexperte
Well, the situation is that we are in talks with several providers, and the architect has offered us many good ideas without us even asking. He also works as a general contractor and offers a fixed price. However, he doesn’t quite meet the KfW standard of Massivhaus Mittelrhein, who also employ architects.
This architect has been building for decades on all the slopes in the Mittelrhein region and really knows his craft.
We have now had the site surveyed to understand how severe the slope is and what kind of earthworks we will actually face.
This architect has been building for decades on all the slopes in the Mittelrhein region and really knows his craft.
We have now had the site surveyed to understand how severe the slope is and what kind of earthworks we will actually face.
B
Bauabenteurer23 Jan 2015 07:29@Tichu78 Yes! You’re not seriously thinking that all the advertising effort, the show homes, and your sales advisor are included in the house price, are you?
@Nina132 Why is KfW 70 so important to you? Personally, I would lean towards a local supplier who knows the area and works with local tradespeople, just based on a feeling.
@Nina132 Why is KfW 70 so important to you? Personally, I would lean towards a local supplier who knows the area and works with local tradespeople, just based on a feeling.
Bauabenteurer schrieb:
@Tichu78 Yes! You’re not seriously suggesting that the entire advertising effort, the show homes, and your sales advisor come free with the house, are you? Why would a company give anything away for free? It’s clear that all costs are passed on to the customer. The only question is how much profit the company wants or needs to make and how efficiently it operates. That ultimately makes the difference between providers.
But what does that have to do with an architect being able to offer a fixed price? And how would that work? To cover the risk, an architect would have to quote a much higher price.
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