When it comes to the dream house, most people have exact ideas. But how do you turn the dream of a home into reality? We explain in 5 steps how to properly plan your construction project and how to avoid cost traps from the calculation of the construction costs, through the financing, to the acceptance.
5 steps to the dream house:
1- House construction Calculate costs
1.1 Costs for the house
1.2 Plot costs
1.3 Additional costs
2- Check construction financing
2.1 Use financial calculator
2.2 Compare mortgage lending
2.3 Development of construction interest
3- Buy land
3.1 First plot then house.
3.2 Find the plot
3.3 Check land prices
4- Buy house
4.1 Find house types
4.2 Select construction method
4.3 Prefabricated house or extension house?
5- Build a house
5.1 Planning house construction
5.2 Construction phase
5.3 Acceptance and purchase
1. Calculate house construction costs
The first step to owning your own home is always to capture your personal ideas. Of course, the costs must be taken into account. Only when it is known what kind of house to build and how high the financing requirement, you can go to the home loan.
Cost of the house
The exact shape and appearance of the house do not have to be defined exactly. Above all, it is important to limit the financial scope of the construction project. You should definitely consider how much space is needed. It should be planned future-proof. Anyone who wants children should include the necessary living space directly in the planning.
It is also necessary to clarify whether a cellar is needed or whether a base plate is sufficient. A cellar offers a lot of additional space for relatively little extra cost, but can not always be used wisely. Many builders want a larger garden, for others, the grounds are less important. Is a balcony or a covered porch desired? Is a garage needed, or maybe a carport? There are many questions that need to be answered.
Of course, a suitable plot of land is required for the house to be built. If you know exactly how much space the house requires, you can search more specifically for the right building site. It is worth taking a look at the land costs in the region. In addition to the house itself, the land accounts for the largest part of the total costs. Careful planning is therefore important.
With the costs one should also pay attention to the location of the property. It must be decided how important the proximity to the city is. If you live in a suburb, you may have to commute to work every day, which takes a lot of time. Also, the condition of the property should be considered. Many properties are cheap at first, but first have to be made accessible and developed.
The additional costs are often forgotten in the calculation of the house construction costs, but account for a large part of the total costs. All construction phases incur additional costs that are invisible at first glance. There is therefore a risk of underestimating the required amount of credit. If you want to be on the safe side, you should always make reserves when building a house. It is particularly important to choose a home provider that offers a construction guarantee and insurance packages!
2. Check construction financing
If the framework of the construction project is known, one can start looking after the financing. When advising with potential lenders, it is important to know the current interest rates and the offers of other banks.
Use financial calculator
To get an overview of the credit line, a financial calculator can be helpful. In most cases, you only have to know the house price, the cost of the land and the additional costs. After checking your existing equity and determining the term, the calculator returns non-binding interest rates. A finance calculator is the easiest way to get an initial overview of mortgage lending.
Compare mortgage lending
Since many Internet portals for mortgage lending exist, it is possible for the builders without much effort to compare different providers. However, caution is advised. Many offers are attractive at first glance, but have hidden disadvantages in the fine print. If you want to protect yourself, you should acquire a basic knowledge on the subject of house financing. In addition, of course, the classic consultation with the bank is an option. Here it is important to choose a trustworthy loan partner.
Development of construction interest
Credit periods of more than ten years are the norm when financing a home. The currently favorable construction rates quickly lead one to regard the future development of interest rates as too positive. Of course, it is not wrong to want to benefit from the low interest rates, but you should make sure that the interest rate on the financing as long as possible. After a few years, follow-up financing is required. Here the conditions are often completely renegotiated. One should take care of the follow-up financing in good time and pay off large amounts as soon as possible.
3. Buy land
Once you have determined how much house you can afford, you can move on to the next phase of building a house. Of course, every builder needs a suitable plot. For many people, this is one of the biggest investments in life, so thought should be taken accordingly.
First plot then house
In general: If you want to build as uncomplicated as possible and secure the best conditions, you should finance the land and the house together. The builder has only one obligation to a single bank and can pay off his debts on a monthly basis at a common rate. However, it is no secret that property prices in Germany have risen sharply in recent years. Those who consider buying land and house separately should know very well what the proposed house looks like. With already existing land one has little room for maneuvering the house.
Find a plot
In Germany, there is a fairly large demand for building plots. It is therefore necessary to patiently approach the site search. The first point of contact for building plots are of course the many construction portals on the Internet. Here you can search the entire range of properties in the region without much effort. However, if you really want to find the cheapest property should consider other sources. Especially at city, community, or local banks you can often find real bargains. Alternatively, you can also rely on a real estate agent, but also wants to be paid and requires a brokerage commission.
Check land prices
Is the required price for a plot justified? A question that is not always easy to answer. There are various procedures for determining the fair price of a property. The most common method is the so-called benchmark method, which compares the price of a piece of land with other prices in the immediate area. One should also pay attention to hidden costs. The condition of a property has a big impact on the additional costs. It is important to estimate whether later straightening, tree felling or other earthworks are necessary.
4. Find house
In addition to the nature of the house, one should especially think about the construction. In addition, there are interesting opportunities for builders who want to help with the construction.
Find a house type
There are many types of houses. From the ground floor bungalow, over the spacious city villa to the classic family home. Above all, it is important to find the right type of house for your own needs. If you want to live on a central living level and refrain from climbing stairs, a bungalow is the best choice. A two-storey house offers the possibility to accommodate all bedrooms upstairs. On the ground floor there will be enough living space for an integrated living and dining room. Some house types are more expensive than others, but there are all house types in different price ranges.
Select construction method
The design decides not only about the price, but also about the later living comfort, as well as the resale value. The two most popular construction methods are the classic solid house, as well as the prefabricated house. Solid houses are built in a classical stone-on-stone fashion, with prefabricated houses consisting of prefabricated parts assembled at the construction site. Solid houses are generally more expensive, have a better thermal insulation and get their value over a long time. Above all, prefabricated houses have the advantage of bringing much lower prices and a shorter construction period.
Turnkey or expansion house?
An easy way to save money while building a house is to help yourself with the work. The so-called own contribution replaces missing equity and ensures that you can afford more house. Manual skills and a certain organizational talent are of course required. Most home providers offer different levels of expansion. The most popular is the expansion house, in which only the interior has to be taken over. Those who do not want to participate directly in construction should build a turnkey house. Here all services are taken over by a provider.
5. Build house
Property and house are found, now you can finally go to the actual house construction. If you choose a trustworthy property developer, you do not have to worry too much, but there are a few things to look out for during the construction phase.
Planning house construction
So that the house construction can proceed without delay, one should make sure that the property is developed and access ways exist. Above all, the construction company needs water and building electricity. The corresponding connections must therefore be present. In addition, you should take out insurance to protect yourself from the risks. A builder's liability insurance is standard. If you want to use the help of construction workers, you have to take out a construction assistant insurance.
The actual construction phase essentially consists of three stages. After the exact dimensions of the house have been determined in the planning phase and the necessary inquiries have been submitted to the local authorities, the shell construction phase can begin. Here, the client is involved in most cases only passively, but you should monitor the progress of the work. Furthermore, one should demand that the developer provides a contact person who can be reached in case of ambiguity. The interior makes the house finally habitable. Here, the client has the opportunity to contribute own contribution.
Acceptance and purchase
After the construction work has been completed, it has almost reached the end of the house building. However, before you can finally move into your new home, a final check is due. During the construction inspection, the interior and exterior surfaces are inspected. So should be clarified whether structural defects exist and may need to be improved. In addition, the local authority must confirm that the house was built according to the building permit regulations.