Building a house is usually the biggest investment in a person's life. It is not uncommon for the builder to be in debt for the rest of his life, because the construction costs usually exceed the limit of one hundred thousand euros. Before embarking on the project, the builder should consider whether the high cost of construction can be reduced.
Reduce construction costs
Below we would like to show you some tips on how to reduce construction costs.
Tip 1: the right choice of building plot
Construction costs can be reduced by the choice of land.
Builders who do not need a city nearby, should consider whether an inexpensive building plot in the country also serves its purpose. A plot of land, for example, in munich is very expensive, not to say unaffordable. A few kilometers to the north, in pfaffenhofen, the square meter costs significantly less.
There may be higher costs due to the longer drive, of course, but even when that is factored into the equation, a cheap lot is an investment that significantly lowers construction costs.
Tip 2: reduce construction costs with construction financing
The monthly costs for the loan also belong to the construction costs.
These are incurred monthly from the start of construction and whether the builder pays 800 or 900 euros a month makes a big difference in construction costs. Builders who take out a loan from their principal bank usually have very high construction costs. Normally, the cost of credit here is very high. In any case, the conditions should be compared with the conditions on the internet.
There are special sites that compare the different offers. Thus the prospective customer sees at first sight, which banks are favorable and which are not. However, the conditions are often dependent on creditworthiness.
So before signing a contract, it is necessary to first obtain an actual offer and compare it with the others. Not only the amount of interest is decisive for the construction costs, but also the conditions. If interest rates are very low, then it pays to agree on a longer term. If interest rates then rise, the builder continues to receive the lower interest rate.
The repayment is always composed of interest and amortization. If a low repayment is chosen (for example 1%), the construction costs are lower in the beginning. Of course, the repayment takes correspondingly longer. If the loan agreement stipulates a high interim repayment, the builder remains flexible with the construction costs. Whenever there is money, he can use it for repayment.
Such special agreements usually affect the amount of the construction interest, but often outweigh the advantages. When taking out a loan, the low-interest loan from the kreditanstalt fur wiederaufbau (kfw) should also be taken into account.
Tip 3: save construction costs when designing the house
Opinions differ on the question of whether the house should be built with or without a cellar.
The fact is that a good basement costs around 80 000 euros. The alternative is a floor slab, which reduces construction costs. The argument, that in a cellar the heating technology must be accommodated, is no longer valid in the today's time. The technology can be housed just as well in a room on the first floor or in the roof.
The decision for or against a cellar should not make itself the owner too easily, because this cannot be changed later any more. Although construction costs are reduced by around 20 %, the loss in value of a house without a cellar is higher. In the event of a later resale, this can be decisive.
Tip 4: planning for the future
When planning a house, it makes sense to think about the future.
Later conversions are usually more expensive than if sensible facilities are included in the planning immediately. Especially in view of the age it is expedient to invest a little more money. This pays off in the long run. Entrances can be designed without steps and a large bathroom is a joy not only in old age.
The expense is not particularly large when building a house and the builder is prepared for all life situations.
Tip 5: help with the extension of the house
Some houses are offered as so-called extension houses.
This is what construction experts mean by a house that is only completed to the shell stage. The builder takes care of the finishing himself. These houses are usually very favorable.
A development house is to be recommended however only for owners, who can organize either well or have a pronounced handicraft skill. All others should plan the house as turnkey as possible, with the option of doing some work themselves. If you are considering whether to build a finishing house or turnkey, we recommend this article.
The builder can either help with the construction of the house or carry out individual points under his own direction.
Can be done yourself, depending on craftsmanship and time:
- The laying of floors
- The painting of the walls
- Simple plastering
- The installation of ceilings
Certain work belongs in the hands of professionals and may not be done by the builder, unless he is a professional. This includes, for example, all electrical work or the installation of the heating system.
Care should be taken that the builder does not take on too much. An accident can happen quickly, and those who suffer severe injuries due to construction, quickly lose interest in their home. With a finishing house, the builder does not have to do everything himself, but he does have to organize the craftsmen and that can cost a lot of nerves.