“What or how much does a house cost?” Cannot be answered in a general way. It depends on which materials are installed on this square meter. Thus it is a difference, for example, whether a square meter is tiled with marble or whether PVC covering is laid. The construction costs for the interior construction can thus be difficult to determine and at best indicate as a reserve margin. However, there are some parameters for the development, the additional costs of the house purchase as well as the shell construction, with which one can roughly estimate the square meter prices. Details about the subject of building costs or also hide costs, which are often forgotten in the planning, you find related articles.
Land costs by land price
The cost of the property must be taken into account for the total building costs, even if they are not directly attributable to the building costs. Depending on the region, the price of the property fluctuates and can be just as good.
Construction cost calculation
In order to roughly estimate construction costs, two calculation methods are used:
Calculation of building costs by square meter of living space
The price of the living space per square meter of living space is used for this purpose. The costs depending on the region, according to equipment as well as domestic technology. This is only a guideline, as the manufacturers are not only regionally different, but there are also a lot of different variations and possibilities in the field of fermenting.
Cost estimate cubic meters of converted space
The cost of space can also be estimated roughly according to the volume of space. Because the room height is still taken into account, this method is more reliable than the estimation by means of the living space. Rebuilt space is the total volume of the interior of a building. This includes not only the floor areas, but also the walls, including the height, the ceilings and the roof and the price, land, outside facilities, fees for site management and planning as well as other building expenses were not included in the price.
Individual factors relating to the building as well as the structure influence the price, whether it is a prefabricated house or a massive house. In the case of an architect’s house, the price is also significantly higher than in a house owned by the developer. Depending on how well accessible the site, the construction costs are different. The equipment also plays an important role in the price.
No matter which method is used for estimating the cost of a building, it is reliable only on the basis of a land survey, as well as a design for the layout of the space, including equipment requirements.
Gross estimation according to a cost table
Reduction of house construction costs
The easiest way is to reduce costs by providing self- service. Ideal for interior or garden work. Building houses without a basement or just partial basement helps to save more costs. Of own services or the deletion of individual items can always be negotiated after the offer. It is important that you have an all-encompassing and detailed offer in the calculation phase.
Here is an overview of the traps that can occur with the construction costs:
- Is not or not sufficiently taken into account
- Costs for authorities, taxes, notary
- Connection (gas, electricity), outdoor facilities
- Ancillary costs in the financing of the building or even to a narrow assessment of the mortgage financing
Every house construction is more expensive than planned before
Incalculable ancillary costs, repairs, additional work and further costs should be estimated generously in the calculation. Furthermore, it must be taken into consideration that the client does not overestimate his own performance. It is recommended that in addition to the final costs, which you can expect from the start of construction, you will be able to build up a buffer of 15-25%, because the unforeseen costs will come to you – no matter how detailed you are the house construction.
A large buffer of costs should always be invested in the financing. It would be unfavorable if no money was available in the middle of the construction phase. Financing is difficult or impossible. If an additional loan is granted, then usually to worse conditions. It is difficult if there is a gap in the financing that the client cannot close. Then the construction project stops.
This risk can be reduced if as much equity as possible is introduced. Even if interest rates are currently very favorable, one should not dare to spend too much on mortgage financing. The lower risk for the lender will make building loans more favorable as more equity (or self-employed) is available. The bank or another financial institution would like to insure that the installments can also be repaid. The more collateral and / or equity you can raise, the better the conditions of your mortgage lending will be. Experts advise at least 20 per cent of the construction costs (including incidental costs) from their own resources. In principle, a full financing, a financing without own funds, is also possible. Be aware, however, that in such a case you can provide sufficient collateral.
Risk “black sheep”
Less serious construction companies can be recognized by the following trick: Registration of bankruptcy after the builder made partial payments. The builder can write the money paid into the wind. In the meantime, a new company is founded by the responsible persons of the untrustworthy company under another name and with new managing director (friends, family members, employees, etc.). When selecting a suitable manufacturer, you should also take a look at the company’s history and, if necessary, also check the balance sheets of the construction company. A contact with previous builders who have built with this company can be helpful. The longer a company is active in the market, the better is its reputation and the more solidly it is set up. There will only be a construction site in the rarest cases,
Checklists help with the construction and performance description. This can be used to avoid or minimize unscheduled additional costs. A payment plan helps to pay the installments according to the construction progress. Such a payment plan should be agreed in the building contract. Frequently, developers and prefabricated manufacturers are also required to provide payment guarantees for the respective bank, which are not always absolutely necessary. Pay these partial amounts only if all the services agreed so far have been completed completely and without defects.
Building price index (BPI)
The construction price index (BPI), on the other hand, records the actual price level of construction projects across all federal states i.e. the price paid by an owner on average. Not only cost centers such as building materials and costs for man and machine are taken into account, but also the productivity and profit margins of the builders are taken into account.