This is how you calculate the real estate construction correctly
The basis for sound real estate financing is a correct and absolutely honest calculation of your financial scope. We therefore recommend that you clearly contrast your monthly income and expenditure. The prerequisite for not financially assuming the later financing is your honesty towards yourself:
Have you considered all current (budgetary) costs? Can you carry the monthly burden permanently?
As a basic rule for sound real estate financing, the monthly rate should not exceed 30 to 50 percent of your net income. The basic requirement for real estate financing is regular income. The awarding of a loan depends, in addition to the value of the property, on your proven creditworthiness: Most of our financing partners require the granting of a loan, e.g. to a single person, a proven, monthly minimum net income of € 1,500.
You have to expect these additional costs
Be sure to inform yourself before the house construction about the incidental costs, because these add up to the agreed purchase price of the property and the construction costs. Please note: the amount of incidental purchase costs depends on the purchase price. Therefore, the more expensive the land, the higher the purchase costs.
Since many different service providers are involved in building a house, you should not only consider the actual construction costs, but also plan the expenses for the architect and structural engineer as well as for the authorities and insurance companies. Likewise, a suitable property wants to be found and bought.
Do you intend to buy your property through a broker? Then the brokerage commission must be taken into consideration.
Insurance protection for new construction
When new construction projects are carried out, areas that are often open to the public are adversely affected, or there is a risk to third parties in some other form. Caution should be exercised in such situations, as each owner bears the responsibility and liability for ensuring that there are no hazards to third parties from his or her construction site.
Here are some insurance policies that can be recommended for you to build a new home in order to be prepared in case of need.
Builders liability insurance:
The owner's liability insurance compensates claims for damages against the owner. In case of damage, this insurance regulates the financial claims for damages on the construction site of injured passers-by or residents.
A policy usually costs about one thousandth of the construction sum with a measure of 50,000 euros, that is about 50 euros and protects for the period of construction activity. Make sure that the sum insured amounts to at least three million euros for personal injury.
Construction aid accident insurance：
Everybody knows the situation: neighbours, friends and acquaintances often support the renovation after work. In this situation, the construction workers' accident insurance can be worth gold. Auxiliary workers, whether paid or not, are legally insured against accidents by the Construction Trade Association. However, the client himself is fully liable for recourse in the event of an emergency. He can secure himself financially with a private construction worker accident insurance. The benefits of the insurance cover lifelong pension payments and / or one-off compensation in the event of death or disability. Accident insurance is already available for a single amount of 200 to 300 euros.
Works insurance:
From a statistical point of view, every second building site will result in a major loss with possible damage to the building or the building material. Since even the most prudent client cannot rule out many dangers, we recommend a building services insurance. This covers damage caused by craftsmen, wanton destruction as well as damage by theft or storm. The insurance cover usually covers the entire construction period (maximum 24 months) and insures all building materials, construction works and components against unforeseen damage. The insurance companies charge a one-off premium for the policy, which corresponds to about one tenth of the construction cost.
Important points in the building contract
One of the most important components of the construction project is the building contract itself, as it sets the course for the later course of the construction.
In order to avoid costly consequences, make sure that you make the right formulations when drawing up the work contract, as even a missing agreement can be expensive.
Prerequisite for the construction of a home is a building-ready property. Get informed before buying, not only about the location and the price of the property, but also about the property itself.