ᐅ Build a new house or wait for an affordable home to become available?
Created on: 4 Oct 2018 23:02
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armmitcharmeA
armmitcharme4 Oct 2018 23:02Hello everyone,
Thank you very much for taking the time.
We are completely torn and looking for opinions on our situation.
My husband and I (both 27, plus our daughter who is 11 months old) are considering building a house, even though we never really wanted to, since we are quite adaptable but definitely not decisive.
To begin with: We are both still students. I will become a doctor next May. He will study for a long time yet, but already has completed vocational training and is an excellent homemaker.
Our current savings amount to €80,000 (about $86,000). We would definitely be able to get a loan since my (very financially stable) mother would act as guarantor for us.
We have been searching for almost a year for a suitable house in the beautiful village with a population of about 200 where my mother lives. Several months ago, we were offered a house there (a verbal agreement giving us a right of first refusal, but most people hardly sell their houses here anyway, so the seller can also consider themselves lucky), once the 90-year-old mother of the potential seller can no longer live alone. She is still relatively fit, walking around outside, etc.
We want to move there, specifically so that our little girl can walk to her grandmother’s without crossing a busy road, which applies both to the new development area (about 3 building plots) and to the reasonably priced house offered to us, as they are practically opposite each other.
Details of the old house:
5 rooms, approximately 120 sqm (about 1,290 sq ft) living space
Plot size 700 sqm (about 7,535 sq ft)
3 bathrooms, but one in the shed
Last plot at the edge of the forest (undevelopable, because the forest belongs to my mother)
Huge basement with a shed
Two garages
Built in the 1970s
Inspected by an expert (though somewhat superficial), very well maintained at first impression
Renovations needed, but no major refurbishment required. We estimate immediate necessary investments of around €20,000 (about $21,500)
Lovely garden with mature trees
Cost: €68,000 (about $73,000)
Details of the new development:
Mostly flat northern slope
€9 per sqm (no typo — it’s rural and the municipality supports young families. Nine euros per sqm)
Opposite the forest (undevelopable because it belongs to my mother)
Reasons to wait:
Very low costs, no loan needed
Manageable work (we are both not professionals)
Move in without huge upfront costs
We could gradually add more “luxury,” but start simply
Charm of the old house
The house is worth more than we would pay for it
Reasons against waiting:
We might end up waiting forever
One room is a walk-through
No matter what we do, it won’t be as environmentally friendly as a good new build
The house is not perfect
Reasons to build new:
It feels terrible to “take” the house away from the elderly woman
We could start planning immediately
I will have plenty of time for this over the next six months, but not after that
We could customize a lot according to our wishes
The plots are beautiful and practically a gift
We could build a passive house
Reasons against building new:
Costs are approximately €300,000 (about $323,000) if we are lucky — meaning debt
In this region, property usually never recovers its construction price
An overwhelming number of decisions
Neither of us are experts and could easily be taken advantage of
Any “luxury” must be financed upfront
“If you’re going to build, build properly?” — costs, costs, costs
Building doesn’t happen quickly
What we want:
At least 100 sqm (about 1,075 sq ft), maximum 135 sqm (about 1,450 sq ft)
At least 5 rooms (a second child is planned)
Preferably a low-energy house
2 bathrooms (one can be very small, just some backup option)
Not too much hassle
What I mean by luxury:
A tiled stove (very cozy, and since the forest is family-owned, we get wood extremely cheaply)
The infrastructure — daycare, primary school, proximity to future work, etc. — is ideal for us despite, or because of, the very rural location. But property prices in our very rural area are very low, so we don’t view the potential house as an investment but as a place to settle down. The chance of one of the approximately 10 other suitable houses in the village becoming available by chance seems very low to us.
What would you do?
What would you advise a friend?
We are completely uncertain!
Thank you very much for your help, and have a nice evening!
Anne
Thank you very much for taking the time.
We are completely torn and looking for opinions on our situation.
My husband and I (both 27, plus our daughter who is 11 months old) are considering building a house, even though we never really wanted to, since we are quite adaptable but definitely not decisive.
To begin with: We are both still students. I will become a doctor next May. He will study for a long time yet, but already has completed vocational training and is an excellent homemaker.
Our current savings amount to €80,000 (about $86,000). We would definitely be able to get a loan since my (very financially stable) mother would act as guarantor for us.
We have been searching for almost a year for a suitable house in the beautiful village with a population of about 200 where my mother lives. Several months ago, we were offered a house there (a verbal agreement giving us a right of first refusal, but most people hardly sell their houses here anyway, so the seller can also consider themselves lucky), once the 90-year-old mother of the potential seller can no longer live alone. She is still relatively fit, walking around outside, etc.
We want to move there, specifically so that our little girl can walk to her grandmother’s without crossing a busy road, which applies both to the new development area (about 3 building plots) and to the reasonably priced house offered to us, as they are practically opposite each other.
Details of the old house:
5 rooms, approximately 120 sqm (about 1,290 sq ft) living space
Plot size 700 sqm (about 7,535 sq ft)
3 bathrooms, but one in the shed
Last plot at the edge of the forest (undevelopable, because the forest belongs to my mother)
Huge basement with a shed
Two garages
Built in the 1970s
Inspected by an expert (though somewhat superficial), very well maintained at first impression
Renovations needed, but no major refurbishment required. We estimate immediate necessary investments of around €20,000 (about $21,500)
Lovely garden with mature trees
Cost: €68,000 (about $73,000)
Details of the new development:
Mostly flat northern slope
€9 per sqm (no typo — it’s rural and the municipality supports young families. Nine euros per sqm)
Opposite the forest (undevelopable because it belongs to my mother)
Reasons to wait:
Very low costs, no loan needed
Manageable work (we are both not professionals)
Move in without huge upfront costs
We could gradually add more “luxury,” but start simply
Charm of the old house
The house is worth more than we would pay for it
Reasons against waiting:
We might end up waiting forever
One room is a walk-through
No matter what we do, it won’t be as environmentally friendly as a good new build
The house is not perfect
Reasons to build new:
It feels terrible to “take” the house away from the elderly woman
We could start planning immediately
I will have plenty of time for this over the next six months, but not after that
We could customize a lot according to our wishes
The plots are beautiful and practically a gift
We could build a passive house
Reasons against building new:
Costs are approximately €300,000 (about $323,000) if we are lucky — meaning debt
In this region, property usually never recovers its construction price
An overwhelming number of decisions
Neither of us are experts and could easily be taken advantage of
Any “luxury” must be financed upfront
“If you’re going to build, build properly?” — costs, costs, costs
Building doesn’t happen quickly
What we want:
At least 100 sqm (about 1,075 sq ft), maximum 135 sqm (about 1,450 sq ft)
At least 5 rooms (a second child is planned)
Preferably a low-energy house
2 bathrooms (one can be very small, just some backup option)
Not too much hassle
What I mean by luxury:
A tiled stove (very cozy, and since the forest is family-owned, we get wood extremely cheaply)
The infrastructure — daycare, primary school, proximity to future work, etc. — is ideal for us despite, or because of, the very rural location. But property prices in our very rural area are very low, so we don’t view the potential house as an investment but as a place to settle down. The chance of one of the approximately 10 other suitable houses in the village becoming available by chance seems very low to us.
What would you do?
What would you advise a friend?
We are completely uncertain!
Thank you very much for your help, and have a nice evening!
Anne
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armmitcharme4 Oct 2018 23:08Bookstar schrieb:
If I were you, I would rent. I only see advantages in that.In the village, there is only one rented house, which is fully occupied and never becomes available, and there isn’t a single rental apartment. Renting is not an option.
I guess I would build myself (but I am also someone who really wants to build). It could still take many years until the old lady’s house becomes available, and waiting for that would feel a bit strange, especially since you probably know her well in such a small village.
How large are the plots? Although with that price, I guess the size doesn’t really matter.
How strong is your desire to settle down?
Which medical specialty are you aiming for? Is there money to be made in that field? In other words: will you be able to afford partially writing off the construction costs? (I suspect so…)
How large are the plots? Although with that price, I guess the size doesn’t really matter.
How strong is your desire to settle down?
Which medical specialty are you aiming for? Is there money to be made in that field? In other words: will you be able to afford partially writing off the construction costs? (I suspect so…)
O
Obstlerbaum4 Oct 2018 23:35What year was the house built? I find 300k very expensive for your area. At nine öre per square meter, I wouldn’t hesitate for a second, provided you don’t plan to move away in the medium term.
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armmitcharme4 Oct 2018 23:53@Kekse: Thank you for your reply. The plots range from 490 to 750 square meters (5300 to 8100 square feet), and I’m leaning towards the largest one since they are quite affordable. At least if the soil quality is good, which I would definitely have checked beforehand.
Our desire to settle down is very strong. Above all, we want our little one not to have to change daycare or something similar, but to grow up in a stable environment. The village is really ideal for us (there are a few more reasons, but that would take us too far now), and ideally, we want to move there permanently, or at least for about 25 years.
I won’t become a specialist doctor making a fortune; I plan to be a rural general practitioner with several additional qualifications. But yes, I will earn enough money, and I could probably recoup 300,000 over time quite easily.
The problem is more that we would have to take on debt first, which makes me anxious. What I’m most afraid of, however, is being completely taken advantage of.
@Obstlerbaum: The house is supposed to cost 68,000 and was built in the 1970s. I had budgeted 300,000 for a new build. I thought new build prices didn’t fluctuate that much? Am I wrong?
Our desire to settle down is very strong. Above all, we want our little one not to have to change daycare or something similar, but to grow up in a stable environment. The village is really ideal for us (there are a few more reasons, but that would take us too far now), and ideally, we want to move there permanently, or at least for about 25 years.
I won’t become a specialist doctor making a fortune; I plan to be a rural general practitioner with several additional qualifications. But yes, I will earn enough money, and I could probably recoup 300,000 over time quite easily.
The problem is more that we would have to take on debt first, which makes me anxious. What I’m most afraid of, however, is being completely taken advantage of.
@Obstlerbaum: The house is supposed to cost 68,000 and was built in the 1970s. I had budgeted 300,000 for a new build. I thought new build prices didn’t fluctuate that much? Am I wrong?
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