ᐅ Build a new house or wait for an affordable home to become available?
Created on: 4 Oct 2018 23:02
A
armmitcharme
Hello 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
M
Mottenhausen5 Oct 2018 12:29We were also faced with the decision to buy or build... Unsurprisingly, buying was easily €200,000 cheaper. What did we choose... we decided to build.
When choosing the plot, it was important for us that daycare and primary school were within walking distance (12 minutes), as well as that secondary schools could be reached by bike within 10 minutes. Babies grow up (very fast), and then other important needs arise, besides having a grandmother nearby.
When choosing the plot, it was important for us that daycare and primary school were within walking distance (12 minutes), as well as that secondary schools could be reached by bike within 10 minutes. Babies grow up (very fast), and then other important needs arise, besides having a grandmother nearby.
O
Obstlerbaum5 Oct 2018 12:56armmitcharme schrieb:
@Obstlerbaum: The house is supposed to cost 68k and was built in the 1970s. I had estimated 300k for a new build. I thought new build prices didn’t vary that much? Am I wrong? With a house from the 1970s, you will need to do some work to keep it in good condition for the next 50 years. The advantage is that you can spread the trades over time and distribute the costs. I would budget at least 30k for external insulation, 30k for the roof, 10k for windows, 10k for new electrical installation, 15k for a new heating system, and another 10k for interior renovation. Of course, this depends on how much you can do yourself.
Nine euros per square meter (about 10.8 sq ft) of land sounds quite steep, as if every building block loses its value once it extends onto the property—what about the average market price in the neighboring villages?
Just because a general practitioner’s income might allow for losing some value this way, it doesn’t mean it should be done.
The age of the house suggests a modernization that can be comfortably carried out step by step, and I find the idea of adding an annex like a granny flat for a shared living arrangement with the “great-grandmother by choice” quite appealing.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
Just because a general practitioner’s income might allow for losing some value this way, it doesn’t mean it should be done.
The age of the house suggests a modernization that can be comfortably carried out step by step, and I find the idea of adding an annex like a granny flat for a shared living arrangement with the “great-grandmother by choice” quite appealing.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
Basti2709 schrieb:
Zaba12 quotes Zaba12... but the link is for the original poster of the thread?...
And in our region, many things are often talked down... far east... population decline... etc.
But even here, you still have to pay 200,000 to 250,000 euros for a used house. At my parents’ village, it’s still over 100,000 euros... and these are really old buildings. With surface-mounted sockets, wood stoves, and single-glazed wooden windows... That was just emphasizing an opinion, nothing more.
I don’t send links unsolicited :-p
C
chand19865 Oct 2018 14:1511ant schrieb:
Just because a rural doctor’s income might allow spending part of it on depreciation doesn’t mean it should actually be used that way.If that is even the case at all. We are talking about a six-figure amount here. In my opinion, people throw around "hey, you can afford to pay that much for quality of life" way too casually.
It should be noted that the security provided by a salable property disappears if the job, the ability to work, a divorce, or something else disrupts the life plan... then there is an outstanding loan, but what exactly backs it?
11ant schrieb:
and I like the suggestion of adding an outhouse annex for a shared flat with the “great-great-grandmother.”That is certainly unusual to even quirky, but why not?
Wickie schrieb:
In the long term, I believe rural areas will become more popular again, and more people will seek to leave the city.You could bet against that with pretty high confidence. How do people come up with that? Most want to be close to jobs, there are fewer children, and the few who think differently won’t manage to create a small town anywhere out in the sticks.
I also don’t see any bank that would even finance something like this. Grandma will have to pay in cash.
I also don’t quite understand how a single grandmother could possibly make up for the obviously completely lacking infrastructure. Considering the land prices, it must really be in the middle of nowhere where nobody wants to go; the land is practically being given away.
I also don’t quite understand how a single grandmother could possibly make up for the obviously completely lacking infrastructure. Considering the land prices, it must really be in the middle of nowhere where nobody wants to go; the land is practically being given away.