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
Mottenhausen6 Oct 2018 08:37Zaba12 schrieb:
The described proximity to Cologne and Bonn, yeah sure. So you consider 50 minutes to Bonn and 1 hour 10 minutes to Cologne as close? Would Landshut then count as the Munich metropolitan area for you or what?Um, I need to check again—I had read here about significantly shorter distances.
A
armmitcharme6 Oct 2018 09:1511ant schrieb:
Passive house OR tiled stove. @11ant: Could you briefly explain why? I’m not familiar with this and don’t understand.
armmitcharme schrieb:
@11ant : Could you briefly explain why? I have no idea and don’t understand.A tiled stove would be unthinkable in a passive house due to the heat buildup.
However, I’m not entirely sure; it might be possible to use a tiled stove as the main heating system.
A
armmitcharme6 Oct 2018 10:34ypg schrieb:
that a tiled stove can be used as the main heating system.That was actually my plan. We once had a passive house with a pellet stove, which worked great, so I was thinking of using a tiled stove instead. But I will discuss that with the experts once the time comes.
Regarding earning potential as a general practitioner, I can share some firsthand experience. Contrary to the negative reports from some newspapers, doctors, and others, the income of a family doctor, especially in rural areas, is still quite good. It might depend on who you compare yourself with, but owning a nice house and living comfortably is definitely possible—especially since it seems you’re not aiming to be high-end luxury car drivers. The idea that retirees cause a practice to fail is definitely not true. Additional qualifications are nice to have, but there are only 24 hours in a day. What I mean is: with traditional general practice, especially in the countryside, there is more than enough to keep you busy. There is often simply too little time left for extra hobbies, or you stop being a traditional rural doctor (which wouldn’t be good for the local community). Much more important than additional titles is having a sufficient number of patients; this is the key to the financial viability of a family doctor’s practice, which usually operates on a flat-rate payment system.
The only thing to keep in mind is that in remote rural areas, if you’re unlucky, people might ring your doorbell at any time of day or night, which can be inconvenient if you’re just having a barbecue. Also, you generally have to cover emergency duties much more often than practitioners in urban areas. However, this is partly balanced by the generally higher appreciation of a family doctor by the local population.
My opinion: if you can imagine this kind of life, definitely go for building. It’s about the whole package, not just a financial “return on investment.” And above all: don’t let anyone discourage you from pursuing the goal of being a rural doctor. Much of what is talked about is simply nonsense; just have a conversation with the local doctor.
The only thing to keep in mind is that in remote rural areas, if you’re unlucky, people might ring your doorbell at any time of day or night, which can be inconvenient if you’re just having a barbecue. Also, you generally have to cover emergency duties much more often than practitioners in urban areas. However, this is partly balanced by the generally higher appreciation of a family doctor by the local population.
My opinion: if you can imagine this kind of life, definitely go for building. It’s about the whole package, not just a financial “return on investment.” And above all: don’t let anyone discourage you from pursuing the goal of being a rural doctor. Much of what is talked about is simply nonsense; just have a conversation with the local doctor.
A
armmitcharme6 Oct 2018 11:06@mabuse: Thank you for your kind response. From your profile, I can see that you are a real insider, so I’m glad to hear that you consider my dream achievable. The doctor I’m in contact with, whose practice I could eventually take over, has about 2800 "cases" per quarter and says he already has more than enough patients. I am absolutely certain that he doesn’t have to worry financially. As you mentioned yourself, we are definitely not people who want to live extravagantly.