Hello,
I am a bit torn...
Last year, we inherited an old house.
We have partially renovated it (built in 1931, semi-detached, 85 sqm (915 sq ft), 343 sqm (3,690 sq ft) plot).
New electrical wiring, new windows and front door, newly plastered walls, new flooring, new stainless steel chimney pipe, and new fireplace...
There would still be heating (central heating), a new roof or extension, and completely new water pipes with a new bathroom to be renovated...
We have not carried out the remaining renovations yet because until now, we didn’t know if we would even like living there.
Our feeling was right... a semi-detached house is really not our thing. Also, renovations by external contractors in an occupied house would not be feasible.
Now my question: Would buying a house even be an option at current prices? Or should we consider new construction instead?
We might possibly have the opportunity to buy a plot of land, but unfortunately, I don’t know the exact prices.
In our area, house prices are around +/- 3300/sqm (around $310/sq ft) (outskirts of Nuremberg).
What do you think!?
I am a bit torn...
Last year, we inherited an old house.
We have partially renovated it (built in 1931, semi-detached, 85 sqm (915 sq ft), 343 sqm (3,690 sq ft) plot).
New electrical wiring, new windows and front door, newly plastered walls, new flooring, new stainless steel chimney pipe, and new fireplace...
There would still be heating (central heating), a new roof or extension, and completely new water pipes with a new bathroom to be renovated...
We have not carried out the remaining renovations yet because until now, we didn’t know if we would even like living there.
Our feeling was right... a semi-detached house is really not our thing. Also, renovations by external contractors in an occupied house would not be feasible.
Now my question: Would buying a house even be an option at current prices? Or should we consider new construction instead?
We might possibly have the opportunity to buy a plot of land, but unfortunately, I don’t know the exact prices.
In our area, house prices are around +/- 3300/sqm (around $310/sq ft) (outskirts of Nuremberg).
What do you think!?
Z
Zimtstern2731 Aug 2020 20:37Joedreck schrieb:
OK, I didn’t know that neither heating nor bathrooms were available. However, there is now a figure that reflects the (future) debts, and it is within a reasonable range.
The ratio will be different with a new build.
By the way, both heating and bathrooms (modernized for accessibility) are subsidized.
Unfortunately, your income is really quite low. Without the inheritance, probably only a very modest rental apartment would be feasible.
Alternatively, selling the house and buying a condominium might be possible. The salary will change again, though. I’m definitely assuming around 3500€ (about $3750) then.
It’s certainly safer to plan with less...
If prices for existing properties weren’t so high, that would be my first choice, and 110 sqm (1184 sq ft) would be plenty for us.
We just have a fireplace now and two electric heaters (for power and heating), we pay about €100 (around $108) per month... Actually pretty cheap already but definitely not a long-term solution.
We do have bathrooms, but only in the basement... which isn’t really ideal.
Zimtstern27 schrieb:
The salary will change again though. I would definitely assume around 3500€ (about 3700 USD) then..
It's certainly better to calculate with less...
If prices for existing properties weren't so high, that would be my first choice and 110 sqm (1184 sq ft) would be more than enough for us.
We currently have a fireplace and 2 electric heaters (paying for electricity and heating) costing about 100€ (about 110 USD) per month... actually quite cheap already, but definitely not a permanent solution..
We already have bathrooms.. but only in the basement.. which isn’t really ideal. No, definitely not a permanent solution.
Basically, you can do whatever you want. I just see it as difficult to get what you’re looking for at a price that’s reasonable for you. I understand that a semi-detached house might not be the best solution for you personally. But look around your area too. Who can honestly claim to own a (partially renovated) house nearby with a net salary of less than 3000€ (about 3200 USD)?
It feels like you’re aiming for the stars.
My personal opinion remains: finish the house, keep low monthly payments, and don’t stress about job security. Because what might happen in the future is nobody’s guess.
Winniefred1 Sep 2020 07:59I think you are actually in a comfortable situation. The house you have now was inherited, and you only need to complete the renovation. It is a semi-detached house? Is there a possibility to build an extension or better convert the attic?
Edit: I just read that adding a roof extension or raising the roof is possible anyway. How much additional space would that create? You’re already living there even though the rough-in plumbing and the sanitary installations themselves haven’t been done yet? How did that happen… you have the electrical work and plastering finished, but not the bathrooms or water pipes?
If necessary, I would tolerate a few weeks of dust. Usually, construction sites can be well separated with dust protection doors, etc. You probably don’t have four small children, which would be a different matter.
What exactly do you dislike about the semi-detached house?
I would finish the renovation, stay there a bit longer, and if needed, sell later when you are working full time again. Then you can build or buy what you really want. Living as a couple in your own house is certainly not a punishment that can’t be endured.
Edit: I just read that adding a roof extension or raising the roof is possible anyway. How much additional space would that create? You’re already living there even though the rough-in plumbing and the sanitary installations themselves haven’t been done yet? How did that happen… you have the electrical work and plastering finished, but not the bathrooms or water pipes?
If necessary, I would tolerate a few weeks of dust. Usually, construction sites can be well separated with dust protection doors, etc. You probably don’t have four small children, which would be a different matter.
What exactly do you dislike about the semi-detached house?
I would finish the renovation, stay there a bit longer, and if needed, sell later when you are working full time again. Then you can build or buy what you really want. Living as a couple in your own house is certainly not a punishment that can’t be endured.
Zimtstern27 schrieb:
If the prices of existing properties were not so highThen the prices for new builds wouldn’t be any lower.Winniefred schrieb:
I understand that roofing and an additional floor are possible anyway. How much extra space does that provide? You’re already living there even though the rough-in plumbing and the plumbing fixtures haven’t been installed yet? How did that happen... you’ve completed the electrical work and plastering, but not the bathrooms or water pipes? Exactly my thought from the original post. The walls are already plastered, but the heating and water still need to go inside the walls?
So you’re already living in the house?
I would suggest using the remaining budget plus a small loan to complete all the plumbing and heating systems as soon as possible. Even if you plan to sell, this is generally a value-adding improvement.
Sure, living on a construction site without heating isn’t appealing, and I’d probably want to sell the house myself. With heating and a functional bathroom, maybe things will turn around.
The following point could also be relevant for the existing property.
Since January 1, 2020, there is a new tax incentive for energy-related measures.
Going forward, energy-related measures costing up to a maximum of €40,000 (approximately $43,000) can be credited at 20% spread over 3 years against income tax.
For total costs of €40,000, this means that in years 1 and 2, €2,800 (7%) can be credited against the income tax payable, and in year 3, €2,400 (6%).
However, this cannot be combined with other subsidy programs such as KfW or BAFA.
Since January 1, 2020, there is a new tax incentive for energy-related measures.
Going forward, energy-related measures costing up to a maximum of €40,000 (approximately $43,000) can be credited at 20% spread over 3 years against income tax.
For total costs of €40,000, this means that in years 1 and 2, €2,800 (7%) can be credited against the income tax payable, and in year 3, €2,400 (6%).
However, this cannot be combined with other subsidy programs such as KfW or BAFA.
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