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!?
Well, maybe you should start by exploring the real estate market to understand the costs involved with both purchasing an existing property and building new. This might help you appreciate your current situation more and make better use of what you have. Given your current income situation, I don’t see how a reasonable scenario can arise with the 3000 Euros per square meter (approximately 280 USD per square foot) living area you mentioned.
It seems you’re currently debt-free. I would suggest taking the advice given earlier here: do a detailed calculation for your existing property and then compare it with buying or new construction. That might also put into perspective
which you haven’t really explained in detail so far.
It seems you’re currently debt-free. I would suggest taking the advice given earlier here: do a detailed calculation for your existing property and then compare it with buying or new construction. That might also put into perspective
Zimtstern27 schrieb:
Now we don’t like it at all...
which you haven’t really explained in detail so far.
Z
Zimtstern271 Sep 2020 20:12kbt09 schrieb:
Well, maybe you should start by looking at the real estate market to get an idea of the costs involved in buying an older property versus building new, and then you might enjoy making the most of what you already have. Given your current income situation, I don’t see how a reasonable scenario can be achieved with the 3000 Euro/sqm (about 279 USD/sqft) living space you mentioned.
It seems you are debt-free now. I’d suggest picking up the advice already given here: calculate the value of your current property carefully and then compare that with buying or building new. That might put things into perspective, especially regarding
what you haven’t explained in detail so far. The situation with neighbors on three sides is really frustrating... You have zero privacy.
Additionally, almost all rooms in the house are so small and awkwardly arranged that the bathroom becomes a real challenge. You essentially ‘have to’ add a new floor! Then you’d also need to install a complete central heating system...
And all of this while the house is still occupied...
On top of that, it would probably cost a fortune to have the street blocked off, considering there’s a school and buses around. Believe me, I’ve already done a lot of research and thinking about this.
Moreover, the house is located on a busy main road. Across the street, there are three schools. From 7 AM to 4 PM, it’s nonstop noise with easily eight buses stopping right outside, and so on.
And to put up with all that if you don’t feel comfortable?
I understand that building a new house isn’t something you can just do easily or quickly...
Z
Zimtstern271 Sep 2020 20:16Joedreck schrieb:
First of all, the question is how you come to expect a drop in property prices.
Then, simply put, your income is too low to afford buying or building new in your area. Even in the worst locations in Germany, it’s tight, even if the land is given for free.
Equity through inheritance is of course a good start. Your semi-detached house will likely only sell well below market value due to the incomplete renovation.
You’re reaching for the stars without having anywhere near the necessary capital. Whether you’re grateful or not, the only alternative would be an affordable condominium, maybe with a garden share, after selling the semi-detached house.
Or significantly increase your income.
I would still complete the renovation. No one in my circle of acquaintances earns €6000 net (about $6500) as seems common here in the forum... Still, 80% of people built houses in the last 3 years!
&
In this area, houses with specifications similar to ours sell for much more... I can’t really understand it either, but apparently the demand is there...
Z
Zimtstern271 Sep 2020 20:24Joedreck schrieb:
Or significantly increase your incomeWhat kind of significant income increase are we talking about? For example, for a family of three?Looking at the area and assuming your mentioned 320k as equity, I would estimate around €4000/month (about $4400/month) to reach a reasonable range.
What other people often forget to mention are things like inheritance, family grants, and so on. So don’t look to the left or right, but focus on your own situation.
With €2500/month (about $2800/month) plus equity, I would look for properties up to a maximum of 450k.
What other people often forget to mention are things like inheritance, family grants, and so on. So don’t look to the left or right, but focus on your own situation.
With €2500/month (about $2800/month) plus equity, I would look for properties up to a maximum of 450k.
Z
Zimtstern271 Sep 2020 20:45Joedreck schrieb:
Looking at the area and considering your stated 320k as equity, I would estimate around €4,000/month (approximately $4,400/month) to reach a reasonable range.
What people often forget to mention are things like inheritance, family contributions, and so on. So don’t compare yourself to others but focus on your own situation.
With €2,500/month (about $2,750/month) plus equity, I would look for properties up to a maximum of €450k (around $500k). OK, your figures seem pretty manageable and realistic to me!
Let’s see what time will bring... Realistically, existing houses up to €450k (approximately $500k) are definitely an option.
With some personal work, it’s doable as well.
Besides, we are now saving between €500 and €700 (around $550 to $770) every month again... Depending on how much we invest here, sometimes more, sometimes less.