Hello everyone,
We bought a house built in 1909 in the Greater Stuttgart area that needs renovation because we liked the location and the plot. The plan was to completely renovate it. Now we are quite torn about whether building a new house makes more sense. Of course, I don’t expect this forum to make the decision for us 🙂 I just hope to get some input, as we are currently about 50/50 on both options.
In summary: The house can be renovated well, and all the experts who have inspected it have given positive feedback. The renovation is estimated to cost around €250,000. The question, however, is more of an economic nature: Does it really make sense to invest that much money into an old house? The plot and the zoning plan allow for a house about twice the current size. So the other idea is to demolish, build bigger, and rent out 1-2 units. The financing with the bank is also arranged. However, the potential risks of new construction and renting are causing us some concern.
I don’t want to overwhelm you with lots of details. I have summarized everything in a pros and cons list. I look forward to your input or gut feelings.
We bought a house built in 1909 in the Greater Stuttgart area that needs renovation because we liked the location and the plot. The plan was to completely renovate it. Now we are quite torn about whether building a new house makes more sense. Of course, I don’t expect this forum to make the decision for us 🙂 I just hope to get some input, as we are currently about 50/50 on both options.
In summary: The house can be renovated well, and all the experts who have inspected it have given positive feedback. The renovation is estimated to cost around €250,000. The question, however, is more of an economic nature: Does it really make sense to invest that much money into an old house? The plot and the zoning plan allow for a house about twice the current size. So the other idea is to demolish, build bigger, and rent out 1-2 units. The financing with the bank is also arranged. However, the potential risks of new construction and renting are causing us some concern.
I don’t want to overwhelm you with lots of details. I have summarized everything in a pros and cons list. I look forward to your input or gut feelings.
Winniefred1 Feb 2021 15:55I would doubt that a 165m2 (1,776 sq ft) house from 1909 has worse structural quality than a new build. 165m2 (1,776 sq ft) is also quite spacious. In return, you have a house that has stood securely and well for over 100 years. Restore the house to its former glory; if done well, it will reward you. I don’t know what you want to make of it or what your goal is, but the budget you’ve planned is quite generous. With that budget, good insulation and so on are surely included, which doesn’t add much more cost and also means fewer repairs are needed. Such a house can also be a form of retirement security.
Renting it out, yes, but you have to invest money upfront, never really have peace of mind, and with some bad luck, you might get problem tenants or other issues. I wouldn’t want to put myself through that deliberately.
For me, it wouldn’t even be a question.
Renting it out, yes, but you have to invest money upfront, never really have peace of mind, and with some bad luck, you might get problem tenants or other issues. I wouldn’t want to put myself through that deliberately.
For me, it wouldn’t even be a question.
Just a few questions to help you out:
Does the old house have any features worth preserving? Are there any attractive elements that made you fall in love with the house? Was it ever something special, or was it simply a functional building that might have since been completely renovated?
Do you really want to rent it out? A single-family home is often chosen for the independence from others. Tenants here would probably annoy me a lot.
Is the garden worth keeping?
Does the old house have any features worth preserving? Are there any attractive elements that made you fall in love with the house? Was it ever something special, or was it simply a functional building that might have since been completely renovated?
Do you really want to rent it out? A single-family home is often chosen for the independence from others. Tenants here would probably annoy me a lot.
Is the garden worth keeping?
I think the pro and con list is nonsense.
You just have to decide for yourself whether you want to act as a landlord or not. Whether it pays off as an investment... I seriously doubt it. I would rather live in my house without tenants.
Regarding the costs:
Renovating 165 m² (1,776 sq ft) for 250,000€ is still cheaper than building a new house of 165 m² (1,776 sq ft) at 2000€/m² (186 sq ft) plus additional building-related costs and demolition.
Yes, it definitely makes sense.
You just have to decide for yourself whether you want to act as a landlord or not. Whether it pays off as an investment... I seriously doubt it. I would rather live in my house without tenants.
Regarding the costs:
Renovating 165 m² (1,776 sq ft) for 250,000€ is still cheaper than building a new house of 165 m² (1,776 sq ft) at 2000€/m² (186 sq ft) plus additional building-related costs and demolition.
solocan schrieb:
Does it really make sense to put so much money into an old house?
Yes, it definitely makes sense.
H
Hausbautraum201 Feb 2021 16:47First of all, I don’t understand the KfW point.
Almost every new build meets the KfW 55 standard, and you could even get it for multiple residential units.
I also don’t understand the Baukindergeld.
If you manage to get the building permit by the end of March, it would theoretically still be possible for a new build. With the renovation option, you would also have to move in within two months. I find that difficult to imagine for a proper renovation.
Apart from these points.
Personally, I would prefer to live in a new build, BUT I would rather live alone in the renovated house than in a new build with rented units.
However, it really depends on how much about the current house doesn’t work for you.
For example, no basement even though you want one? Very few windows? Terrible room layout?…
Only you can decide that.
So this landlord version would really not be for me… And for example, the point about retirement provision is total nonsense. You can just as well renovate for 300,000 euros and still have 600,000 euros left to buy an apartment elsewhere as a retirement investment. The comparison just doesn’t really fit overall.
Almost every new build meets the KfW 55 standard, and you could even get it for multiple residential units.
I also don’t understand the Baukindergeld.
If you manage to get the building permit by the end of March, it would theoretically still be possible for a new build. With the renovation option, you would also have to move in within two months. I find that difficult to imagine for a proper renovation.
Apart from these points.
Personally, I would prefer to live in a new build, BUT I would rather live alone in the renovated house than in a new build with rented units.
However, it really depends on how much about the current house doesn’t work for you.
For example, no basement even though you want one? Very few windows? Terrible room layout?…
Only you can decide that.
So this landlord version would really not be for me… And for example, the point about retirement provision is total nonsense. You can just as well renovate for 300,000 euros and still have 600,000 euros left to buy an apartment elsewhere as a retirement investment. The comparison just doesn’t really fit overall.
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