Hello everyone,
I’m not sure if this is the right place for my question, but I’ll give it a try
We have been struggling for several months with the question of what is “better”: building a new house or buying an existing property. We currently have an existing property in sight and could also purchase a plot of land (small new development). Both options have a good location for us.
The existing property:
Detached single-family house with a granny flat (secondary dwelling),
Garage,
Small but more than sufficient garden
140 sqm (1500 sq ft) living space (+40 sqm (430 sq ft) granny flat)
800 sqm (8600 sq ft) plot
Built in 1991
Very well maintained, but nothing modernized. So still the old gas heating system, bathroom, etc. (However, the bathroom is white and in very good condition)
Purchase price around 370,000 euros, including all additional costs.
A few thousand euros would still be needed for new wallpaper and some paint. After that, our budget would be exhausted for further (not necessary) renovation work, such as a modern bathroom, nicer tiles, a new heating system (current heating costs about 2000 euros per year – roughly three times as much as for a new build), and so on. (Of course, reserves for any urgent repairs are still available.)
New build:
The plot (600 sqm (6500 sq ft)) would cost about 80,000 euros.
The new build, without a granny flat (so roughly the same living area of 140 sqm (1500 sq ft)), amounts to about 280,000 euros.
+ additional building costs
+ garage
+ landscaping
+ who knows what else...
So, roughly calculated, it’s more expensive.
However, we would have everything just the way we want it – the tiles, doors, windows, electrical outlets, bathroom, etc.
Also, the new build would be more energy-efficient (supposedly about 600 euros heating costs per year with gas heating due to better insulation, modern windows, modern heating system, etc.)
We are skilled DIYers, but both of us work full time and have a small child. So, there really isn’t much time to do a lot of work ourselves on a new build. With the existing property, we could theoretically move in immediately.
Do you have any tips or experiences that could help us with our decision?
Of course, I understand that we need to make the decision ourselves, but maybe there are things we haven’t considered.
Thanks in advance,
Best regards, Peter
I’m not sure if this is the right place for my question, but I’ll give it a try
We have been struggling for several months with the question of what is “better”: building a new house or buying an existing property. We currently have an existing property in sight and could also purchase a plot of land (small new development). Both options have a good location for us.
The existing property:
Detached single-family house with a granny flat (secondary dwelling),
Garage,
Small but more than sufficient garden
140 sqm (1500 sq ft) living space (+40 sqm (430 sq ft) granny flat)
800 sqm (8600 sq ft) plot
Built in 1991
Very well maintained, but nothing modernized. So still the old gas heating system, bathroom, etc. (However, the bathroom is white and in very good condition)
Purchase price around 370,000 euros, including all additional costs.
A few thousand euros would still be needed for new wallpaper and some paint. After that, our budget would be exhausted for further (not necessary) renovation work, such as a modern bathroom, nicer tiles, a new heating system (current heating costs about 2000 euros per year – roughly three times as much as for a new build), and so on. (Of course, reserves for any urgent repairs are still available.)
New build:
The plot (600 sqm (6500 sq ft)) would cost about 80,000 euros.
The new build, without a granny flat (so roughly the same living area of 140 sqm (1500 sq ft)), amounts to about 280,000 euros.
+ additional building costs
+ garage
+ landscaping
+ who knows what else...
So, roughly calculated, it’s more expensive.
However, we would have everything just the way we want it – the tiles, doors, windows, electrical outlets, bathroom, etc.
Also, the new build would be more energy-efficient (supposedly about 600 euros heating costs per year with gas heating due to better insulation, modern windows, modern heating system, etc.)
We are skilled DIYers, but both of us work full time and have a small child. So, there really isn’t much time to do a lot of work ourselves on a new build. With the existing property, we could theoretically move in immediately.
Do you have any tips or experiences that could help us with our decision?
Of course, I understand that we need to make the decision ourselves, but maybe there are things we haven’t considered.
Thanks in advance,
Best regards, Peter
Thank you for the contributions and advice.
I realize that the decision doesn’t get any easier the more I think about it.
Yesterday we visited the existing property again and looked everything over. Everything seems to be in good condition (although I will still check with an expert). There are no carpets either. Living room, kitchen, bathroom, guest toilet, hallway, stairs, and basement are all tiled. The bedrooms all have parquet flooring (some were sanded and sealed a few years ago). I don’t think there will be any major surprises. It is clear that the bathroom needs to be completely redone, but that would be possible while we still live there since the guest toilet also has a shower.
The plot is closer to the town center—shops, etc. can be reached by car in 3 minutes instead of 10, or on foot in 10 instead of 30. However, the land slopes down at the back, which means you can’t step out directly onto the terrace at ground level. So either a large balcony would have to be added or stairs to the terrace or garden. Neither option is ideal for us. Therefore, the existing property seems more suitable.
There is also a third option: staying in our current apartment and eventually taking over the house there (from the parents-in-law). But space will get tight if we have another child. I think this is partly why the decision is so difficult—we “wouldn’t” have to buy anything to eventually live rent-free.
Best regards,
Peter
I realize that the decision doesn’t get any easier the more I think about it.
Yesterday we visited the existing property again and looked everything over. Everything seems to be in good condition (although I will still check with an expert). There are no carpets either. Living room, kitchen, bathroom, guest toilet, hallway, stairs, and basement are all tiled. The bedrooms all have parquet flooring (some were sanded and sealed a few years ago). I don’t think there will be any major surprises. It is clear that the bathroom needs to be completely redone, but that would be possible while we still live there since the guest toilet also has a shower.
The plot is closer to the town center—shops, etc. can be reached by car in 3 minutes instead of 10, or on foot in 10 instead of 30. However, the land slopes down at the back, which means you can’t step out directly onto the terrace at ground level. So either a large balcony would have to be added or stairs to the terrace or garden. Neither option is ideal for us. Therefore, the existing property seems more suitable.
There is also a third option: staying in our current apartment and eventually taking over the house there (from the parents-in-law). But space will get tight if we have another child. I think this is partly why the decision is so difficult—we “wouldn’t” have to buy anything to eventually live rent-free.
Best regards,
Peter
D
Doc.Schnaggls10 Apr 2015 09:10Hello Peter.
In our "old" apartment, we also had parquet flooring everywhere except for the bathroom and kitchen – so please keep in mind that the parquet may have changed color in some areas (for example, under wardrobes and beds) differently than in areas exposed to light. If you don’t place your furniture exactly as the current owners do, you will probably have to get used to the uneven coloring for some time.
That’s already good. But please also consider that if you renovate the bathroom after moving in, you will have to live with fine construction dust for quite a while – it really gets everywhere no matter how well you try to seal off the area.
For me, that wouldn’t be a dealbreaker. Our terrace is also about 1.8 meters (6 feet) above garden level (also a sloped plot). We bridged that height difference with two steps and a planting bed in between.
That wouldn’t really be an option for me. After all, you want to enjoy the space and benefits of your own house now, not someday far in the future. And if you really end up inheriting a property (care costs have eaten up many a house), you can always use the rent to cover a loan, or after selling the inherited property and paying off your mortgage, live stress-free in your own house.
Best regards,
Dirk
rupapu schrieb:
There are no carpets either. Living room, kitchen, bathroom, guest WC, hallway, stairs, and basement are all tiled. The bedrooms all have parquet flooring (some of which was sanded and sealed again a few years ago). I don’t think there will be any big surprises there.
In our "old" apartment, we also had parquet flooring everywhere except for the bathroom and kitchen – so please keep in mind that the parquet may have changed color in some areas (for example, under wardrobes and beds) differently than in areas exposed to light. If you don’t place your furniture exactly as the current owners do, you will probably have to get used to the uneven coloring for some time.
rupapu schrieb:
It’s clear that the bathroom needs a full renovation. That would be doable while living there, as there is also a shower in the guest WC.
That’s already good. But please also consider that if you renovate the bathroom after moving in, you will have to live with fine construction dust for quite a while – it really gets everywhere no matter how well you try to seal off the area.
rupapu schrieb:
Although the plot is closer to the town center – meaning shops etc. are reachable within 3 minutes by car instead of 10 minutes, or within 10 minutes on foot instead of 30 – the plot slopes downward at the back, which means you can’t have direct ground-level access to the terrace. So either a large balcony would need to be built, or stairs to the terrace or garden. We both don’t find that very appealing.
For me, that wouldn’t be a dealbreaker. Our terrace is also about 1.8 meters (6 feet) above garden level (also a sloped plot). We bridged that height difference with two steps and a planting bed in between.
rupapu schrieb:
There is also a third option: staying in the current apartment and eventually taking over the house there (from the parents-in-law). But it will get quite tight when another child arrives. That’s probably also why it’s so hard for us to decide. I mean, we wouldn’t “have” to buy anything now to live rent-free later.
That wouldn’t really be an option for me. After all, you want to enjoy the space and benefits of your own house now, not someday far in the future. And if you really end up inheriting a property (care costs have eaten up many a house), you can always use the rent to cover a loan, or after selling the inherited property and paying off your mortgage, live stress-free in your own house.
Best regards,
Dirk
rupapu schrieb:
I notice that the decision doesn’t get any easier the more I think about it.I don’t understand that now, your arguments and positive feelings (and also ours) point towards existing property... until #20 Dirk came with his arguments.
Just take a look at the hardwood flooring... I don’t know: could it possibly be restored by sanding? You might want to ask in the forum.
And the fine dust from the bathroom renovation: it’s caused by removing the old tiles. Maybe you can tile over the existing tiles if you like the layout. Removing tiles (behind a dust barrier) can be done within 2 days; after that, cleaning takes about 3 days, so be sure to cover everything in advance.
Please share your decision with us, Peter!
Regards, Yvonne
Umbau-Susi11 Apr 2015 09:40We had to make a decision over a weekend between an idyllic building plot above the city with relatively long distances and an existing property in the city that required investment.
While going through the existing property, I found myself mentally arranging the interior (I know, you’re not supposed to do that). An expert said the basic structure was good, but...
In the end, it meant gutting the house and completely renewing all utility lines, electrical work, floors, etc. Adding a terrace was then just a “nice to have.”
And yet, and especially because of that, it has become our home. We know every corner.
A typical new development area around here would not have been an option for me because of the lack of space.
We are always glad that we chose the existing property with its mature garden after careful consideration.
Sylvia
While going through the existing property, I found myself mentally arranging the interior (I know, you’re not supposed to do that). An expert said the basic structure was good, but...
In the end, it meant gutting the house and completely renewing all utility lines, electrical work, floors, etc. Adding a terrace was then just a “nice to have.”
And yet, and especially because of that, it has become our home. We know every corner.
A typical new development area around here would not have been an option for me because of the lack of space.
We are always glad that we chose the existing property with its mature garden after careful consideration.
Sylvia
For me, the existing property is out of consideration due to its distance from the town center, which also explains the significant difference in the land value compared to the new development area – the latter is clearly much closer to various infrastructures. If your town or the municipality/region is economically weak and/or experiencing population decline, the values outside the main infrastructure will likely perform worse than those in the core area. This would need to be examined on a larger scale, but similar existing properties within a 30-minute walk to the city center were offered to me/us in 2011, with a land value of around €125 per square meter (approximately $135 per square yard at that time), which was significantly higher than in your area, marketed as “high-quality existing properties in prime residential locations.”
I then drove through the residential area, which was enough for me—I didn’t even look at specific properties, even though there are really high-quality homes there.
Of course, it’s a personal decision whether you want to live in such areas and feel comfortable there, but the price development is weak in the long term because older residents move out of these neighborhoods (house too large, too far from the pharmacy, probably exactly why the house is being sold to you), and it’s questionable whether the location’s value will hold if the municipality clearly focuses development closer to the center, where there is still space available or that can be newly structured.
Please don’t get me wrong—I generally prefer buying an existing property in a comparable location; new builds were never an option for us. However, the difference of about €30-40 per square meter in land value, which is clearly apparent in your case, cannot be easily dismissed. This reflects a clear quality difference in the location, and for the existing property to be considered equivalent in this regard, the location of the existing property would have to offer you a significant personal long-term advantage (e.g., considerably shorter commutes).
Second point: bathroom renovation. We originally planned to leave a part of the house as-is and address it in 5 to 10 years. But after seeing the mess during the planned gut renovation, the decision quickly shifted in the other direction, and other projects were postponed. I am really happy with that decision. In short: I would definitely plan and carry out the bathroom renovation immediately. If you do that and the purchase price is non-negotiable, you’re also looking at a figure starting with a 4 in front. This would make the new build in a better location, with a garden and all additional costs, more financially viable.
Best regards,
Dirk Grafe
I then drove through the residential area, which was enough for me—I didn’t even look at specific properties, even though there are really high-quality homes there.
Of course, it’s a personal decision whether you want to live in such areas and feel comfortable there, but the price development is weak in the long term because older residents move out of these neighborhoods (house too large, too far from the pharmacy, probably exactly why the house is being sold to you), and it’s questionable whether the location’s value will hold if the municipality clearly focuses development closer to the center, where there is still space available or that can be newly structured.
Please don’t get me wrong—I generally prefer buying an existing property in a comparable location; new builds were never an option for us. However, the difference of about €30-40 per square meter in land value, which is clearly apparent in your case, cannot be easily dismissed. This reflects a clear quality difference in the location, and for the existing property to be considered equivalent in this regard, the location of the existing property would have to offer you a significant personal long-term advantage (e.g., considerably shorter commutes).
Second point: bathroom renovation. We originally planned to leave a part of the house as-is and address it in 5 to 10 years. But after seeing the mess during the planned gut renovation, the decision quickly shifted in the other direction, and other projects were postponed. I am really happy with that decision. In short: I would definitely plan and carry out the bathroom renovation immediately. If you do that and the purchase price is non-negotiable, you’re also looking at a figure starting with a 4 in front. This would make the new build in a better location, with a garden and all additional costs, more financially viable.
Best regards,
Dirk Grafe
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