ᐅ Building, Buying, or Renovating? – What Makes the Most Sense When You Want a Modern Home?
Created on: 8 Aug 2021 17:13
P
PeterPan1986
Hello dear forum community,
after my partner and I have been intensively working on our homebuilding project since January, we have now reached a point where we rely on your detailed experiences.
We currently live affordably in the Eifel region and are increasing our equity in line with our plans. With a budget of 500-550k euros, we want to own a modern single-family house for the future.
Unfortunately, the search for a house/plot is proving to be (unsurprisingly) difficult. Our preferences would be a well-maintained house in a neat neighborhood with houses built from 1980 onwards (or correspondingly modernized). A rural setting with existing infrastructure is also important to us, as we value that our children can later get around by bike.
Unfortunately, the waiting lists for the corresponding new development areas are long, although we have a promising position in our hometown. As an alternative to new construction, we could imagine buying a house, but unfortunately, the properties we have considered (from the 1990s onward) are exorbitantly expensive and not modernized—or in a poor location. Occasionally, we come across houses built in the 1970s that would require extensive modernization to meet our expectations.
This raises several questions for us:
1. Assuming we buy a house from the 1970s and bring it up to the latest technical standards, the construction year does not change. What disadvantages arise from this regarding durability, etc.?
2. Who among you has experience with such a project and would be willing to share it here? Was it worth it? Would you do it again? What are, in your opinion, the pros and cons?
3. We place importance on energy efficiency and modern heating technology (preferably air-to-air or air-to-water heat pumps including a photovoltaic system). Is this feasible within a renovation and a normal cost framework?
Thank you in advance for your experiences and answers.
Have a nice Sunday!
after my partner and I have been intensively working on our homebuilding project since January, we have now reached a point where we rely on your detailed experiences.
We currently live affordably in the Eifel region and are increasing our equity in line with our plans. With a budget of 500-550k euros, we want to own a modern single-family house for the future.
Unfortunately, the search for a house/plot is proving to be (unsurprisingly) difficult. Our preferences would be a well-maintained house in a neat neighborhood with houses built from 1980 onwards (or correspondingly modernized). A rural setting with existing infrastructure is also important to us, as we value that our children can later get around by bike.
Unfortunately, the waiting lists for the corresponding new development areas are long, although we have a promising position in our hometown. As an alternative to new construction, we could imagine buying a house, but unfortunately, the properties we have considered (from the 1990s onward) are exorbitantly expensive and not modernized—or in a poor location. Occasionally, we come across houses built in the 1970s that would require extensive modernization to meet our expectations.
This raises several questions for us:
1. Assuming we buy a house from the 1970s and bring it up to the latest technical standards, the construction year does not change. What disadvantages arise from this regarding durability, etc.?
2. Who among you has experience with such a project and would be willing to share it here? Was it worth it? Would you do it again? What are, in your opinion, the pros and cons?
3. We place importance on energy efficiency and modern heating technology (preferably air-to-air or air-to-water heat pumps including a photovoltaic system). Is this feasible within a renovation and a normal cost framework?
Thank you in advance for your experiences and answers.
Have a nice Sunday!
PeterPan1986 schrieb:
By a "normal cost approach," I mean that if the purchase price is 350,000€ (about $370,000), I shouldn’t have to invest another 250,000€ (about $265,000).
A modern insulation system, windows, heating, and photovoltaics are especially important to me. Costs primarily depend on two factors: the land value or location, meaning the purchase price. What can you get for 350,000€ (about $370,000) in your area?
The second key parameter is living area. Renovating 150 m² (1,615 sq ft) with 250,000€ (about $265,000) amounts to 1,666€ (about $1,750) per m². That is cheaper than a new build at 2,500€ (about $2,620) per m² (plus additional construction-related costs).
As a very rough rule of thumb: as long as the purchase price minus land value plus renovation costs stay below 2,500€ (about $2,620) per m², I think that’s reasonable.
Of course, you already have wishes that drive up costs: photovoltaics, insulation, probably underfloor heating.
PeterPan1986 schrieb:
@Tassimat: What measures did you have to take, and what was the biggest challenge? Everything, including new interior plaster, since it was a smoker’s den. I also wanted photovoltaics at one point, but that was cut due to costs. Plus, there wasn’t enough free roof space.
The biggest challenge was probably managing the timing stress: work, kids, planning, doing some of the work myself, constantly coordinating tradespeople, being on site every day... and all that for more than a year. But I really wanted to do it, and that’s essential.
We have completed a full renovation of a house built in 1958. First of all, I want to emphasize that the two years spent on this project were very intense, and I wouldn’t want to do it again.
Despite that, we don’t regret it. Although we contributed a large portion of the work ourselves (complete gutting, constructing the desired shell, drywall, electrical work, project management, structural engineering, etc.), in the end, we came close to the cost of a very affordable new build. The building’s structure was in very good condition, and there were no unexpected issues. This means we significantly exceeded the often-quoted cost range of 500–1000€ per m² (approximately $55–110 per ft²). Also, the region is probably on the lower end of costs when compared internationally. Renovating an older building is time-consuming and can sometimes be more expensive than new construction (for example, the thickness of plaster in older buildings). However, with enough money, almost everything can be addressed. For instance, we removed six walls and converted the basement into a residential area. We also focused on achieving modern standards (underfloor heating across three floors, wall heating in the basement, insulation, network wiring, walk-in showers, etc.).
In hindsight, a renovation is probably better suited for builders who are not keen on constantly chasing the latest trends and want to continue using the existing “substance” of the building. Our advantages were the large plot of land in an established neighborhood with older buildings, the opportunity to do much of the work ourselves, and the house’s charm. On the downside, you always have to live with certain compromises despite everything (for example, ceiling height). Also, it will be difficult to reach the energy consumption level of a Kfw 40+ (energy-efficient) house.
We learned a lot and would definitely do some things differently now. Hopefully, we never have to go through it again 🙂.
Despite that, we don’t regret it. Although we contributed a large portion of the work ourselves (complete gutting, constructing the desired shell, drywall, electrical work, project management, structural engineering, etc.), in the end, we came close to the cost of a very affordable new build. The building’s structure was in very good condition, and there were no unexpected issues. This means we significantly exceeded the often-quoted cost range of 500–1000€ per m² (approximately $55–110 per ft²). Also, the region is probably on the lower end of costs when compared internationally. Renovating an older building is time-consuming and can sometimes be more expensive than new construction (for example, the thickness of plaster in older buildings). However, with enough money, almost everything can be addressed. For instance, we removed six walls and converted the basement into a residential area. We also focused on achieving modern standards (underfloor heating across three floors, wall heating in the basement, insulation, network wiring, walk-in showers, etc.).
In hindsight, a renovation is probably better suited for builders who are not keen on constantly chasing the latest trends and want to continue using the existing “substance” of the building. Our advantages were the large plot of land in an established neighborhood with older buildings, the opportunity to do much of the work ourselves, and the house’s charm. On the downside, you always have to live with certain compromises despite everything (for example, ceiling height). Also, it will be difficult to reach the energy consumption level of a Kfw 40+ (energy-efficient) house.
We learned a lot and would definitely do some things differently now. Hopefully, we never have to go through it again 🙂.
H
HilfeHilfe9 Aug 2021 06:16At some point, you have to make a decision. If you are not handy and lack confidence, you should reconsider renovation or be prepared to spend a lot of money on professional contractors. I find the idea of bringing a house up to the latest standards questionable.
H
hampshire9 Aug 2021 09:55PeterPan1986 schrieb:
1. Assuming we buy a house from the 1970s and bring it up to the latest technical standards, the original construction year doesn't change. What disadvantages does this have in terms of durability, etc.? If the building’s condition is sound: no disadvantages—just to confirm what others have said.
PeterPan1986 schrieb:
2. Who here has experience with such a project and would be willing to share it here? Was it worth it? Would you do it again? From your point of view, what are the pros and cons? Secondhand experience: a friend’s project involving renovation of an old building plus a new extension. It was definitely worth it, resulting in a characterful overall property. Our friends had a very tight budget and did much of the work themselves. I wouldn’t have had the stamina to work and live on the construction site daily and on weekends for months with a large family. It was tough but right for our friends; for us, it would have been overwhelming.
Pro/con balance: When modernizing an existing building, it’s easier to imagine what living there will be like. New construction offers the opportunity to be structurally creative if you want to. Both paths can lead to a wonderful home.
PeterPan1986 schrieb:
3. We value energy efficiency and modern heating technology (preferably air-to-air or air-to-water heat pumps including photovoltaic systems). Is this achievable within a renovation project and a typical budget? Achieving energy efficiency in an older building is not as straightforward as with a new build, where the wall construction is designed from the start for efficiency. Extracting the last few efficiency percentages will be costly. However, when considering the overall picture, renovating an existing building has the advantage in terms of climate neutrality because a lot of embodied energy is already invested in the structure and does not need to be reinvested. So, if efficiency is primarily important to you for climate protection reasons, buying an existing property is very likely the better option.
P
PeterPan198613 Aug 2021 18:41Hello, thank you very much for the numerous responses.
Unfortunately, I was very busy with work this week, so I am only replying now.
Having an existing floor plan would be an advantage for us, as it would save us the creative part (which I would be very grateful for ;-) ).
Regarding our DIY skills: I think the limiting factor for us is the lack of experience on construction sites, which means to me: We could do some work, but in certain areas, we wouldn’t really know what we’re doing. So, only simple tasks.
The modern energy standards are important to us for two reasons. The first is sustainability in general, with the aspect that when buying, the construction work does not need to be done again being a new but interesting thought for me. Otherwise, for economic reasons, we want to become as independent from energy prices as possible, and to be honest, I am still quite a tech enthusiast.
Regarding the official land value estimates, I have found that they only apply to price determination to a limited extent. There are houses from the 1970s on 700 sqm (7,535 sq ft) plots, partially renovated, for 440,000 €. Overall, though, that is a lot of money for many compromises we would have to accept.
We are generally considering increasing our budget; the banks would lend us significantly more money, and we could manage it, but I am not really willing to spend 650,000 € or more for a house.
The good thing is that we basically have no time pressure.
In mid-September, decisions will be made in the new development area around the corner about how many plots will be returned from reservations.
Is there anyone here who has switched from an oil/gas heating system to modern heating technology? I would be interested to know what kind of work is involved in this.
Best regards and have a nice weekend!
Unfortunately, I was very busy with work this week, so I am only replying now.
Having an existing floor plan would be an advantage for us, as it would save us the creative part (which I would be very grateful for ;-) ).
Regarding our DIY skills: I think the limiting factor for us is the lack of experience on construction sites, which means to me: We could do some work, but in certain areas, we wouldn’t really know what we’re doing. So, only simple tasks.
The modern energy standards are important to us for two reasons. The first is sustainability in general, with the aspect that when buying, the construction work does not need to be done again being a new but interesting thought for me. Otherwise, for economic reasons, we want to become as independent from energy prices as possible, and to be honest, I am still quite a tech enthusiast.
Regarding the official land value estimates, I have found that they only apply to price determination to a limited extent. There are houses from the 1970s on 700 sqm (7,535 sq ft) plots, partially renovated, for 440,000 €. Overall, though, that is a lot of money for many compromises we would have to accept.
We are generally considering increasing our budget; the banks would lend us significantly more money, and we could manage it, but I am not really willing to spend 650,000 € or more for a house.
The good thing is that we basically have no time pressure.
In mid-September, decisions will be made in the new development area around the corner about how many plots will be returned from reservations.
Is there anyone here who has switched from an oil/gas heating system to modern heating technology? I would be interested to know what kind of work is involved in this.
Best regards and have a nice weekend!
PeterPan1986 schrieb:
In mid-September, decisions will be made in the new development nearby about how many plots reserved will be released again. Oh, does that mean no one will move up on the waiting list – or did you mean you plan to be one of those moving up yourself?
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
Similar topics