ᐅ Build a new house or wait for an affordable home to become available?
Created on: 4 Oct 2018 23:02
A
armmitcharme
Hello everyone,
Thank you very much for taking the time.
We are completely torn and looking for opinions on our situation.
My husband and I (both 27, plus our daughter who is 11 months old) are considering building a house, even though we never really wanted to, since we are quite adaptable but definitely not decisive.
To begin with: We are both still students. I will become a doctor next May. He will study for a long time yet, but already has completed vocational training and is an excellent homemaker.
Our current savings amount to €80,000 (about $86,000). We would definitely be able to get a loan since my (very financially stable) mother would act as guarantor for us.
We have been searching for almost a year for a suitable house in the beautiful village with a population of about 200 where my mother lives. Several months ago, we were offered a house there (a verbal agreement giving us a right of first refusal, but most people hardly sell their houses here anyway, so the seller can also consider themselves lucky), once the 90-year-old mother of the potential seller can no longer live alone. She is still relatively fit, walking around outside, etc.
We want to move there, specifically so that our little girl can walk to her grandmother’s without crossing a busy road, which applies both to the new development area (about 3 building plots) and to the reasonably priced house offered to us, as they are practically opposite each other.
Details of the old house:
5 rooms, approximately 120 sqm (about 1,290 sq ft) living space
Plot size 700 sqm (about 7,535 sq ft)
3 bathrooms, but one in the shed
Last plot at the edge of the forest (undevelopable, because the forest belongs to my mother)
Huge basement with a shed
Two garages
Built in the 1970s
Inspected by an expert (though somewhat superficial), very well maintained at first impression
Renovations needed, but no major refurbishment required. We estimate immediate necessary investments of around €20,000 (about $21,500)
Lovely garden with mature trees
Cost: €68,000 (about $73,000)
Details of the new development:
Mostly flat northern slope
€9 per sqm (no typo — it’s rural and the municipality supports young families. Nine euros per sqm)
Opposite the forest (undevelopable because it belongs to my mother)
Reasons to wait:
Very low costs, no loan needed
Manageable work (we are both not professionals)
Move in without huge upfront costs
We could gradually add more “luxury,” but start simply
Charm of the old house
The house is worth more than we would pay for it
Reasons against waiting:
We might end up waiting forever
One room is a walk-through
No matter what we do, it won’t be as environmentally friendly as a good new build
The house is not perfect
Reasons to build new:
It feels terrible to “take” the house away from the elderly woman
We could start planning immediately
I will have plenty of time for this over the next six months, but not after that
We could customize a lot according to our wishes
The plots are beautiful and practically a gift
We could build a passive house
Reasons against building new:
Costs are approximately €300,000 (about $323,000) if we are lucky — meaning debt
In this region, property usually never recovers its construction price
An overwhelming number of decisions
Neither of us are experts and could easily be taken advantage of
Any “luxury” must be financed upfront
“If you’re going to build, build properly?” — costs, costs, costs
Building doesn’t happen quickly
What we want:
At least 100 sqm (about 1,075 sq ft), maximum 135 sqm (about 1,450 sq ft)
At least 5 rooms (a second child is planned)
Preferably a low-energy house
2 bathrooms (one can be very small, just some backup option)
Not too much hassle
What I mean by luxury:
A tiled stove (very cozy, and since the forest is family-owned, we get wood extremely cheaply)
The infrastructure — daycare, primary school, proximity to future work, etc. — is ideal for us despite, or because of, the very rural location. But property prices in our very rural area are very low, so we don’t view the potential house as an investment but as a place to settle down. The chance of one of the approximately 10 other suitable houses in the village becoming available by chance seems very low to us.
What would you do?
What would you advise a friend?
We are completely uncertain!
Thank you very much for your help, and have a nice evening!
Anne
Thank you very much for taking the time.
We are completely torn and looking for opinions on our situation.
My husband and I (both 27, plus our daughter who is 11 months old) are considering building a house, even though we never really wanted to, since we are quite adaptable but definitely not decisive.
To begin with: We are both still students. I will become a doctor next May. He will study for a long time yet, but already has completed vocational training and is an excellent homemaker.
Our current savings amount to €80,000 (about $86,000). We would definitely be able to get a loan since my (very financially stable) mother would act as guarantor for us.
We have been searching for almost a year for a suitable house in the beautiful village with a population of about 200 where my mother lives. Several months ago, we were offered a house there (a verbal agreement giving us a right of first refusal, but most people hardly sell their houses here anyway, so the seller can also consider themselves lucky), once the 90-year-old mother of the potential seller can no longer live alone. She is still relatively fit, walking around outside, etc.
We want to move there, specifically so that our little girl can walk to her grandmother’s without crossing a busy road, which applies both to the new development area (about 3 building plots) and to the reasonably priced house offered to us, as they are practically opposite each other.
Details of the old house:
5 rooms, approximately 120 sqm (about 1,290 sq ft) living space
Plot size 700 sqm (about 7,535 sq ft)
3 bathrooms, but one in the shed
Last plot at the edge of the forest (undevelopable, because the forest belongs to my mother)
Huge basement with a shed
Two garages
Built in the 1970s
Inspected by an expert (though somewhat superficial), very well maintained at first impression
Renovations needed, but no major refurbishment required. We estimate immediate necessary investments of around €20,000 (about $21,500)
Lovely garden with mature trees
Cost: €68,000 (about $73,000)
Details of the new development:
Mostly flat northern slope
€9 per sqm (no typo — it’s rural and the municipality supports young families. Nine euros per sqm)
Opposite the forest (undevelopable because it belongs to my mother)
Reasons to wait:
Very low costs, no loan needed
Manageable work (we are both not professionals)
Move in without huge upfront costs
We could gradually add more “luxury,” but start simply
Charm of the old house
The house is worth more than we would pay for it
Reasons against waiting:
We might end up waiting forever
One room is a walk-through
No matter what we do, it won’t be as environmentally friendly as a good new build
The house is not perfect
Reasons to build new:
It feels terrible to “take” the house away from the elderly woman
We could start planning immediately
I will have plenty of time for this over the next six months, but not after that
We could customize a lot according to our wishes
The plots are beautiful and practically a gift
We could build a passive house
Reasons against building new:
Costs are approximately €300,000 (about $323,000) if we are lucky — meaning debt
In this region, property usually never recovers its construction price
An overwhelming number of decisions
Neither of us are experts and could easily be taken advantage of
Any “luxury” must be financed upfront
“If you’re going to build, build properly?” — costs, costs, costs
Building doesn’t happen quickly
What we want:
At least 100 sqm (about 1,075 sq ft), maximum 135 sqm (about 1,450 sq ft)
At least 5 rooms (a second child is planned)
Preferably a low-energy house
2 bathrooms (one can be very small, just some backup option)
Not too much hassle
What I mean by luxury:
A tiled stove (very cozy, and since the forest is family-owned, we get wood extremely cheaply)
The infrastructure — daycare, primary school, proximity to future work, etc. — is ideal for us despite, or because of, the very rural location. But property prices in our very rural area are very low, so we don’t view the potential house as an investment but as a place to settle down. The chance of one of the approximately 10 other suitable houses in the village becoming available by chance seems very low to us.
What would you do?
What would you advise a friend?
We are completely uncertain!
Thank you very much for your help, and have a nice evening!
Anne
B
boxandroof5 Oct 2018 22:13If I were you, I would buy instead of build:
1. Financially, buying seems much more reasonable based on the information you provided, especially since you are young and a lot can still change.
2. Passive house or not, it doesn’t seem to be your dream to build yourself. So why spend the money in an economically weak area?
I don’t have a solution for the "waiting" either. As for how, where, and with whom you want to live, I’ll refrain from commenting.
1. Financially, buying seems much more reasonable based on the information you provided, especially since you are young and a lot can still change.
2. Passive house or not, it doesn’t seem to be your dream to build yourself. So why spend the money in an economically weak area?
I don’t have a solution for the "waiting" either. As for how, where, and with whom you want to live, I’ll refrain from commenting.
A
armmitcharme5 Oct 2018 22:57@nordanney I already know all that; I wrote it myself in my post, which is why the
Mottenhausen schrieb:
So if the infrastructure like schools and so on is in place, plus the described proximity to Cologne and Bonn... then even the "twice as high costs" of 18€/sqm (about $18/sq ft) are such a bargain that I would honestly want to buy everything immediately. That’s what I honestly recommend to you, before someone else gets wind of it. Regardless of whether the municipality favors families... as soon as the first major investor waves the money around, those principles are quickly forgotten. The described proximity to Cologne and Bonn, yeah right. So you consider 50 minutes to Bonn and 1 hour 10 minutes to Cologne as close? Would Landshut then be part of the Munich metropolitan area for you or what?
Well, this thread is getting a bit off track, and I’ve contributed to that as well.
Let’s summarize the facts:
- Waiting for the nice elderly lady to move out only makes financial sense; it doesn’t fit the reality of a young couple with a small child.
- There are no other existing properties for sale in the village.
- Their happiness depends on living exactly in this village.
- The building plot is practically being given away, with development costs certainly to be added. I would roughly estimate €40/m² (about $44/yd²), which is still a bargain.
- The mother is wealthy and is guarantor for the loan, which otherwise would not be feasible.
Conclusion: build and be happy.
Let’s summarize the facts:
- Waiting for the nice elderly lady to move out only makes financial sense; it doesn’t fit the reality of a young couple with a small child.
- There are no other existing properties for sale in the village.
- Their happiness depends on living exactly in this village.
- The building plot is practically being given away, with development costs certainly to be added. I would roughly estimate €40/m² (about $44/yd²), which is still a bargain.
- The mother is wealthy and is guarantor for the loan, which otherwise would not be feasible.
Conclusion: build and be happy.
boxandroof schrieb:
2. Passive house or not, it doesn’t seem to be your dream to build yourself. I think first a choice has to be made: passive house OR wood-burning stove.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
Building
Who knows how long you will have to wait.
A used house can also be renovated for energy efficiency, but a new build usually requires less maintenance. There is always something to fix in a house from the 1970s.
What about a practice and associated office space?
Definitely talk to the local authority. Here, they roll out the red carpet for you.
Talk to the banks, so you don’t end up with only the savings bank offering high interest rates.
It may be true that new construction burns money. Losses only become losses once they are realized.
As a mom comparing my quiet village to cities, I'm happy to burn money.
Who knows how long you will have to wait.
A used house can also be renovated for energy efficiency, but a new build usually requires less maintenance. There is always something to fix in a house from the 1970s.
What about a practice and associated office space?
Definitely talk to the local authority. Here, they roll out the red carpet for you.
Talk to the banks, so you don’t end up with only the savings bank offering high interest rates.
It may be true that new construction burns money. Losses only become losses once they are realized.
As a mom comparing my quiet village to cities, I'm happy to burn money.
Similar topics