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
Regarding some of the rather apocalyptic views about small towns and their decline, I’d like to offer a counterexample ^^
Here we have a small town of about 77,000 inhabitants, with neither suburban rail nor metro, and only a tiny train station with service in just one direction. Buses run reasonably well within the town, but once you try to reach the surrounding districts, it gets difficult, and having a car is basically necessary.
Large cities—Münster and the Ruhr area—are roughly an hour away, and the Dutch border can be reached in about 5 to 15 minutes depending on the location.
The infrastructure includes everything you need, which is very helpful, yet all the districts still retain a village-like character.
And despite all that—which for many here would already be considered a disaster—the people here are building like crazy. It is practically impossible to get a building plot at all; they are quite expensive for such a “small town” (starting from 160 to 500 per square meter), yet everyone who can obtain one is building.
The new housing estates are overflowing with young families with children, so it seems many people still want to move “to the countryside,” since the districts where new developments are approved rarely have more than a kindergarten, and sometimes still a primary school.
So dear Te, I completely understand wanting to live in a place like this.
Here we have a small town of about 77,000 inhabitants, with neither suburban rail nor metro, and only a tiny train station with service in just one direction. Buses run reasonably well within the town, but once you try to reach the surrounding districts, it gets difficult, and having a car is basically necessary.
Large cities—Münster and the Ruhr area—are roughly an hour away, and the Dutch border can be reached in about 5 to 15 minutes depending on the location.
The infrastructure includes everything you need, which is very helpful, yet all the districts still retain a village-like character.
And despite all that—which for many here would already be considered a disaster—the people here are building like crazy. It is practically impossible to get a building plot at all; they are quite expensive for such a “small town” (starting from 160 to 500 per square meter), yet everyone who can obtain one is building.
The new housing estates are overflowing with young families with children, so it seems many people still want to move “to the countryside,” since the districts where new developments are approved rarely have more than a kindergarten, and sometimes still a primary school.
So dear Te, I completely understand wanting to live in a place like this.
I know several people in my wider circle who want to move out of the city if at all possible. Especially when children are involved – for some, also because of incidents at schools. They hope that life is more peaceful “in the countryside.” If it can also be arranged so that the commute to work isn’t too long, moving to a rural area is welcome. Friends of ours built a house last year. Before that, they lived with their three children, then aged 5, 3, and 2 years, in a less desirable part of Munich. Then they decided to build – and, partly because of the sky-high building costs in Munich, they moved a bit further out into the countryside. It’s a village setting, yet the school is right across the street, and kindergarten is one street away. They’re incredibly happy! My friend was amazed that her oldest son suddenly became a completely different kid. He quickly made friends, now with his kindergarten pals and current classmates, exploring the area and knowing every brand of tractor ^^
Sure, there is no supermarket or post office in the village; but since she commutes to work anyway, she just does those errands en route. A new supermarket with a post office and a drugstore is planned for the village soon. I think that especially when many families settle in a place, the infrastructure tends to develop “naturally” over time.
Of course, how people feel about this also depends on where they grew up. I’m a true country kid and wouldn’t want it any other way for my children. (And yes, there were times when it annoyed me so much that I moved alone to Munich after finishing school – but after a few years I had enough of that too and longed for a garden, forest, and birds again.)
Sure, there is no supermarket or post office in the village; but since she commutes to work anyway, she just does those errands en route. A new supermarket with a post office and a drugstore is planned for the village soon. I think that especially when many families settle in a place, the infrastructure tends to develop “naturally” over time.
Of course, how people feel about this also depends on where they grew up. I’m a true country kid and wouldn’t want it any other way for my children. (And yes, there were times when it annoyed me so much that I moved alone to Munich after finishing school – but after a few years I had enough of that too and longed for a garden, forest, and birds again.)
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armmitcharme7 Oct 2018 10:56@Wickie : What kind of infrastructure do you mean? Kindergarten, primary school, work, secondary schools, and leisure facilities are all nearby anyway. What more could you want? And as I said, my mother is 55 and completely healthy. When we talk about the next 40 years and say she might "not be around at some point," that's a bit silly, especially considering she helps with childcare.
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armmitcharme7 Oct 2018 11:15In general, I want to mention one thing about the commute. We previously lived and worked/studied in Berlin. My commute to work in Berlin was 70 minutes—if nothing was delayed. None of my colleagues had a commute shorter than 30 minutes.
A one-hour commute is quite normal in Berlin, and honestly, spending almost three hours a day on the subway was definitely not a great experience.
A one-hour commute is quite normal in Berlin, and honestly, spending almost three hours a day on the subway was definitely not a great experience.
C
chand19867 Oct 2018 11:16We understand that now. You just don’t usually associate it with a village of 200 people. But it sounds better than you might think.
Since building here seems ideal for you, why not find out how much the site development / utility connection costs? This way, you can estimate the overall costs of the project.
Since building here seems ideal for you, why not find out how much the site development / utility connection costs? This way, you can estimate the overall costs of the project.