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
C
chand19865 Oct 2018 14:55armmitcharme schrieb:
I don’t know what the average market price is in the nearby villages, though I somehow believe it can’t be that bad. It takes 50 minutes to Bonn, 1 hour 10 minutes to Cologne, 25 minutes to the next medium-sized town, and the closest smaller towns are reached within 15 minutes. armmitcharme schrieb:
Completely lacking infrastructure? Daycare and primary school within walking distance? Workplace 15 minutes away? Next larger city (110,000 residents) 25 minutes away?Then I must be missing something: why does the building land cost only 9€ per square meter? Within the wider catchment area of a metropolis (Cologne), another large city (Bonn), and with basic infrastructure, these prices shouldn’t exist, as far as I know. Of course, I don’t know everything.
Is there a catch that I (and maybe you?) don’t know?
If you’re able and willing to manage even life’s tougher challenges through family support and disability insurance (BU) or residual life insurance (RLV), you can build.
Personally, I would never burn that much money if I knew about it in advance, but there are differing opinions here showing that it can be seen differently.
Just a few rose-colored plush balls need to be deflated before they wrap around your brain like cotton wool:
kaho674 schrieb:
Lack of infrastructure probably even increases its demand.Until there is no longer a sufficient patient base because people have died or moved away. The original poster (OP) is young and has to work 35 to 40 years. I repeat: Such small places are very unlikely to grow; rather, they gradually rewild because, overall, more people die or leave than are replaced by romantics like those here.
kaho674 schrieb:
I’m appalled that a tram connection can be considered more important than proximity to a loved one.I’m appalled that there is no imagination to understand the constraints of people who, due to obligations and their education, must take a job that isn’t feasible without such public transport and city proximity. You’re not riding on grandma’s back to work, but maybe you can visit grandma by train?
And there are people for whom villages with 200 residents mean nothing — even family ties help only so much.
But with the OP, it’s different.
kaho674 schrieb:
How can anyone not understand that? I’m shocked that a tram connection can be more important to someone than being close to a loved one.Honestly, if I had two equivalent houses in equally good locations and the only difference was that one was near my parents/in-laws and the other at a healthy distance (100km+ (62 miles)), I would choose the second one immediately. I love my parents and also my in-laws just as much, but being stuck too close together is something I really dislike. I think it often leads to very strange behaviors and psychological effects.
I prefer having quality time together every few weeks; in my opinion, everyone gets more out of it that way.
P.S. This is just my personal opinion, and I’m completely fine with others seeing things differently.
M
Matthew035 Oct 2018 15:57How many inhabitants does the town where your practice might be located have?
Apart from that, you’ve covered everything in detail. Your love for your hometown comes through clearly, and you have sufficient equity and, above all, income. Being 25 minutes from the nearest major city, with ridiculously low land prices (the question of "why" that was raised here seems quite valid to me), and having already considered the worst-case scenarios… I think almost everything points to a nice house in the countryside!
And sure, the old lady’s house is probably well-maintained and a bargain, but making it dependent on her lifetime seems unnecessary and inappropriate… aside from the fact that her passing could still be years away and you might be sitting on pins and needles.
Wishing you much success with your decision, and please keep us updated…
Apart from that, you’ve covered everything in detail. Your love for your hometown comes through clearly, and you have sufficient equity and, above all, income. Being 25 minutes from the nearest major city, with ridiculously low land prices (the question of "why" that was raised here seems quite valid to me), and having already considered the worst-case scenarios… I think almost everything points to a nice house in the countryside!
And sure, the old lady’s house is probably well-maintained and a bargain, but making it dependent on her lifetime seems unnecessary and inappropriate… aside from the fact that her passing could still be years away and you might be sitting on pins and needles.
Wishing you much success with your decision, and please keep us updated…
montessalet schrieb:
@zaba: Is this the 5-year-old post you mentioned with the YouTube link? Try searching for “depopulation” and “mirror TV.” This is about a market with 17,000 residents. The people involved can’t sell the house and would like a bungalow for retirement. But the financial background of the original poster is different.
@katja: Nowadays, children don’t really create ties anymore. The husband of an acquaintance (kind/nice and good-looking) of my wife ended up having affairs throughout the community despite having a child until he was caught by his in-laws with his lover in their own home. They are now building as well — not the in-laws, but the new couple. Just like that, two families with children were “destroyed.”
N
nordanney5 Oct 2018 17:15Additional question: The plot costs 9 €/sqm (9 €/sq ft). How much do you still have to pay for site development? At that price, it can’t be a developed plot. Is it really that cheap in the end?
Zaba12 schrieb:
The husband of a friend (kind/nice and pleasant to look at) of my wife cheated with the community despite having a child, until he was caught by the parents-in-law in his own house with the lover. That doesn’t mean you have to split up right away. @chand1986
If kindergarten and school are this close, I assume it’s not the middle of nowhere.
Just for comparison, we don’t even have any shops or public facilities in our village—nothing at all. Still, in the last 2 years, 3 families with children have built new houses here.
As far as I know, the age pyramid will continue to shift in favor of retirees over the next 30 years. Just search online—expectations are that this trend won’t start to decline until around 2050. Everyone retiring now will remain customers of the original poster for another 30 years.
Of course, there are jobs where you’re happy to have a train connection. But the original poster is fortunate to have a choice. I enjoy that freedom—it’s great. I can only pity those who commute by train or sit in traffic jams.