ᐅ Building vs. Buying in Terms of Value for Money

Hello,

like many others, we want to fulfill the dream of owning our own home and are considering whether it’s better to build or buy with a defined budget. We already have a specific property in mind, and maybe you can help us with the decision.

First, here’s what we want and what we’re willing to spend:

- It should be a (new) detached single-family house built with solid construction
- Location about 20 km (12 miles) around Moers (North Rhine-Westphalia), ideally not too rural
- Size between 150 and 180 sqm (1,615 to 1,940 sq ft), but there must be two home offices, as both of us work a lot from home (my wife is a teacher) plus 2 children’s bedrooms
- A basement is not a must, but would be nice
- Plot size about 500 sqm (5,400 sq ft)
- If buying, then no old buildings but a “young” house
- Maximum budget is 400,000 euros. Financing is not the topic here, as I want to separate that from the fundamental decision

The main question now is whether these requirements can be met with a new build within the budget. The land offers in the area are not only scarce but also quite expensive. For a 500–600 sqm (5,400–6,500 sq ft) plot, you have to subtract about 150,000 from the budget. Due to the lack of reasonable offers, I also have no market transparency and don’t know if it could be done cheaper.

For comparison, here is the property we have at hand:

- Detached solid single-family house built in 1994
- 220 sqm (2,370 sq ft) living space, fully basemented
- Location Duisburg Walsum
- Almost 600 sqm (6,500 sq ft) plot
- Underfloor heating, gas burner from the same year
- Price: 340,000 euros
- Renovation work is required

The decision is really difficult. On the pro side for buying, I see the following:

- Property is already there, so move-in is possible quickly
- Double burdens are limited
- Size of the house
- Good residential area nearby
- Garage and garden are already completed

Cons:
- Energy standard is outdated, so heating costs are generally higher; it could get expensive in the long term
- Energy upgrade options are very limited due to full brick construction and no insulation possible
- Duisburg is known to be one of the least attractive cities in Germany, though Walsum is far enough from the downtown area. But Duisburg is still Duisburg

With a new build, I could have modern energy standards and architecture, so the building costs are uncertain in the end. Also, there might be advantages in location, but the move-in would take relatively long. From gut feeling, I would say the budget could be tight to realize everything with a new build.

What do you think?

Thank you.

BlackBandit schrieb:


- Detached solid single-family house built in 1994
- 220 sqm (2,368 sq ft) living area, fully basemented
- Location: Duisburg Walsum
- Nearly 600 sqm (6,458 sq ft) plot
- Underfloor heating, gas burner from the same year
- Price: 340,000 Euro
- Renovation work required

The decision is really difficult. Here is my evaluation of the pros for purchasing:

- The property already exists, so move-in is possible quickly
- Limited risk of double housing costs
- Size of the house
- Good residential area in the immediate vicinity
- Garage and garden are also ready

Cons:
- Energy performance is outdated, so heating costs are generally higher; this could become expensive in the long term
- Energy-related modernization is severely limited because of the full brick exterior, so insulation is not feasible
- Duisburg is arguably the ugliest city in Germany, although Walsum is far enough away from the city center. But Duisburg is Duisburg

Well...
Calling Duisburg Walsum a good residential area seems a bit exaggerated (at best a few streets) 😉 The average land value there is only about 200 Euro per sqm (19 USD per sq ft). With that purchase price, you certainly wouldn’t be able to build new, and renovation costs can also quickly rise. However, if you work in Moers, the commute across the Rhine should not be underestimated (there are only a few bridges).

We recently built in Neukirchen-Vluyn (Niederberg), which is generally closer to Moers. From a living perspective, I would always prefer to stay on the left bank of the Rhine. There are still affordable plots available there for new builds. The new build would be smaller but can still feel spacious with smart planning.

More details gladly via private message, as we searched for a long time in Duisburg (we lived there until a week ago) but found something outside Duisburg.

nordanney schrieb:
So...
I think calling Duisburg Walsum a good residential area is a bit exaggerated (at most some streets) 😉 The standard land value there is only around EUR 200 per square meter.

Hello,

that is basically correct. The house is specifically located in Alt-Walsum, which is why I only referred to the neighborhood as good. 😉 The standard land value is 270 euros per sqm (around 25 dollars per sq ft).

BlackBandit schrieb:

- Plot size approx. 500 sqm (5,380 sq ft)
- If buying, then not an old building but a “young” house
- We want to spend max. 400,000 euros. Financing is not the topic here; I want to separate that from the fundamental decision

EUR 400,000 will hardly work in Moers/Germany – I have been searching for a long time in the south of Duisburg for my family – more likely where Nordanney has built; although 180 sqm (1,938 sq ft) of living space is quite a lot… even on plots in Vluyn.

BlackBandit schrieb:

From my gut feeling, I would say it could be tight to realize all this as a new build within your budget.

You are still at the very beginning… as you keep looking for a plot and have more discussions with sellers, your wishes will gradually align with your budget 😉

When buying an existing property – and to be honest, I would not (willingly) move to Walsum – it is absolutely necessary, in my opinion, to have an expert inspect the property; otherwise, you might end up buying a real “surprise package.” For a new build, it is important that you don’t just focus on the price at the bottom right, but carefully compare the builders’ specifications. Cheap offers always end up being quite expensive in the long run.

Very important – do not rush your decision, whether buying an existing property or a new build, and make sure to apply your common sense. Then your new home will work out fine 😉

Best regards, Bauexperte

Hello again,

BlackBandit schrieb:

The standard land value is 270 euros / sqm.

You can disregard that; supply and demand determine the market. If anything, municipalities sell according to the standard land value, but private sellers definitely do not 😉

Regards, Bauexperte

Thank you for the feedback.

Bauexperte schrieb:
... I would not (voluntarily) move to Walsum.

May I ask why? Feel free to reply via private message. I have only lived in the area myself for three years (currently in OB), so it is difficult for me to assess individual neighborhoods. I find Duisburg generally unattractive, but so far I thought Old Walsum was at least quite okay (at least compared to the rest). The residential area seems fine, there are kindergartens, schools, and playgrounds available, and the nearby Rheinaue park is also quite nice. Admittedly, the surroundings get less attractive further out.