ᐅ Buy a plot of land – demolish an existing building – build new?!
Created on: 7 Mar 2014 10:02
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SchnapsideeS
Schnapsidee7 Mar 2014 10:02Hello dear forum members,
I hope my question (or rather, following my username: my crazy idea) fits here.
I have the chance to buy a plot of land – currently consisting of 2 parcels (one about 400m² (4300 sq ft), the other about 1100m² (12,000 sq ft)). The smaller parcel isn’t really usable, but it’s included… so why not?!
On the larger parcel stands an old farmhouse (footprint about 250m² (2700 sq ft)). Unfortunately, the building’s footprint and the parcel boundaries don’t match – as mentioned, the parcel is about 1100m² (12,000 sq ft), but the plot is roughly twice that size (this has been the case for decades and used accordingly, with no one apparently concerned about the exact property lines). Altogether, I would end up with over 2500m² (27,000 sq ft).
I would need to acquire a piece from the neighboring plot (same owner) – that would not be a problem (it’s included in the purchase price). It would just need to be surveyed.
The owner started with a selling price of €10,000 (no, I didn’t forget a zero). Land and property are quite cheap here. (The standard land value in the area is about €15/m² (1.40 USD/sq ft)). Most people will probably say, “Dude, buy it!”
But I have a few questions and hope for your suggestions and ideas:
Is it worth buying the land? After all, it still needs to be resurveyed and everything registered.
Originally, I thought about demolishing the farmhouse (the condition is unfortunately not worth renovating – at least not economically viable or feasible for me). As mentioned, about 250m² (2700 sq ft) ground area, 2 floors plus a huge attic (which could be converted into two floors if I won the lottery – but I don’t want that!). So, on top of the purchase price, there would be demolition costs, which I cannot estimate.
The next idea was to build a new single-family house on the existing foundations, preferably a single-story (even at 30 years old, you start thinking about the future). There is plenty of space. I think (hope, believe… but have no clue) this might save costs.
What do you think? Is it feasible or unrealistic? What conditions should be met?
PS: On the property there is also a row of garages (7 garages – users pay a small annual rent), plus one large garage and a big shed behind the house, both of which are usable.
Many thanks for your replies!
I hope my question (or rather, following my username: my crazy idea) fits here.
I have the chance to buy a plot of land – currently consisting of 2 parcels (one about 400m² (4300 sq ft), the other about 1100m² (12,000 sq ft)). The smaller parcel isn’t really usable, but it’s included… so why not?!
On the larger parcel stands an old farmhouse (footprint about 250m² (2700 sq ft)). Unfortunately, the building’s footprint and the parcel boundaries don’t match – as mentioned, the parcel is about 1100m² (12,000 sq ft), but the plot is roughly twice that size (this has been the case for decades and used accordingly, with no one apparently concerned about the exact property lines). Altogether, I would end up with over 2500m² (27,000 sq ft).
I would need to acquire a piece from the neighboring plot (same owner) – that would not be a problem (it’s included in the purchase price). It would just need to be surveyed.
The owner started with a selling price of €10,000 (no, I didn’t forget a zero). Land and property are quite cheap here. (The standard land value in the area is about €15/m² (1.40 USD/sq ft)). Most people will probably say, “Dude, buy it!”
But I have a few questions and hope for your suggestions and ideas:
Is it worth buying the land? After all, it still needs to be resurveyed and everything registered.
Originally, I thought about demolishing the farmhouse (the condition is unfortunately not worth renovating – at least not economically viable or feasible for me). As mentioned, about 250m² (2700 sq ft) ground area, 2 floors plus a huge attic (which could be converted into two floors if I won the lottery – but I don’t want that!). So, on top of the purchase price, there would be demolition costs, which I cannot estimate.
The next idea was to build a new single-family house on the existing foundations, preferably a single-story (even at 30 years old, you start thinking about the future). There is plenty of space. I think (hope, believe… but have no clue) this might save costs.
What do you think? Is it feasible or unrealistic? What conditions should be met?
PS: On the property there is also a row of garages (7 garages – users pay a small annual rent), plus one large garage and a big shed behind the house, both of which are usable.
Many thanks for your replies!
Hello Schnapsidee,
I would consult an architect regarding the demolition costs and the possibility of using the existing foundations. In the worst case, you’ll have spent a few hundred euros on the architect’s fees, but you could save at least €25,000.
Surveying shouldn’t be very expensive; any licensed surveyor in your state can provide you with accurate cost estimates.
Best regards,
Dirk Grafe
I would consult an architect regarding the demolition costs and the possibility of using the existing foundations. In the worst case, you’ll have spent a few hundred euros on the architect’s fees, but you could save at least €25,000.
Surveying shouldn’t be very expensive; any licensed surveyor in your state can provide you with accurate cost estimates.
Best regards,
Dirk Grafe
aytex schrieb:
may I ask where you can get land for 15€/sqm In quite a few villages. But you probably wouldn’t want to live there.
S
Schnapsidee7 Mar 2014 19:15Thanks first of all for your replies!
My plan looked roughly the same. I wanted to consult a civil engineer regarding the demolition (a rough estimate of the costs). A friend pointed out that such a large building produces a lot of construction debris that needs to be disposed of. The costs are therefore significantly higher than demolishing a single-family house or similar.
In the end, I calculated this way: without the building, the plot itself is still worth €25,000 (probably more), even if it falls below the building reference value. The purchase price can probably be negotiated down to just under €10,000, but then surveying fees and additional incidental costs come on top anyway. So only about €15,000 “remains” for the demolition, at least if you don’t want to lose money. And as a layperson, I would say that’s not enough, even if you contribute your own labor.
A little something about the location: yes, it’s in a village, but it’s my home and I feel comfortable here. You have to want to live here, that’s true. But everyone has different ideas, right?!
I wish you all a great start to the weekend.
My plan looked roughly the same. I wanted to consult a civil engineer regarding the demolition (a rough estimate of the costs). A friend pointed out that such a large building produces a lot of construction debris that needs to be disposed of. The costs are therefore significantly higher than demolishing a single-family house or similar.
In the end, I calculated this way: without the building, the plot itself is still worth €25,000 (probably more), even if it falls below the building reference value. The purchase price can probably be negotiated down to just under €10,000, but then surveying fees and additional incidental costs come on top anyway. So only about €15,000 “remains” for the demolition, at least if you don’t want to lose money. And as a layperson, I would say that’s not enough, even if you contribute your own labor.
A little something about the location: yes, it’s in a village, but it’s my home and I feel comfortable here. You have to want to live here, that’s true. But everyone has different ideas, right?!
I wish you all a great start to the weekend.
Professionals approach marketable properties by deducting demolition costs from the land benchmark value, which results in the probable selling price (PSP). With this model, in your example, you quickly arrive at €0. However, your plot is probably not marketable, and on top of that, you intend to use it yourself – in such cases, the calculation is always different.
Best regards,
Dirk Grafe
Best regards,
Dirk Grafe
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