ᐅ Buy a plot of land – demolish an existing building – build new?!
Created on: 7 Mar 2014 10:02
S
Schnapsidee
Hello 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!
The outcome or decision was (almost) to be expected. You have to consider why the owner is offering the house with the plot (at first glance) so cheaply. The explanation is quite simple: because all potential buyers work out exactly the costs you have listed, and then the previously low purchase price no longer appears so attractive.
Best regards
Dirk Grafe
Best regards
Dirk Grafe