Hello Dear Home Building Forum Community,
First of all, Happy New Year!
It is still quite early since we are not yet sure if either of the two properties will definitely work out, but I have a fundamental question and would like to gather some feedback.
So, option 1:
- Existing property with approximately 700 m² (8,400 sq ft) plot, just under 160 m² (1,720 sq ft) living space, built in 1940, garage, partially basemented. It seems to be in relatively good condition, but the layout is not ideal for our plans and we would need to invest a lot in the coming years (more/larger windows, extension, different walls, new staircase, underfloor heating). Short-term livability would probably be possible, even the kitchen with appliances could be taken over.
Option 2:
- Newly built semi-detached house, 400 m² (4,300 sq ft) plot, 150 m² (1,615 sq ft) living space, adaptable floor plan, modern upscale finish, flooring in living areas and painting still require DIY work, kitchen is an additional cost but there is a 1000 EUR kitchen voucher (wow! ).
The location is similar, although I prefer location 1, and my partner prefers location 2.
Financially, both options are quite similar; the nominal amount is higher for option 2 initially, but with option 1, a lot still needs to be invested, which from my perspective balances it out.
My question is more about risk.
Where do you see the greater risks for possible additional costs/efforts, or total losses?
For example, can a building inspector really identify all flaws in such an old property?
On the other hand, I have already learned from reading the forum how much can go wrong during house construction, and how unforeseen additional costs, necessary refinancing, etc., can threaten entire livelihoods.
I appreciate opinions, experiences, advice, and any other tips.
Thank you in advance for your contributions.
Best regards
Tolentino
First of all, Happy New Year!
It is still quite early since we are not yet sure if either of the two properties will definitely work out, but I have a fundamental question and would like to gather some feedback.
So, option 1:
- Existing property with approximately 700 m² (8,400 sq ft) plot, just under 160 m² (1,720 sq ft) living space, built in 1940, garage, partially basemented. It seems to be in relatively good condition, but the layout is not ideal for our plans and we would need to invest a lot in the coming years (more/larger windows, extension, different walls, new staircase, underfloor heating). Short-term livability would probably be possible, even the kitchen with appliances could be taken over.
Option 2:
- Newly built semi-detached house, 400 m² (4,300 sq ft) plot, 150 m² (1,615 sq ft) living space, adaptable floor plan, modern upscale finish, flooring in living areas and painting still require DIY work, kitchen is an additional cost but there is a 1000 EUR kitchen voucher (wow! ).
The location is similar, although I prefer location 1, and my partner prefers location 2.
Financially, both options are quite similar; the nominal amount is higher for option 2 initially, but with option 1, a lot still needs to be invested, which from my perspective balances it out.
My question is more about risk.
Where do you see the greater risks for possible additional costs/efforts, or total losses?
For example, can a building inspector really identify all flaws in such an old property?
On the other hand, I have already learned from reading the forum how much can go wrong during house construction, and how unforeseen additional costs, necessary refinancing, etc., can threaten entire livelihoods.
I appreciate opinions, experiences, advice, and any other tips.
Thank you in advance for your contributions.
Best regards
Tolentino
H
hausbauer2 Jan 2020 11:49Older buildings are generally more cost-effective, especially if you can do a lot of the work yourself.
1: 520,000 EUR
2: 550,000 EUR
Both prices exclude purchase-related additional costs (option 1 is slightly more expensive because the broker fee applies to the entire amount, while in option 2 it only applies to the land portion).
For option 1, potential renovation costs may be added (which could be phased over time; for initial habitability, only a kitchen needs to be converted into a room).
For option 2, costs for flooring, painting, landscaping, and possibly higher ancillary construction costs than those estimated in the offer might be incurred.
2: 550,000 EUR
Both prices exclude purchase-related additional costs (option 1 is slightly more expensive because the broker fee applies to the entire amount, while in option 2 it only applies to the land portion).
For option 1, potential renovation costs may be added (which could be phased over time; for initial habitability, only a kitchen needs to be converted into a room).
For option 2, costs for flooring, painting, landscaping, and possibly higher ancillary construction costs than those estimated in the offer might be incurred.
Hausbauer schrieb:
Older buildings are generally cheaper, especially if you can do a lot of the work yourself. Well, not me personally. Willing, but no experience (only laminate flooring and painting) and very little time (sole earner). Schwiepa can do almost everything (trained electrician, has renovated an older building himself) but lives two hours away and is also working. Willingness, probably yes in principle, but not unlimited. Partner is willing and motivated, normally skilled but not very physically strong.
Pinky0301 schrieb:
Hard to compare since the plot of land is bigger in option 1. But you won’t get the mentioned work done for 30k. I understand, but it’s not just the 30k.
For the new build (2), you also have the floor and painting costs (+10-20k, depending on subcontractors?), landscaping (+10-20k?) and possible additional costs during construction.
The other thing is that with the older building (1), you could phase or postpone some of the work. Habitability would be ensured initially.
By the way, I’m in Berlin (both properties also), where forecasts for the coming years expect price increases of 30-40% per year…
My question here is also about possible risks of new builds vs. older buildings. Where are additional costs more likely, or even a total loss?
And a bit also, what would you do and why?
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