ᐅ Building a New Home, Buying a House, or Renovating the Family Home – How to Make the Right Decision!
Created on: 5 Jun 2018 11:24
M
Merymery
Hello forum members,
We have been considering what the best decision for us would be for about two and a half years now.
Maybe you can help us a bit with your opinions.
I will try to briefly explain the facts:
Currently, the three of us (soon to be four in July) are living on the upper floor of my parents’ house.
Option 1:
We build in a new development area.
Costs will be around 400,000 euros (there have already been talks with the property developer).
We would then have a plot of land that is ideally sized for us. The house would be “a bit small” for the price, but acceptable.
Advantages here: we would live in town, where there are daycare/preschool/school facilities. The infrastructure is somewhat better than at our current place (which is only 3km (2 miles) away).
There are currently several young families living there (nice for children).
Disadvantages from our point of view:
We would be “leaving behind” my parents.
They can still manage the house at the moment, but this won’t work forever.
We would also like our children to grow up with their grandparents.
Another “disadvantage”: we would have more neighbors. Currently, there is only one — which we actually like.
Option 2:
Buying a house. Unfortunately, the market here is currently quite limited.
In the last two and a half years, only one house was interesting for us. Ultimately, however, it was not the “right” one.
The only advantages we see here:
It is already finished. Everything is established and potentially cheaper than building new.
Disadvantages:
We cannot predict what will come on the market.
Regarding size, plot size, location, etc…
Option 3:
We stay in my parents’ house and do some “improvements”.
The house was built in 1960. In 1980 an extension was added, along with a new heating system, windows, and doors...
Advantages:
A clear advantage here is the lower costs and thus a “more relaxed life”.
We would invest at most 200,000 euros to make it more comfortable.
We wouldn’t have to worry about money as much as we would if we built.
We would have my parents here and could support them, and the children would grow up with their grandparents.
Disadvantages:
It is located on a main road/entrance to the town (so traffic is often faster than allowed) — a current study reports around 2,000 cars passing daily.
There are almost no children of the same age in the village.
Daycare/preschool/school are 3km (2 miles) away — transportation is necessary.
Currently, we would need another room. We could get one on the ground floor, which would be used as the master bedroom.
All other rooms would be on the upper floor. We would have to live with this until my parents eventually pass away and the whole house is for us.
The plot is unfortunately very large.
This worries me a bit. So far, we are all maintaining it. When my parents are no longer here or able to do so, it may be different...
Whether we want to stay here for life (especially because of the size of the house and plot) is also a question. But of course, you can always sell a house 🙂
Now I also wonder:
Is it “worth it” to invest so much money in an “old house”?
Of course, we can make the upper floor nice and stylish, but unfortunately the house is also somewhat “complicated” in its layout.
But do you have everything exactly as you want in a new build?
Probably you will never be 100% satisfied with any option.
There are pros and cons everywhere.
What would you recommend to us, and especially why?
I hope I was able to give at least a small impression of our situation and I look forward to helpful answers.
Regards, Mery
We have been considering what the best decision for us would be for about two and a half years now.
Maybe you can help us a bit with your opinions.
I will try to briefly explain the facts:
Currently, the three of us (soon to be four in July) are living on the upper floor of my parents’ house.
Option 1:
We build in a new development area.
Costs will be around 400,000 euros (there have already been talks with the property developer).
We would then have a plot of land that is ideally sized for us. The house would be “a bit small” for the price, but acceptable.
Advantages here: we would live in town, where there are daycare/preschool/school facilities. The infrastructure is somewhat better than at our current place (which is only 3km (2 miles) away).
There are currently several young families living there (nice for children).
Disadvantages from our point of view:
We would be “leaving behind” my parents.
They can still manage the house at the moment, but this won’t work forever.
We would also like our children to grow up with their grandparents.
Another “disadvantage”: we would have more neighbors. Currently, there is only one — which we actually like.
Option 2:
Buying a house. Unfortunately, the market here is currently quite limited.
In the last two and a half years, only one house was interesting for us. Ultimately, however, it was not the “right” one.
The only advantages we see here:
It is already finished. Everything is established and potentially cheaper than building new.
Disadvantages:
We cannot predict what will come on the market.
Regarding size, plot size, location, etc…
Option 3:
We stay in my parents’ house and do some “improvements”.
The house was built in 1960. In 1980 an extension was added, along with a new heating system, windows, and doors...
Advantages:
A clear advantage here is the lower costs and thus a “more relaxed life”.
We would invest at most 200,000 euros to make it more comfortable.
We wouldn’t have to worry about money as much as we would if we built.
We would have my parents here and could support them, and the children would grow up with their grandparents.
Disadvantages:
It is located on a main road/entrance to the town (so traffic is often faster than allowed) — a current study reports around 2,000 cars passing daily.
There are almost no children of the same age in the village.
Daycare/preschool/school are 3km (2 miles) away — transportation is necessary.
Currently, we would need another room. We could get one on the ground floor, which would be used as the master bedroom.
All other rooms would be on the upper floor. We would have to live with this until my parents eventually pass away and the whole house is for us.
The plot is unfortunately very large.
This worries me a bit. So far, we are all maintaining it. When my parents are no longer here or able to do so, it may be different...
Whether we want to stay here for life (especially because of the size of the house and plot) is also a question. But of course, you can always sell a house 🙂
Now I also wonder:
Is it “worth it” to invest so much money in an “old house”?
Of course, we can make the upper floor nice and stylish, but unfortunately the house is also somewhat “complicated” in its layout.
But do you have everything exactly as you want in a new build?
Probably you will never be 100% satisfied with any option.
There are pros and cons everywhere.
What would you recommend to us, and especially why?
I hope I was able to give at least a small impression of our situation and I look forward to helpful answers.
Regards, Mery
I see some legal and, above all, emotional issues with your parents' property that could become pitfalls.
You yourself say that your father wants to transfer the property to YOU. What about your partner? Should they be included in the land registry? If your partner is not listed in the land registry, I wouldn’t co-sign a loan in their place. In case of a separation, they would still be liable for the loan but have no tangible asset to show for it (at least if no legally binding written agreements are made beforehand regarding payouts or other solutions).
The emotional aspect plays a much bigger role here than with a new purchase, where both of you could be listed in the land registry. Your parents may want to protect only you, exclude your partner from the land registry, or ensure that in case of a separation, your partner must move out and has no claims.
All of this needs to be clarified beforehand.
You yourself say that your father wants to transfer the property to YOU. What about your partner? Should they be included in the land registry? If your partner is not listed in the land registry, I wouldn’t co-sign a loan in their place. In case of a separation, they would still be liable for the loan but have no tangible asset to show for it (at least if no legally binding written agreements are made beforehand regarding payouts or other solutions).
The emotional aspect plays a much bigger role here than with a new purchase, where both of you could be listed in the land registry. Your parents may want to protect only you, exclude your partner from the land registry, or ensure that in case of a separation, your partner must move out and has no claims.
All of this needs to be clarified beforehand.
@Maria16
Yes, you might be right. It is definitely more emotional here.
We haven’t really thought much about the legal aspects so far.
And of course, a reasonable approach needs to be taken.
But I/we don’t see that as a problem.
Once we have decided WHERE we want to live, we will make sure to clarify the legal matters beforehand, in whatever form that takes.
My husband actually prefers to stay here. He primarily sees the financial benefit, which clearly outweighs other factors for him.
In the case of my parents, only my mother is listed in the land registry so far.
But well, that "arrangement" is almost 40 years old now 😀
Yes, you might be right. It is definitely more emotional here.
We haven’t really thought much about the legal aspects so far.
And of course, a reasonable approach needs to be taken.
But I/we don’t see that as a problem.
Once we have decided WHERE we want to live, we will make sure to clarify the legal matters beforehand, in whatever form that takes.
My husband actually prefers to stay here. He primarily sees the financial benefit, which clearly outweighs other factors for him.
In the case of my parents, only my mother is listed in the land registry so far.
But well, that "arrangement" is almost 40 years old now 😀
For me, the legal aspects are quite important for making a decision.
If your husband is not registered on the land title and therefore does not take out a loan with you, the possible loan amount will officially be based solely on your financial capacity. This might not be enough to renovate everything the way you both envision.
Any potential "follow-up costs" from a possible lifelong right of residence for your parents should also be clarified. This can reduce the value of the existing house, decrease the loan amount, and possibly create financial obligations if a parent needs care and has to move into a nursing home.
A completely different point: I hope your mother has a will that specifies what should happen to the house after her death. Otherwise, the statutory inheritance rules apply, and your father would inherit only a part of the house, with your brother and you receiving a share as well. Inheritance communities can cause significant conflicts, even among the best families.
Back to the house: Get legal advice on what you need to consider and talk to your parents about their expectations. For me, it is essential for decision-making to understand what is possible legally and, consequently, emotionally.
Otherwise, I don’t understand why you’ve been dealing with this topic for over two years and still haven’t made a decision if you haven’t even addressed the major "pitfalls" yet...
If your husband is not registered on the land title and therefore does not take out a loan with you, the possible loan amount will officially be based solely on your financial capacity. This might not be enough to renovate everything the way you both envision.
Any potential "follow-up costs" from a possible lifelong right of residence for your parents should also be clarified. This can reduce the value of the existing house, decrease the loan amount, and possibly create financial obligations if a parent needs care and has to move into a nursing home.
A completely different point: I hope your mother has a will that specifies what should happen to the house after her death. Otherwise, the statutory inheritance rules apply, and your father would inherit only a part of the house, with your brother and you receiving a share as well. Inheritance communities can cause significant conflicts, even among the best families.
Back to the house: Get legal advice on what you need to consider and talk to your parents about their expectations. For me, it is essential for decision-making to understand what is possible legally and, consequently, emotionally.
Otherwise, I don’t understand why you’ve been dealing with this topic for over two years and still haven’t made a decision if you haven’t even addressed the major "pitfalls" yet...
Which building authority did you contact? District office or local council?
In our case, it’s not the district office but almost everything approved by the local council. For the local council, the main thing is that at least one more family stays in the area. That is the magic phrase: we are moving away, and then many things become possible.
In our case, it’s not the district office but almost everything approved by the local council. For the local council, the main thing is that at least one more family stays in the area. That is the magic phrase: we are moving away, and then many things become possible.
@Maria16
Thank you for your advice.
We generally find it difficult to make a decision because it involves a lot of money.
The first option was to build a new house. At that time, however, we were not satisfied with the conditions and didn’t have a good feeling about it.
Then we tried to get permission to build on our own land. But that was ruled out.
After that, we looked at an existing property. It was too expensive considering we wouldn’t have been completely satisfied.
Then the idea came up to add an extension to the house. But this option was also not ideal, especially not for the costs.
I find this decision is not easy and I think it’s completely normal to go through a process of figuring it out.
Friends of ours have been searching for a house for 7 years.
If there is no time pressure, that is totally fine. We just want to get the most out of the possibilities.
For both of us, the main “stumbling blocks” are deciding HOW and WHERE we want to live and what is possible within our means so that we can live well…
In our view, there is a solution for everything else.
@haydee
Thank you for your response as well.
The municipality told us at the time that while we could submit a preliminary building application (building permit / planning permission), they advised us to have low expectations regarding the chances of approval. They said it might look a little better if we had a small-scale agricultural business…
When I asked what would happen to my parents when they get old and can no longer live independently, they told us frankly, “individual circumstances cannot be taken into account.”
We also had a conversation with a local architect who said that the chances are really, really slim.
Thank you for your advice.
We generally find it difficult to make a decision because it involves a lot of money.
The first option was to build a new house. At that time, however, we were not satisfied with the conditions and didn’t have a good feeling about it.
Then we tried to get permission to build on our own land. But that was ruled out.
After that, we looked at an existing property. It was too expensive considering we wouldn’t have been completely satisfied.
Then the idea came up to add an extension to the house. But this option was also not ideal, especially not for the costs.
I find this decision is not easy and I think it’s completely normal to go through a process of figuring it out.
Friends of ours have been searching for a house for 7 years.
If there is no time pressure, that is totally fine. We just want to get the most out of the possibilities.
For both of us, the main “stumbling blocks” are deciding HOW and WHERE we want to live and what is possible within our means so that we can live well…
In our view, there is a solution for everything else.
@haydee
Thank you for your response as well.
The municipality told us at the time that while we could submit a preliminary building application (building permit / planning permission), they advised us to have low expectations regarding the chances of approval. They said it might look a little better if we had a small-scale agricultural business…
When I asked what would happen to my parents when they get old and can no longer live independently, they told us frankly, “individual circumstances cannot be taken into account.”
We also had a conversation with a local architect who said that the chances are really, really slim.
Too bad. In our case, they are very accommodating, as long as families can stay there.
No one can take away your decision. Nor can anyone tell you how to handle it legally. Get advice on that and consider what you want and can live with, even in case of death or divorce.
Our situation was like this:
An apartment at my parents’ place. The apartment became too small, and the house is going to my sister. So that option is probably not permanent.
Clear advantage: The extended family. A baby monitor or quickly bringing the child to grandma, grandma comes by in the morning so the little one can go to daycare and I can go to work. During the colicky baby phase, I would have been lost on my own.
When you’re sick, it’s just good to have someone around to help out with a few things.
Disadvantage: My father has severe physical limitations. Help with the garden, care, etc., is difficult.
In-laws’ house. My husband would have taken it over, but it would require major investments and still wouldn’t be perfect. Otherwise, similar pros and cons as with my parents.
Big disadvantage: No daycare spot and twice the distance to work.
My grandfather’s old farm
Demolition, infill development allowed.
House as desired – but also the biggest investment.
My husband is not there during the week.
The closeness is missing then.
In February/March, I already wondered if it was the right decision.
I was sick with pneumonia, then the little one had severe bronchitis, then my parents were sick with pneumonia. My father was discharged one day before my mother, and the respite care place was not yet available. Suddenly, everything became a much bigger effort that used to go smoothly on the side.
In the meantime, everything has settled in quite well. My mother-in-law has a sleeping place when I’m sick or have appointments late in the evening.
With my parents, it’s like a shared flat, except there are three streets between us. Everything is nice, modern, spacious, and daily routines are established. It was the right decision for us.
No one can take away your decision. Nor can anyone tell you how to handle it legally. Get advice on that and consider what you want and can live with, even in case of death or divorce.
Our situation was like this:
An apartment at my parents’ place. The apartment became too small, and the house is going to my sister. So that option is probably not permanent.
Clear advantage: The extended family. A baby monitor or quickly bringing the child to grandma, grandma comes by in the morning so the little one can go to daycare and I can go to work. During the colicky baby phase, I would have been lost on my own.
When you’re sick, it’s just good to have someone around to help out with a few things.
Disadvantage: My father has severe physical limitations. Help with the garden, care, etc., is difficult.
In-laws’ house. My husband would have taken it over, but it would require major investments and still wouldn’t be perfect. Otherwise, similar pros and cons as with my parents.
Big disadvantage: No daycare spot and twice the distance to work.
My grandfather’s old farm
Demolition, infill development allowed.
House as desired – but also the biggest investment.
My husband is not there during the week.
The closeness is missing then.
In February/March, I already wondered if it was the right decision.
I was sick with pneumonia, then the little one had severe bronchitis, then my parents were sick with pneumonia. My father was discharged one day before my mother, and the respite care place was not yet available. Suddenly, everything became a much bigger effort that used to go smoothly on the side.
In the meantime, everything has settled in quite well. My mother-in-law has a sleeping place when I’m sick or have appointments late in the evening.
With my parents, it’s like a shared flat, except there are three streets between us. Everything is nice, modern, spacious, and daily routines are established. It was the right decision for us.