Hello everyone,
We bought a house built in 1909 in the Greater Stuttgart area that needs renovation because we liked the location and the plot. The plan was to completely renovate it. Now we are quite torn about whether building a new house makes more sense. Of course, I don’t expect this forum to make the decision for us 🙂 I just hope to get some input, as we are currently about 50/50 on both options.
In summary: The house can be renovated well, and all the experts who have inspected it have given positive feedback. The renovation is estimated to cost around €250,000. The question, however, is more of an economic nature: Does it really make sense to invest that much money into an old house? The plot and the zoning plan allow for a house about twice the current size. So the other idea is to demolish, build bigger, and rent out 1-2 units. The financing with the bank is also arranged. However, the potential risks of new construction and renting are causing us some concern.
I don’t want to overwhelm you with lots of details. I have summarized everything in a pros and cons list. I look forward to your input or gut feelings.
We bought a house built in 1909 in the Greater Stuttgart area that needs renovation because we liked the location and the plot. The plan was to completely renovate it. Now we are quite torn about whether building a new house makes more sense. Of course, I don’t expect this forum to make the decision for us 🙂 I just hope to get some input, as we are currently about 50/50 on both options.
In summary: The house can be renovated well, and all the experts who have inspected it have given positive feedback. The renovation is estimated to cost around €250,000. The question, however, is more of an economic nature: Does it really make sense to invest that much money into an old house? The plot and the zoning plan allow for a house about twice the current size. So the other idea is to demolish, build bigger, and rent out 1-2 units. The financing with the bank is also arranged. However, the potential risks of new construction and renting are causing us some concern.
I don’t want to overwhelm you with lots of details. I have summarized everything in a pros and cons list. I look forward to your input or gut feelings.
haydee schrieb:
Regarding the water issue: Has a new residential development been established on the hilltop in recent years or decades?No. But the neighboring house was built in 2005. Maybe its drainage system also affected our property 😀 (at least that’s their assumption due to their dry basement—they were the ones who mentioned their previously wet basement).
Before we start renovating, I want to clarify the basement situation somehow. I just don’t know how. The expert we brought in had absolutely no clue.
Try to find a specialist in old buildings for an expert assessment.
I wouldn’t worry about the basement.
Maybe it's related to the neighbor. In our area, there was flowing water in the cow barn several times a year until the 1980s. Once the new residential area was built uphill, it stopped.
For me personally, living in a multi-family house is a no-go. It wouldn’t bother you, though. What happens if a tenant pays rent irregularly? Usually just enough so you can’t evict them. That is very little—at least if you want to cover your loan payments with the rent.
We decided to go for demolition. However, our house was much older, with a barn, tractor garage, and stables. Check under the old carpets or linoleum floors. That’s where we found dry rot. It looked fine until it was removed. Problem areas were where newer building materials from the 1940s and later met the old ones.
I wouldn’t worry about the basement.
Maybe it's related to the neighbor. In our area, there was flowing water in the cow barn several times a year until the 1980s. Once the new residential area was built uphill, it stopped.
For me personally, living in a multi-family house is a no-go. It wouldn’t bother you, though. What happens if a tenant pays rent irregularly? Usually just enough so you can’t evict them. That is very little—at least if you want to cover your loan payments with the rent.
We decided to go for demolition. However, our house was much older, with a barn, tractor garage, and stables. Check under the old carpets or linoleum floors. That’s where we found dry rot. It looked fine until it was removed. Problem areas were where newer building materials from the 1940s and later met the old ones.
T
Trademark3 Feb 2021 16:57solocan schrieb:
I don’t understand. We have to handle the renovation of the single-family house ourselves. For the larger multi-family building, we need rental income. Our financial burden would remain the same. However, the risk with the multi-family building is ultimately higher. What happens if you have the wrong tenants or rent defaults, or other issues? In the end, you will have to spend more money, and success depends on more factors.
It’s not about getting nervous. I’ve already removed all the infill panels, and replacing beams would be the smaller problem. I’m just considering whether building new would be more economically sensible in the long term. Because once you’ve invested in an old building, you’ve invested. Then there’s no turning back. I’m someone who prefers “think first, then act.” That’s why I’m thinking it through. Thinking things over and consulting professionals is definitely the right and important approach. That way, your renovation can be planned as precisely as possible. I also worried a lot about things like beam replacement. The only crucial factor is the structural assessment. I stressed over this too, since we had some beams that needed replacing... the bottom line: €600 for old oak beams, and the carpenter included installation as a flat rate, so it wasn’t worthwhile to list it separately.
You should have a specialist check the moisture issue. But your budget suggests you won’t have to make many compromises during the renovation.
Of course. The house suits us. It was bought to renovate, not to demolish. And that is the most important argument for me. An old building always means accepting some compromises. You have to be willing and able to do that. But then you also gain history and character.
haydee schrieb:
For me personally, living in a multi-family house is a no-go.I feel the exact opposite: landlord in the building – never again!https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
I believe you.
In our case, the second apartment is in the same building as the landlord. A nice elderly lady, who serves as a cautionary example for anyone wanting to rent out property.
Garage: we pay rent on time.
Secondary apartment: we pay rent on time.
Single-family house: rent is just enough for them not to be evicted. She has already tried to evict them twice.
Commercial space: rent deferred due to a work ban. Whether they will manage to reopen is a good question. I hope the women succeed.
In our case, the second apartment is in the same building as the landlord. A nice elderly lady, who serves as a cautionary example for anyone wanting to rent out property.
Garage: we pay rent on time.
Secondary apartment: we pay rent on time.
Single-family house: rent is just enough for them not to be evicted. She has already tried to evict them twice.
Commercial space: rent deferred due to a work ban. Whether they will manage to reopen is a good question. I hope the women succeed.
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