Hello everyone,
I’m not sure if this is the right place for my question, but I’ll give it a try
We have been struggling for several months with the question of what is “better”: building a new house or buying an existing property. We currently have an existing property in sight and could also purchase a plot of land (small new development). Both options have a good location for us.
The existing property:
Detached single-family house with a granny flat (secondary dwelling),
Garage,
Small but more than sufficient garden
140 sqm (1500 sq ft) living space (+40 sqm (430 sq ft) granny flat)
800 sqm (8600 sq ft) plot
Built in 1991
Very well maintained, but nothing modernized. So still the old gas heating system, bathroom, etc. (However, the bathroom is white and in very good condition)
Purchase price around 370,000 euros, including all additional costs.
A few thousand euros would still be needed for new wallpaper and some paint. After that, our budget would be exhausted for further (not necessary) renovation work, such as a modern bathroom, nicer tiles, a new heating system (current heating costs about 2000 euros per year – roughly three times as much as for a new build), and so on. (Of course, reserves for any urgent repairs are still available.)
New build:
The plot (600 sqm (6500 sq ft)) would cost about 80,000 euros.
The new build, without a granny flat (so roughly the same living area of 140 sqm (1500 sq ft)), amounts to about 280,000 euros.
+ additional building costs
+ garage
+ landscaping
+ who knows what else...
So, roughly calculated, it’s more expensive.
However, we would have everything just the way we want it – the tiles, doors, windows, electrical outlets, bathroom, etc.
Also, the new build would be more energy-efficient (supposedly about 600 euros heating costs per year with gas heating due to better insulation, modern windows, modern heating system, etc.)
We are skilled DIYers, but both of us work full time and have a small child. So, there really isn’t much time to do a lot of work ourselves on a new build. With the existing property, we could theoretically move in immediately.
Do you have any tips or experiences that could help us with our decision?
Of course, I understand that we need to make the decision ourselves, but maybe there are things we haven’t considered.
Thanks in advance,
Best regards, Peter
I’m not sure if this is the right place for my question, but I’ll give it a try
We have been struggling for several months with the question of what is “better”: building a new house or buying an existing property. We currently have an existing property in sight and could also purchase a plot of land (small new development). Both options have a good location for us.
The existing property:
Detached single-family house with a granny flat (secondary dwelling),
Garage,
Small but more than sufficient garden
140 sqm (1500 sq ft) living space (+40 sqm (430 sq ft) granny flat)
800 sqm (8600 sq ft) plot
Built in 1991
Very well maintained, but nothing modernized. So still the old gas heating system, bathroom, etc. (However, the bathroom is white and in very good condition)
Purchase price around 370,000 euros, including all additional costs.
A few thousand euros would still be needed for new wallpaper and some paint. After that, our budget would be exhausted for further (not necessary) renovation work, such as a modern bathroom, nicer tiles, a new heating system (current heating costs about 2000 euros per year – roughly three times as much as for a new build), and so on. (Of course, reserves for any urgent repairs are still available.)
New build:
The plot (600 sqm (6500 sq ft)) would cost about 80,000 euros.
The new build, without a granny flat (so roughly the same living area of 140 sqm (1500 sq ft)), amounts to about 280,000 euros.
+ additional building costs
+ garage
+ landscaping
+ who knows what else...
So, roughly calculated, it’s more expensive.
However, we would have everything just the way we want it – the tiles, doors, windows, electrical outlets, bathroom, etc.
Also, the new build would be more energy-efficient (supposedly about 600 euros heating costs per year with gas heating due to better insulation, modern windows, modern heating system, etc.)
We are skilled DIYers, but both of us work full time and have a small child. So, there really isn’t much time to do a lot of work ourselves on a new build. With the existing property, we could theoretically move in immediately.
Do you have any tips or experiences that could help us with our decision?
Of course, I understand that we need to make the decision ourselves, but maybe there are things we haven’t considered.
Thanks in advance,
Best regards, Peter
You can be lucky with both options or end up disappointed.
Do you need and want a granny flat? Advantage: rental income; disadvantage: tenants, etc. If not, I would skip it and choose the new development area instead.
What is really great about our new development area is that there are many, many families with young children (ranging from 0 to 12 years old). The kids love the neighborhood, and no one complains about children playing, and so on. This wouldn’t be the case with existing homes in our town.
Do you need and want a granny flat? Advantage: rental income; disadvantage: tenants, etc. If not, I would skip it and choose the new development area instead.
What is really great about our new development area is that there are many, many families with young children (ranging from 0 to 12 years old). The kids love the neighborhood, and no one complains about children playing, and so on. This wouldn’t be the case with existing homes in our town.
D
Doc.Schnaggls9 Apr 2015 13:25Hello Peter,
We were also in a similar situation as you. However, after looking at various existing properties for 18 months, we ultimately decided to build a new house.
In our new home, everything is exactly how we wanted it – there were no compromises necessary, except for the financial deadline :cool.
One point you didn’t mention above is the issue of warranty – with a new house, as long as the construction company is still around :confused, you have five years without any hassle (and no costs) for repairs.
I also find @Wastl’s argument to be an important factor: no granny flat, no tenant, no stress! We are very happy that we can now shower, do laundry, and basically do whatever we want without having to consider other household members…
In my opinion, the extra costs for a new build in the current interest rate environment aren’t so high that they would outweigh the benefits of having a house tailored exactly to our needs.
Best regards,
Dirk
We were also in a similar situation as you. However, after looking at various existing properties for 18 months, we ultimately decided to build a new house.
In our new home, everything is exactly how we wanted it – there were no compromises necessary, except for the financial deadline :cool.
One point you didn’t mention above is the issue of warranty – with a new house, as long as the construction company is still around :confused, you have five years without any hassle (and no costs) for repairs.
I also find @Wastl’s argument to be an important factor: no granny flat, no tenant, no stress! We are very happy that we can now shower, do laundry, and basically do whatever we want without having to consider other household members…
In my opinion, the extra costs for a new build in the current interest rate environment aren’t so high that they would outweigh the benefits of having a house tailored exactly to our needs.
Best regards,
Dirk
Hello, thank you for the responses.
Basically, we like the house (the floor plan, location, outdoor area, etc. are great. We would do the tiles, bathroom, and windows differently if it were a new build), which is why it’s so difficult for us.
So far, we see the separate apartment positively. On one hand, there is rental income of approximately 300 euros that can be used for renovation, loan repayment, or whatever else. On the other hand, the utility costs are partially shared. There are no common areas; the tenant basically lives independently with a separate entrance. However, it would be possible to include these rooms as part of the main house (by creating an opening in the basement), which would give us additional rooms in case we have more children than currently planned.
We have also considered the point about children in a new development area. However, this involves only about 15 houses, and it’s impossible to know in advance who will eventually move there. That said, there are a few children living in the neighborhood of the existing property as well (which is near our current apartment).
Warranty is obviously another factor. However, I can’t imagine something suddenly breaking down – or am I underestimating this? Except for the heating system, which is 24 years old.
Basically, we like the house (the floor plan, location, outdoor area, etc. are great. We would do the tiles, bathroom, and windows differently if it were a new build), which is why it’s so difficult for us.
So far, we see the separate apartment positively. On one hand, there is rental income of approximately 300 euros that can be used for renovation, loan repayment, or whatever else. On the other hand, the utility costs are partially shared. There are no common areas; the tenant basically lives independently with a separate entrance. However, it would be possible to include these rooms as part of the main house (by creating an opening in the basement), which would give us additional rooms in case we have more children than currently planned.
We have also considered the point about children in a new development area. However, this involves only about 15 houses, and it’s impossible to know in advance who will eventually move there. That said, there are a few children living in the neighborhood of the existing property as well (which is near our current apartment).
Warranty is obviously another factor. However, I can’t imagine something suddenly breaking down – or am I underestimating this? Except for the heating system, which is 24 years old.
Does it really have to “tingle”? On one hand, it’s a great feeling when you think about the house. Imagining the beautiful garden, the large south-facing terrace with a distant view, and so on, makes you dream. We also see the advantage of being able to move in without much renovation work and construction stress.
However, there are always moments when you wonder whether it’s a good idea, and then you think the bathroom isn’t so nice, or you would actually prefer dark tiles instead of light ones, and so on… everything has its pros and cons.
At the moment, we live in a fairly modern, well-equipped apartment, so we are somewhat spoiled. Others might probably find the bathroom great.
As you can probably tell from my posts, we tend to prefer an existing property. Therefore, it’s good to hear the counterarguments here.
However, there are always moments when you wonder whether it’s a good idea, and then you think the bathroom isn’t so nice, or you would actually prefer dark tiles instead of light ones, and so on… everything has its pros and cons.
At the moment, we live in a fairly modern, well-equipped apartment, so we are somewhat spoiled. Others might probably find the bathroom great.
As you can probably tell from my posts, we tend to prefer an existing property. Therefore, it’s good to hear the counterarguments here.
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