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
B
Bieber08159 Apr 2015 18:51Elina schrieb:
You can probably still negotiate on the house price (a 10% discount would be the minimum for me). There are "other interested parties" and it is "the nicest plot" in the area – why would the seller want to concede?
Ok, then the standard land value will likely settle around €110 (approximately $120) and will have little to do with the "old" residential area next door. In that case, your plot price fits well. This shows that there is clearly a difference between the area of the existing property with a land value of €80 (about $87) and the new development area with approximately €110 (about $120), meaning the location is considered better in the new development. If both locations work equally well for you, I would lean towards the existing property, because less capital is tied up in the land there and with the same purchase price, more capital is invested in the house itself.
Additionally, a finished garden, possibly with shade-providing trees, is also worth its weight in gold.
You need to consider the backlog of repairs, but a bathroom from the 1990s is still a bathroom from the 1990s. Partial replacements are quite difficult, so if you plan to renovate the bathroom, it will quickly turn into a complete overhaul. Everything old would have to be removed entirely.
It is also important to note that carpets can still look good during a viewing but are usually unusable after the owners move out. On one hand, because furniture has been sitting on them for 25 years, and on the other hand, because a lot of dirt gets spread around during the move-out. For example, the carpets in our existing property still looked acceptable during the viewing but were completely worn out after the owners left. Fortunately, we had already planned for that.
Best regards,
Dirk Grafe
Additionally, a finished garden, possibly with shade-providing trees, is also worth its weight in gold.
You need to consider the backlog of repairs, but a bathroom from the 1990s is still a bathroom from the 1990s. Partial replacements are quite difficult, so if you plan to renovate the bathroom, it will quickly turn into a complete overhaul. Everything old would have to be removed entirely.
It is also important to note that carpets can still look good during a viewing but are usually unusable after the owners move out. On one hand, because furniture has been sitting on them for 25 years, and on the other hand, because a lot of dirt gets spread around during the move-out. For example, the carpets in our existing property still looked acceptable during the viewing but were completely worn out after the owners left. Fortunately, we had already planned for that.
Best regards,
Dirk Grafe
S
Schiffinho9 Apr 2015 19:51If you are financing, please also consider that for existing properties the loan-to-value ratio is usually significantly higher, as the bank bases it on the market value (not necessarily the same as the sale price) minus a safety margin for the loan-to-value ratio. This means you may need to provide substantially more equity for an existing property to secure reasonable interest terms.
A few weeks ago, we also bought an existing house built in 1992, but we won’t be moving in until the end of May… meaning we still have many weeks of anticipation and impatience ahead.
Apart from all the extra costs like notary fees, land registry fees, agent fees, and taxes, we are actually enjoying it because, due to stress reasons, we decided not to go for a new build.
Of course, there will be some surprises here and there (for example, the carpet as mentioned, or maybe the heating system will fail in two years like yours due to its age, and so on), but I think you sometimes get these with new builds too—though with new builds, you can usually rely more easily on a 5-year warranty, which isn’t possible here.
A tip regarding the heating: at least ask to see the most recent chimney sweep reports, as they should be quite informative. And definitely take any advice from building inspectors seriously!
Apart from all the extra costs like notary fees, land registry fees, agent fees, and taxes, we are actually enjoying it because, due to stress reasons, we decided not to go for a new build.
Of course, there will be some surprises here and there (for example, the carpet as mentioned, or maybe the heating system will fail in two years like yours due to its age, and so on), but I think you sometimes get these with new builds too—though with new builds, you can usually rely more easily on a 5-year warranty, which isn’t possible here.
A tip regarding the heating: at least ask to see the most recent chimney sweep reports, as they should be quite informative. And definitely take any advice from building inspectors seriously!
rupapu schrieb:
Does it really have to give you "tingles"? 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 panoramic view, and so on makes you dream. We also see the advantage of moving in without much renovation work and construction stress.No, not everyone gets tingles. Some people simply have a great feeling when they think about the house – when you can already picture your sofa in the living room in your mind, your gut has already spoken.
rupapu schrieb:
However, there are always moments when you wonder if this is a good idea, and you think the bathroom isn’t so nice, or that you’d rather have dark tiles instead of light ones, etc. – everything has its pros and cons.Those moments happen no matter what. Big steps always bring uncertainty about doing the right thing. You can always renovate the bathroom later, and light tiles will come back into style eventually. With an existing property, you usually get more than you can afford with a new build. More often than not, the garden and carport have to wait several years because of budget constraints. And not everything you want in a new house will be completed right away due to costs.
rupapu schrieb:
We currently live in a fairly modern, well-equipped apartment, so we’re a bit spoiled. Others might probably find the bathroom great.I understand that—I also had a very stylish apartment before buying a house built in 1978. The bathroom was decorated in a beige tone called Bahama beige, with second-choice tiles (there were always gray spots in the glaze :mad), the bathtub was barely big enough, there were two huge sinks, and the white uneven tiled floor was made of small onion-shaped tiles, so many grout lines—I didn’t like walking barefoot on those tiles until we completely renovated the bathroom two years later. The kitchen was also awful but new, all gray, with walls covered in some kind of plastic wallpaper. We knocked that out and turned it from sterile new into a cozy kitchen nook.
Maintenance backlog: old kitchen appliances, seals in windows and doors, silicone joints, mold in the shower grout, and so on. But in my opinion, these are not reasons to reduce the price—they are things you might want or need to replace.
Have fun with your ready-made garden wishes Yvonne
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