ᐅ Renovate an old house or build a new one?

We are considering whether to renovate an old house or have a new one built!

The "old" detached single-family house, built in 1977, (external dimensions 10x10m (33x33 feet)) is situated on a very small plot. I estimate the living area to be around 150 m² (1,615 sq ft).
Brief overview of the features:
Basement with 2 medium-sized utility rooms, a party room, and a bathroom,
Ground floor with a large living/dining area including a fireplace, small kitchen, and bathroom,
1st floor with 3 rooms and a bathroom (all rooms have steep sloping ceilings),
Attic.

We would only be able to take over the house with an outstanding loan of about 100,000 euros within the family.

However, there are many tasks to be done:

completely new exterior cladding,
an alternative needs to be found for a wall element made of glass blocks, as it looks very outdated,
new underfloor heating on ground and first floors,
complete bathroom renovations on both floors,
new kitchen with a wall removed to connect it to the living area,
sauna planned in the old basement bathroom,
party room fully renovated,
of course, new wallpaper throughout the house,
the floors can stay as they are for now.

I’m not sure if we might be in a better financial position to just buy a new house directly or have one built exactly the way we want.
Maybe there are experienced people here who could give me some tips, including how to get an idea of the costs involved in renovation versus new construction.

Hello Lisa!!

Well, you have a very difficult assessment ahead of you. The main issue for me is, first of all, the condition of the foundation walls, soil conditions, roof structure and covering, and so on. Then, how do the plumbing, electrical wiring, and heating systems look?

These were just a few points from my side, but I can imagine that a major renovation might become expensive, and you should carefully consider whether it might be better to demolish the house and rebuild it from scratch.

My advice to you: take your time with everything, don’t rush, and calculate everything carefully.

Best regards.

For a house built in 1977, it’s worth considering insulation improvements. This can become quite complex. Additionally, you should expect some significant expenses in the coming years, such as roof, electrical system, other wiring, and facade.

With a 1977 build year and 100,000 euros remaining debt, I wonder what the total costs were.

For a new build, you should expect around 1,200€ - 1,600€ per square meter (about 11 to 15 USD per square foot) of living space until you have a move-in ready house.

Renovating an old house can often require much more work than building a new one. If you know someone who specializes in renovations, it might be worth considering, but generally, I would recommend building new rather than renovating. Especially with the new regulations, I wouldn’t hesitate twice.

Hi everyone!

I also think that with the tasks you mentioned, costs can add up quickly. The alternative is that you do a lot of the work yourselves. However, you should have some technical knowledge in that case.
We decided to buy and renovate a 100-year-old house instead of building a new one. In that case, the price and plot size are reasonable. We will probably do most of the work ourselves or with friends, since many things would otherwise be unaffordable.
Regards,
Peter

Hello LisaR!
In a situation like this, I would always recommend getting an independent cost assessment whenever possible. It might also be useful to check which subsidies or grants are available and what can be activated as personal contribution.

Then you have concrete facts to base your decision on.
Of course, there are other factors as well, such as residential location, cherished heirlooms, family home, proximity to work, and so on.

Best regards