Build new or buy old??

We are thinking of having an expert inspect the old house for 250 euros.

Very good decision! Rhineland greetings

Is the question whether old or new is generally better (of course everyone has a different opinion on that) or just specifically in this case? Generally: I prefer old. Especially since you can get an old building for significantly less – a fraction – of the cost of a new build. A new build will always cost a certain minimum amount, plus the land. You will never get it for, for example, less than 150,000 euros; reading some comments here, one might as well say never less than 300k – and that’s just the house. You can get an old building even in urban areas for less than 200k. Also quite possibly in good condition, although not up to the latest standards, of course. With old buildings, the question is more about how much you want to invest additionally, how much luxury you need. You can certainly live in a house from 1970 in its original condition if you have the appropriate level of modesty; plenty of (older) people do. That’s the crux if you have little money, absolutely want something of your own, and are willing to make compromises. Then you can also purchase a house for around 150k euros – of course, also for significantly less, but I’m not talking about bargain demolition shacks here. That simply doesn’t work with a new build. Added to that is the established neighborhood – some people get nauseous in typical new development areas and wouldn’t move there even if it were given away. And the mature plot – not everyone wants a leveled one either. But money is probably the most important factor. You can renovate an old building very cheaply in terms of interest (we still paid 0.7% in 2012, now it’s more like 0.25%). There are also better subsidies, e.g., from [BAFA] for a new heating system. You can take your time and do everything step by step and meanwhile already live in your own property. However, if everything must be technically up to date and you absolutely don’t want to do anything yourself anymore but just move in, then you can also invest three times as much and have a new build put up for you. It’s simply a matter of taste.

I would always tend to go for the old building if the foundation is reasonable, although in my opinion that is more a matter of attitude. Huge advantage: the residential area and the gardens are usually already finished.

What would bother me here is the price expectation of the community of heirs or your budget in connection with the repair backlog. You might get by with 70,000€ if the appraiser finds nothing other than the obvious defects and the insulation is actually not improvable - which I can hardly imagine.

Communities of heirs are often difficult as well: if one of the heirs would like to have the money (quickly) and another is not dependent on it, then the second one drives the price up - often beyond the actual market price. It can easily take a few years until this settles. The question is whether you have the time for that or how long the house has already been on the market.

I wouldn’t be surprised, therefore, if the appraiser already estimates the entry price of 300,000€ as too high, but you will see that.

Best regards
Dirk Grafe

I'll put it this way, I can say that I'll have the appraiser take a look for 250 euros so that I know if it's worth bidding, BUT I'm not the only interested party, there are about 5, and the community of heirs had listed the house through the realtor at 380,000 euros. No one responded to that, and then the new minimum price of 300,000 was set...... they will get what they can, and I won't pay more than 308,000 for it...

That confirms my statement: if you already reduce the purchase price by €80K (~21%) on your own, then people simply do not know what the property is worth. Wait for the appraiser's statement, then continue calmly. Other interested parties do not matter; if they pay too much, that is not your loss.

Best regards
Dirk Grafe

I would always tend to choose an old building if the basics are reasonable, although in my opinion it is more a matter of attitude. Huge advantage: the residential area and the gardens are usually already finished.

A new development area also has its charm. Many of us here are of a similar age with children of the same age, and everything is new, so contacts naturally develop. One accepts that there is sometimes construction noise on weekends. And I can design the house and garden the way I want it, not how the previous owner wanted it.

In an old residential area, there might mainly be retirees without children, and you are always "the new one," intruding into an existing community. In the worst case, you might be disliked from the start because of children’s noise and construction noise.