Building or buying regarding price-performance ratio

Hello,

like many others, we too want to fulfill the dream of owning our own home and are considering whether we should build or buy with a defined budget. We already have a specific property in sight; maybe you can help us a little with the decision-making.

First of all, what we want and what we are willing to spend:

- It should be a (young) detached single-family house with solid construction
- Location about 20 KM around Moers (NRW), ideally not too rural
- Size between 150 and 180 sqm, but there must be two home offices since both of us work a lot from home (wife is a teacher) + 2 children's rooms
- A basement is not a requirement but would be nice
- Plot about 500 sqm
- If buying, then no old building but a "young" house
- We want to spend max. 400,000 euros. Financing should not be the topic here; I want to separate that from the actual fundamental decision

The core question now is whether the mentioned points can be realized with a new build and the budget. The land offers in the area are not only scarce but also not exactly cheap. For a 500 - 600 sqm plot, you already have to deduct about 150,000 from the budget. Due to the lack of reasonable offers, I also have no market transparency; I don't know if it is possible to find something cheaper.

For comparison, we have the following property on hand:

- Detached solid single-family house built in 1994
- 220 sqm living space, fully basemented
- Location Duisburg Walsum
- almost 600 sqm plot
- Underfloor heating, gas burner from the same year of construction
- Price: 340,000 euros
- Renovation work necessary

The decision is really difficult. Here is the pro evaluation for buying as I see it:

- The property is already there, so moving in is possible quickly
- Double burden is limited
- Size of the house
- Good residential area in the immediate vicinity
- Garage and garden are also ready

Contra:
- Energy-wise not up to current standards, therefore fundamentally higher heating costs; long term it could be expensive
- Energy modernization is very limited because of the full clinker brick and therefore insulation is omitted
- Duisburg is the ugliest city in Germany, although Walsum is far enough from the city center. But Duisburg is Duisburg

With a new build, I could be modern both energetically and architecturally, so building costs are ultimately uncertain. Also, there could be advantages regarding the location, but it takes relatively long to move in. From the gut, I would say it could be tight to realize everything as a new build within the budget.

What is your view?

Thank you very much.

- Detached solid single-family house built in 1994
- 220 sqm living space, fully basemented
- Location Duisburg Walsum
- just under 600 sqm plot
- Underfloor heating, gas burner from the same year
- Price: 340,000 euros
- Renovation work is required

The decision is really difficult. The following positives do I see on the pro side for purchasing:

- The property already exists, so moving in is possible quickly
- Double burdens are manageable
- Size of the house
- Good residential area in the immediate vicinity
- Garage and garden are also finished

Cons:
- Energy-wise not up to current standards, thus basically higher heating costs; in the long term, it could become expensive
- Energy modernization is strongly limited because of full clinker brickwork and thus no insulation
- Duisburg is simply the ugliest city in Germany, although Walsum is far enough from the city center. But Duisburg is Duisburg

So...
To call Duisburg Walsum a good residential area, I still think that’s an exaggeration (at most individual streets) ;) The standard land value is only about EUR 200 per sqm there. However, for the purchase price, you won’t be able to build new, although renovation costs can also become high. If, however, you work in Moers, the commute across the Rhine should not be underestimated (there are only a few bridges).

We have just built in Neukirchen-Vluyn (Niederberg), which is generally closer to Moers. Residentially, I would always prefer to stay on the left bank of the Rhine. There are still affordable plots for new builds here. But then it will be a smaller new build, which with clever planning does not have to seem too small.

More details gladly via private message, as we also searched for a long time in Duisburg (we lived there until a week ago), but found something outside of Duisburg.

So...
I consider it exaggerated to call Duisburg Walsum a good residential area (at most individual streets) ;) The standard land value there is also only an average of EUR 200 per sqm.

Hello,

that is basically correct. The house is located specifically in Alt-Walsum, which is why I only referred to the residential area as good. ;) The standard land value is 270 euros / sqm.

- Plot approx. 500 sqm - If buying, then not an old building but a "young" house - We want to spend max. 400,000 euros. However, financing should not be a topic here, I want to separate that from the actual fundamental decision

TEUR 400 will hardly work in Moers/Dui – I have been searching for a long time in the southern Duisburg area for my family – rather where Nordanney has built; although 180 sqm living space is quite something ... even on plots in Vluyn.

From the gut, I would say that it might be tight to realize all that as a new build within the budget.

You are still at the very beginning ... with increasing search for a plot, increasing talks with providers, your wishes will align with your budget ;) When buying an existing property – and honestly? I wouldn’t (voluntarily) move to Walsum – it is, in my view, absolutely necessary to have an expert inspect the property; otherwise, you might have bought a surprise package. With a new build, it is important that you don’t only look at the figure at the bottom right, but carefully compare the construction descriptions of the providers. Cheap offers always turn out to be quite expensive in the end. Very important – don’t rush your decision, whether buying an existing property or new build, and let your common sense flow in. Then the new home will work out ;) Rhenish greetings

Hello again,

The standard land value is 270 euros / sqm.

You can free yourself from that; supply and demand regulate the market. If at all, municipalities sell according to the standard land value, private sellers certainly do not ;)

Regards from the Rhineland

Thank you for the feedback

... I wouldn’t (voluntarily) move to Walsum.

May I ask why? Feel free to send me a private message. I have only been living in the area myself for three years (currently in OB), so it is difficult for me to assess individual districts. I also generally find Duisburg ugly, but so far I thought Alt-Walsum was at least quite okay (at least compared to the rest). The residential area seems alright, there are kindergartens, schools, and playgrounds, and the nearby Rheinaue is also quite nice. Well, the surrounding area gets uglier again.