Buying a bungalow, adding an extra floor, and renovating - Is it worthwhile?

Hello everyone,

we have been looking for a house in the Hamburg area for a while now, but as everywhere, it’s not so easy to find something good. We have now found a bungalow built in 1980 (150 sqm living space) which we really like in terms of location and plot. Unfortunately, the floor plan is only designed for one child, some of the windows are still original, and insulation is certainly necessary.

Our idea is to add a recessed floor in timber frame construction on top. Additionally, we would renovate everything on the ground floor (insulation, new and larger windows, new floors, new bathrooms, new doors including raising the lintel, install controlled residential ventilation, heating (gas) from 2010 should still be okay, raise the roof (room height is 238 cm)). My own cost estimate for this is around 300,000 euros. Of course, the structure and the project would need to be assessed by a professional (structural engineer, architect, etc.) before purchase.

Do you think this project makes sense or is it totally over the top to invest that much money in an existing property and it would be better to build for maybe 150,000 euros more? But then further out, because the plot would have to be correspondingly cheaper?

I’m attaching the floor plan of the bungalow and a draft floor plan for the recessed floor. The draft is mine and certainly not perfect. The room at the bottom would be removed and the stairs would be placed there instead.

Thanks Daniel

Hello, how much does the bungalow cost? If the pure extension is 300k and the purchase price is lower, banks don’t like it. Financing is always an issue there.

This barracks-style building will be torn down by the Husum heavy-duty demolisher, who also always works for Lidl, for 15 thousand. And then start anew. (Abbruch Pioch)

Clarify how the house is currently constructed with regard to wall thicknesses and materials. The floor plan of the existing structure is apparently not original, but already from a renovation dating back to the time of the windows in the current living room. This was likely a granny flat, and the current kitchen the living room. I would contact the architect again for the new renovation. How certain is it that the desired additional height of the house is allowed?

The price from the seller is currently over 600K, the standard land value for the 1050 m² plot is around 400K. However, for me, the house has no residual value of 200K, so the price would have to come down significantly. There are hardly any single-family house plots on offer, the plots 500m further have a guideline value of 600-750 EUR/m².

There are currently no building documents, the real estate agent will inspect the building files and provide me with the documents. The masonry is double-layered with 24cm inside and clinker outside.
Parts of it are apparently already from 1960 and then extended in 1980 and renovated in 2001. The bedroom window is from 1980, the rest from 2001 and 2006.

If I tear the thing down, I would have to pay at least 400K for a new build (160-180 sqm, good equipment), if I follow the prices here.

The development plan allows single-story construction, otherwise there are no restrictions. So a staggered floor should be possible. The neighboring houses all also have an attic floor.

Parts of it are probably already from 1960, then expanded in 1980 and renovated in 2001.

Yes, it may very well be that at first only the crossbar was standing, which you now want to add to.