House construction/renovation planning, please provide feedback

Dear forum,

I am new here and have enthusiastically read many posts so far as a silent "lurker."

Now things are slowly but surely getting serious for us as well, so I would like to get some feedback from you on whether our planned approach is correct.

Specifically, we are m32, w33, and have two options: 1. Buy a new building plot and build new (the plot will be on the market in 2-3 months) 2. Buy an existing property and modernize/renovate (the house will be on the market in 1-2 months)

The following approach is in our minds: 1a: Transparency about monthly income and expenses via a household budget (we are already working on this and are almost finished) 1b: Create a must-have and nice-to-have space and room planning (we have done this, applies to both new build and existing property) 2a: Contact banks with a financial overview and equity to get financing offers (--> difficult, as we neither know the exact value of the existing property nor the final plot value); we have already obtained approximate offers via Verivox/Dr. Klein, but it is not concrete or "secure" enough for me 2b: Here we are uncertain – should we either a) approach the "big" and "small" players with our room planning and the possible plot (development plan is available) to obtain their offers and review them, or b) approach an architect with our ideas who creates a floor plan and then approach the companies? Could architects (possibly also via "a better place") also support us with possible renovation work on the existing property? 3: The further steps depend on 2, so I will not go into that yet…

In general, we want to use the time as best as possible until both options are on the market so as not to be surprised or fall behind. Your feedback would therefore be very helpful – thank you in advance! If more information is needed, please let me know!

Your question shows little preparation and little background knowledge. Against this background, I would now go to a financing advisor, determine the maximum financing amount, and then plan the new construction with an architect. From my biased perspective, this is the better way than blindly stumbling into a renovation.

1. New construction seems to be possible with a known plot of land. You can roughly calculate based on that. Purchase price of the plot + purchase incidental costs + 3,000/sqm living space + construction incidental costs (T€ 50 as a placeholder) + garage + outdoor facilities/terrace/driveway. Additionally, a budget item for possibly new furniture, kitchen, garden tools, lamps, etc. (which initially has nothing to do with the house costs). 2. It seems there is not yet a concrete house available. Therefore, it is impossible to make an assessment. 3. Financing depends on the costs from 1 or 2. Just roughly calculate according to 1 and go to your house bank or a broker to verify your budget. Whether in the end it is a standard house, an "architect" house, or a renovation depends greatly on your wishes and your financial situation. And on the size of the plot. I do not know your local prices, but between 400 and 600 sqm of land there can already be a new Bentley. Or just a bigger pizza, if you build in the middle of nowhere.

2. It seems there is not yet any specific house available.

to

2. Buy an existing property and modernize/renovate it (house will be on the market in 1-2 months)

there also seems to be an object already. So check whether the desired room plan fits and determine the need for renovation.

So I consider starting with a household budget book to be sensible. Banks generally calculate with flat rates for living expenses at first. However, the flat rates do not always apply. Expensive hobbies like horses, Harley-Davidson, eating out daily, traveling, etc., prove the flat rates wrong and in the end, you get it wrong.

I have always done it this way: I kept (and keep) a detailed book about fixed costs, savings rate, variable savings rate, etc. Then amount X remained which I could practically finance monthly. This has paid off very well and is sometimes also shocking.

Regarding the existing property: do you know the house? Either you go inside and say: wow! The location is great, we also like the layout, this could be a good place to move in! Or: Phew, the shell is pretty cool, the rest has to be changed. If it is the second option, then build new, or tear down the old and build new. Otherwise, it usually doesn't pay off.

Your feedback would therefore help us a lot - thank you in advance! If more information is needed, please let us know!

Aren't your details about income, desire to have children, and fixed costs missing for constructive feedback? You would need to have something here to be able to say something about it.