New construction and second house - financing

Hello dear forum community,

after browsing here a bit but not finding anything comparable, I would like to present my current concern here and ask for your opinion:

Initial situation: My grandparents own a house (built in 1933) that needs to be completely renovated and insulated. In addition, the basement needs to be waterproofed and the roof also needs work. The house is two stories with a saddle-hip roof (about 100sqm without basement). The house is on a plot of about 860sqm in Brandenburg. Since there is a staircase to overcome, my grandparents would like a small single-story bungalow (maximum 50sqm) on the property and would provide me with the house in need of renovation as well as transfer the property as security. For this project, we (2 full earners but without construction experience) would like to spend a maximum of €250,000 with equity of €10,000 (provided we get this loan from the bank). When the bungalow is completed, we would then renovate/rebuild the main house.

Now to my questions:
- We would like to have both carried out by a construction company and built turnkey (some work we could also do ourselves or have done by acquaintances such as painting, tiling, and sanitary). Would such an implementation (complete renovation or possibly demolition with new construction of the old house + a newly built small bungalow) be possible with these financial means?

- Which companies can you especially recommend from your experience to get quotes from?

We look forward to your experiences Thank you!

Hello [hier könnte dein Name stehen],
welcome to the forum.
Do I understand you correctly that you want to build a 50m² bungalow on an existing plot with about 250,000 euros and additionally want to dry out the basement, renew the roof, and completely renovate an existing house?

You will probably hardly be able to live properly in a bungalow of about 50m². In addition, it should probably be designed to be accessible for disabled people, right? That is already 10m² of bathroom space, at least 6m² for technology and storage room => 34m² for living and sleeping.
If that is enough, as a layman I would calculate at least 2,500 euros / m² for this size => 125k euros (technology, front door, etc. also have to fit into a small house).
Plus additional construction costs => 40k euros
Plus painting, flooring => 10k euros
Then still missing are access ways, etc.
That makes 175k euros, which I still consider very little. Thus, 75k euros remain for your renovation.
Maybe that is enough for the roof and basement, but not much left for anything else.

But that is just my layman’s opinion.

Thank you very much for the reply - I already thought that it would not be enough to renovate. But I just wanted to get a few opinions on it.

Hi,

You will probably hardly be able to live properly in a bungalow of about 50m².

I can only respond as a layperson as well.
However, I wouldn't make it that simple. Those who live modestly could get by with that. In old age, you don't automatically need a concert hall. Although you should take space for a walker etc. into account.

Anyway, , have you ever considered the possibilities of an extension? Although that is not free either, it might be possible to use part of the existing technology or make the upcoming renovation so extensive that you can operate the bungalow with it. And it would have the advantage that if the grandparents are no longer around (I don't want to be insensitive, but unfortunately, that will happen even if nobody wishes for it), the house as a complete residential unit might become more usable.
Otherwise, you would have a bigger "garden shed."
Such considerations need to be thought through carefully because potential heirs still play a big role. Which is also the case with a pure transfer of ownership.

Wouldn't it make sense in this constellation to plan the bungalow as an extension? Or at least connected to the main house? That way, at least the heating and the house connections can be shared efficiently.

Flying Space by Schwörerhaus from 80k Euro for 50m2

Or try searching for the article in the FAZ Zuhause in the wohnwürfel.