New construction or buy house, built in '91

Good day everyone,

I don’t know if my question is appropriate here – but I’ll give it a try anyway

We have been struggling for several months with the question of what is "better." Whether we should build new or buy an existing property. Now we have a existing property [Bestandsimmobile] in sight and could purchase a plot of land (small new development area). Both have a good location for us.

The existing property [Bestandsimmobilie]:
Detached single-family house with a granny flat ([Einliegerwohnung]),
Garage,
small but more than sufficient garden
140sqm (+40sqm [Einliegerwohnung]) living space
800sqm plot
Built in '91
very well maintained, but nothing modernized. So still old gas heating, bathroom etc. (Bathroom is white and in very good condition though)
Purchase price approx. 370,000 Euros including all additional costs.
A few thousand euros would be added for new wallpaper and some paint. However, then all our money would initially be gone for further (not necessary) renovation measures. Such as a new modern bathroom, nicer tiles, new heating system (current heating costs approx. 2,000 Euros per year – three times as much as for a new build) etc. (Reserves for possibly urgent repairs are naturally still available)

New build:
The plot (600sqm) is supposed to cost about 80,000 Euros.
The new build, without a granny flat ([Einliegerwohnung] – therefore about the same living area of 140sqm) costs around 280,000 Euros.
+ ancillary building costs
+ garage
+ outdoor facilities
+ who knows what else...
So roughly calculated more expensive
However, then we would have everything as we want it – that means the tiles, doors, windows, sockets, bathroom etc.
Also, the new build would be more energy-efficient (allegedly about 600 Euros heating costs with gas heating due to better insulation, more modern windows, modern heating system, etc.)

We are handy, but both working and have a small child. So basically not much time remains to do a lot of work ourselves on a new build. With the existing property [Bestandsimmobilie] we could theoretically move in immediately.

Do you have any tips or experiences for us that could help us in our decision?
Of course, I understand that we have to make the decision ourselves. But through experiences, there may be things we are currently not considering.

Thanks in advance
Best regards, Peter

You can be lucky with both or end up with nothing. Do you need and want a granny flat? Advantage: rental income, disadvantage: tenants,.... If not, I would leave it and choose the new development area. What is simply great about our new development area: lots and lots and lots of families with small children (everything from 0 to 12 years old is there). The children love the neighborhood, nobody gets upset about playing children, etc. That would not be the case with existing properties in our town.

Hello Peter,

we were also in a similar situation as you. However, after looking at various existing properties for 18 months, we ultimately decided on a new build.

In our new house, everything is now exactly as we wanted it - there were (except for the financial deadline :cool no compromises necessary.

One point you hadn’t mentioned above yet is the issue of warranty - with a new house, you have (as long as the construction company doesn’t kick the bucket :confused no trouble (and no costs) with repairs for 5 years.

I also find the argument from an important criterion: No granny flat, no tenant, no stress with it! We are very glad that we can now shower, do laundry, and also pretty much everything else without having to consider other housemates...

In my opinion, the extra costs for the new build in the current interest rate situation do not hurt so much that they would outweigh the advantages of the individually configured house.

Regards,

Dirk

Hello, thank you for the answers. Basically, we like the house (floor plan, location, outdoor area etc. is great. We would do tiles, bathroom, windows differently in a new build) - that’s why it’s so difficult for us. So far we see the granny flat positively. On one hand, you have rental income of about 300 euros which can go into modernization/repayment/whatever. On the other hand, you share some of the additional costs. There are no common rooms there. The tenant basically lives separately with their own entrance. However, it would be possible to include these rooms with the house (knock-through in the basement) and you would have more rooms in case there are more children than currently planned. We have also considered the argument about children in the new housing estate. But there are only about 15 houses and you don’t know beforehand who will eventually move there. However, in the existing property (which is near our current apartment) there are also a few children in the neighborhood. Warranty is of course also an argument. However, I can’t imagine that suddenly something will break - or am I underestimating that? Apart from the heating system (24 years old).

With an existing property, there has to be a tingling feeling when a) entering the house, b) entering the garden, c) being pleased about unexpected options, so that d) you gladly accept the details that don't quite fit

Check your gut when you think about the house...

Does it really have to "tingle"? On the one hand, it is indeed a great feeling when you think about the house. Ideas like the beautiful garden, the large south-facing terrace with a distant view, etc. make you dream. We also see the advantage of being able to move in without much renovation work and construction stress. However, there are always moments when you ask yourself whether it is a good idea, etc., and then you think the bathroom is not so nice, actually I would prefer dark tiles rather than light ones, etc.... everything has its pros and cons. We currently live in a fairly modern, super well-equipped apartment, so we are somewhat spoiled. Others would probably find the bathroom great. As you can probably tell from my posts, we tend more towards an existing property. Therefore, it is good to hear the counterarguments here.