New construction or buy house, built in '91

Are the standard land values ([Bodenrichtwertkarte checken!]) of the respective properties comparable or do they differ? If yes, by roughly how many euros?

Best regards
Dirk Grafe

Hello Peter,

something can always break.

In our (now rented) condominium, completely unexpected repairs last year tore significant holes in our wallet.

The mixer tap in the shower, the mixer tap at the sink (both Hans Grohe, so no cheap parts), the dishwasher (Siemens), and a defective roller shutter mechanism made the year 2014 unexpectedly expensive. The apartment (and thus everything built into it) is from the year 2000, so it was only 14 years old... Our tenants are now enjoying various new parts.

Things you should also keep in mind when renting out:

- Tax liability (can partly be neglected in case of financing)

- Maintenance obligation (if an appliance (stove, refrigerator, etc.) breaks in the rented granny flat, it's your problem as a landlord to replace it).

- You always have someone in the house you should be considerate of, or who may, in the worst case, constantly bother you with noise, odors, or similar nuisances.

- Risk of rental defaults, which can quickly have serious consequences during an ongoing financing.

Although we also rented out our apartment, we do not live in the same building. That is a big difference. My parents, for example, rented out an apartment in the same house – I would never want to trade places with them, based on the experiences I had while still living at home.

Regards,

Dirk

Thanks Dirk for the listing of the unexpected costs. I hadn’t thought about such small parts that add up to quite a bit in total. The advantages/disadvantages of the granny flat are clear. But as mentioned, we currently see it more as an advantage.

@ Dirk Grafe: how do I calculate it with the standard land values. According to the map, the sqm of the existing property is 80 euros and in the new development area 70 euros. One more info: In the financing consultation, an advisor calculated for me what houses here cost on average and came up with the exact purchase price except for a few euros.

Ok, I just wanted to rule out that there are major differences.

What is the surcharge in the new development area based on? According to the standard land value, your plot is worth 600m² x €70, so €42K. You are supposed to pay about €80K. The question is what accounts for this range, or what is included in the €80K besides the bare land? Don’t get me wrong – the €80K can be plausible, please explain.

If you assume for the existing property 800m² x approximately €90, you get a land value of ~€70K, leaving €266K just for the house (calculated with 10% incidental costs). So, per sqm of existing property you would pay about €1480 including deferred maintenance. I find that a lot, also compared to my own purchase. It may of course be that the property justifies the price/value, but depending on how large the deferred maintenance is, you quickly come to total costs where a new build makes sense – although I prefer to buy an existing property myself and would always choose it again. However, it strongly depends on the purchase price.

If my calculation is correct, you should have been offered a purchase price of about €335K including land. If you fundamentally like the house, I would revisit it with an expert or architect and then quantify the deferred maintenance. Based on that, I would make a written offer and set a self-imposed limit for the purchase price. Without having seen it, and as you describe it, I can’t imagine that a “3” would be in front for me. The deferred maintenance would have to be very small, the equipment high quality, and the usability for me fully given without conversion measures.

Best regards
Dirk Grafe

Thank you very much for the detailed answers and tips

The 80,000 for the plot of land is estimated. A concrete offer is not yet available. We applied for it a few months ago and soon the plots will be allocated. Then you will get the exact size (probably between 600 and 700 sqm), the development plan and the exact price and can then decide. According to information from the building authority, we would have to calculate with development costs of around 100-120 euros per sqm plus the real estate transfer tax. Therefore, I come up with or calculate 80,000 euros. The mentioned 70 euros were also around the NB area. It can then be that it becomes more expensive.

Another offer for the existing property is of no use, as there are also other interested parties. However, we were the first to commit and live in the neighborhood and therefore people "know" us. People here also talk about the fact that the house would be in a great condition and that it is the most beautiful plot in this residential area. What exactly can all the repair backlog be? To me it looks like nothing needs to be done at first (except some wallpaper and paint for the plaster) With "nothing modernized," as described in my first post, probably misrepresented the condition. The heating is clear to me - it is old but according to the heating engineer still in good condition - excellent emission values (according to the statements of the sellers). Although a new circulation pump and a new expansion tank have already been installed there. The roof is, as far as I can judge, fine. The facade, the wooden windows and the roof overhang were only repainted 2 years ago. The shutters were also replaced with new ones. Otherwise, the tiles, doors, parquet floors are little worn - everything looks quite okay.

Now about building - I keep hearing that it is total stress. Running after the craftsmen and in the end the result would not be as good as it was before. Is it really that bad? What costs come up? How high are the additional costs? What does the outdoor area cost? How long does it take until everything is finished?

Regards Peter

I would take the existing property, at least then you don't have to deal with botched construction that drives you to ruin or horrendous additional costs. I think it's more important that you see something in the house than that you like it immediately. Our house was a real eyesore, which is why no one wanted to buy it, but slowly I’m starting to like it. We mainly took it because our 3 pairs of rabbits could each have their own room there and we still have 5 rooms left that we can somehow "fill." Far from bedroom-living room-kitchen-bathroom. Also, the house is practically in the forest. The appearance was really secondary, and by now we’re well on our way to completely renovating and tearing everything out, so in the end nothing will be the same except the foundations. I do like the granny flat (later for a child?), but I would never want to rent it out. First, I don’t like strangers on the property, otherwise I could have stayed in the rental apartment, and secondly, the duties and consideration would be way too annoying for me. You can surely still negotiate on the house price (-10% would be the minimum for me).