New single-family house or core renovation of a house built in 1978

Unfortunately, I do not currently have any floor plans or photos available as the inheritance happened more or less overnight and I first wanted to request a rough feasibility study here.

Well, first of all, my condolences on the inheritance, to become a (step) orphan so young. A house from this period is not a difficult case to modernize – as I said, "renovate" (and especially "gut renovate") seems like too strong a word here. It should be a little too young for asbestos, a bit of PCB/Lindan remediation might be possible, but nothing to really be scared of. So relax, mourn in peace, and then we'll talk further – we’re not running away from you.

I still have a question. Suppose we decide to build new after all and so far we unfortunately only have about 25,000 euros in cash in the account because we only finished our studies about 2 years ago and are working. Then the inherited house also counts as equity, right? How is this considered by the banks? Or with what equity value?

If the inherited house is valued at, for example, 450,000 euros according to the appraiser and we take out 500k, we would mathematically have 90 percent equity, but it can't be calculated this way, can it? There is indeed a very big interest rate difference between, for example, 100% financing and 80% financing. According to calculations, an 80% financing with otherwise equal parameters would be over 400 euros less per month until full repayment.

g

30k€ gutting
250k-300k€ renovation
50k€ outdoor facilities
30-50k€ miscellaneous (from KN to architect and kitchen...)
Total approx. 400k€

LOL complete nonsense! For a renovation you have to calculate between 1200€ and 1500€ all in! If the structure is in good condition, you can create a real dream house here for comparatively little money! 300K is already a different magnitude than 650k upwards for a new build!

The place is really old u

1978 is not old!

and in need of renovation. That’s why I was very surprised by the appraisal value.

If nothing has been done for 30 years, then a renovation is expensive.

Basically, we like the house’s layout and the plot is also very nice. And with a floor area of about 200sqm plus a cellar of 100sqm, it is also quite large.

That’s great! Go for it. It will be great! A house from the 80s is more lively than a new build.

I do have one more question. Assuming we decide to build new and so far we only have about 25,000 euros in cash in the account because we finished our studies about 2 years ago and are working. Then the inherited house also counts as equity capital, right? How do banks consider this? Or rather, with what equity value?

A house that will be demolished does not count as equity — at most as cash that you burn. The land counts as equity, and if you decide to renovate the house, then of course the house also counts as collateral.

I wouldn't do that. You can build for that.

LOL, utter nonsense! For a renovation, you have to calculate between €1200 and €1500 all in!

First, learn to calculate. 200 sqm + basement: 200 * with your €1200-1500 already equals my written €250-300, the basement does not renovate itself, and there's nothing about incidental costs, kitchen, small things that just come up, etc. In a core renovation, you exactly save on the shell construction - masonry, concrete. Both cost almost nothing.