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

2020-09-15 07:33:26

So the first rule is to stay calm. You now have time to get an overall view. There is no need to rush here. The work you have listed is already really extensive. I recommend first taking stock. A look like new will naturally be relatively expensive. But of course it is doable. So first check the condition and then come back again to see what really needs to be done or would have to be done or should be done.

2020-09-15 08:04:01

In a major renovation, you save exactly on the shell construction - masonry, concrete.

But you still pay for the gutting. After our project, I'm no longer sure that renovating is cheaper than building new. Topic loan: Do you get the same conditions for renovating as for building?

2020-09-15 08:12:40

I still have a question. Assuming we decide to build new after all and so far 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 taken into account by the banks? Or with what equity value?

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

I have a question in return: If you are building new, don’t you want to sell the inherited house? 500,000€ will probably not be enough for a new build plus land anyway.

2020-09-15 08:18:24

If the inherited house is worth, for example, 450,000 euros according to the appraiser and we take out 500k, we would mathematically have 90 percent equity capital. That can’t be calculated this way, right?

Yes and no. On the one hand: banks usually have their own valuation and do not rely on the appraisal.
On the other hand, the entire project is considered. That means in the cost calculation for all KG, in total, for example, approximately 950k€, then you contribute just under 50% equity capital.

2020-09-15 10:35:49

First, learn how to calculate. 200sqm + basement: 200 * with your 1200-1500 already equals my written 250-300, the basement won't renovate itself, and there are no additional costs, kitchen, little things that just come along, etc.
With a major renovation, you exactly save the shell - masonry, concrete. Both cost almost nothing.

So as mentioned, 40 years is not old and you definitely won’t fully exhaust the 1500 per sqm, but the new build with demolition, basement etc. of this size easily costs you 3000€ per sqm, so renovating is easily 200k to 250k cheaper! Sure, if the money is no object then go for it, otherwise check the condition and spend the money saved on vacations for 10 years!
But of course this is a house-building forum so everyone naturally wants to build.

2020-09-15 10:50:42

want to build naturally

RENOVATING is also building

And in my experience, renovating to new-build standards is always significantly cheaper than building new, provided no structural interventions are made to the substance/statics. With €750 per sqm, you can usually bring the house up to new-build energy and technical standards. Additional costs or architects do not even come into play.

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

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