Purchase decision small semi-detached house 100 sqm from 1930

Hello everyone,

My partner and I (both 28) are currently facing a difficult decision.

We have the opportunity to take over a small semi-detached house within the family.

We would buy it estimated for about €50,000 below market value (so a real bargain) and completely renovate it – I estimate the renovation costs at around €200,000 (including own labor, knocking down walls, new electrical wiring, new sewage/fresh water pipes, and energy-efficient renovation where it makes sense, e.g. new roof with external insulation, new windows, insulation of the basement ceiling, probably a domestic hot water heat pump, photovoltaic system). The total volume for financing would then be about the renovation costs of €200,000 (we will cover about €100,000 purchase price from equity). This would be very manageable for us even with 4% interest or similar.

We live in the countryside (a small town in South Westphalia), yet here a) the supply of homeownership is very tight and very expensive (for us with about €5,000 household income or around €4,500 in part-time, it’s not affordable) and b) reasonable rental apartments with space for 1-2 children are practically not available – mostly they are unrenovated apartments or similar.

Some new condominiums will be built in the next 2-3 years, the projects are known, but 100 sqm including additional purchase costs cost €430k – with furniture and a kitchen we are unfortunately also at €450k ☹ And there are never three bedrooms, meaning space for two children. For us, this is currently not affordable either – we also want to live, and all the additional and living expenses are unfortunately rising right now. We don’t even consider building a house, even if we had the land – €500k all in are currently gone faster than you can imagine at these prices.

However, I’m not sure if the semi-detached house is right for us. Built in 1930 (although I’ve heard that houses from this era usually have better materials than those from the immediate post-war period?) Basically, it has been very well maintained, everything that needed to be done has been done (just last week new sealing on the flat roof of the garage) and the structure is apparently completely fine – no moisture problems in the house, intact roof truss, … The location also fits us perfectly. Access to the terrace and garden is possible through a large door on the first residential floor.

However, it is only about 300 sqm of land and 100 sqm of living space (but with a basement + garage), with an attic conversion planned maybe 110 sqm. But then all the space would really be fully used. We do have the big concern that the whole thing is too tight and cramped for us. Less now, but maybe later with two children.

On the other hand, we currently see no other option except to wait for a suitable, large, modern rental apartment – with an uncertain outcome.

We are a bit overwhelmed by the situation. Does anyone here live on a similar space with a family? Did you have similar thoughts or were in a similar situation, went through with it and regret it / don’t regret it?

I am grateful for any experience / advice.

First of all, "Welcome" to the forum.

If you want, you can easily answer your question. You now have the opportunity to get a spacious house with 100sqm living space for little money, which also meets a modern standard. And it fits very well with a child. 300sqm of land is okay! I have already lived very well with two children on about 225sqm of land (there was a house + garage + front garden on it). With 100sqm of living space, you currently have a larger living area as a couple than the average person in Germany. That must also be taken into account.

And honestly, if the second child should come, the house will simply be sold again in x years. So what. Financing a house with interest costs under 500€ is a dream. With your income, you can quickly build equity through high repayment – 1,500€ repayment per month = the house is completely paid off in 10 years. Then you can buy or build again.

Are currently a bit overwhelmed with the situation. Does anyone of you live on a similar area with a family? Did you have similar thoughts or were you in a similar situation, went through with it and regretted / not regretted it?

I (we) have always adapted the properties to our life situation. I am now 49 and live in the fifth property I own. From the small condominium at the beginning to 300sqm living space with a large plot when I was married with three children, up to now 120sqm house (+ granny flat). You just have to make sure that the location and later saleability are there.

However, it is only about 300 sqm of land and 100 sqm of living space (but with a basement + garage), with a converted attic (planned), maybe 110 sqm. But then really every bit of space is fully utilized. We are quite concerned that the whole thing will be too tight and cramped. Not so much now, but possibly later with two children.

300 sqm of land is already quite good for a semi-detached house. It depends on how the house is positioned on the plot. We had 2 parking spaces in front of the house on a 309 sqm plot, a trampoline with a diameter of 3 m, and a garden shed measuring 2.5 x 2.5 m. At the back, there was a terrace of 6 x 5 m, a swing, and even a above-ground pool about 2.5 x 3.7 m in the summer. And there was still lawn space all around. And the kids (our daughter + cousins + neighbors, etc.) were always running back and forth without bumping into anything.

With a house, 100 sqm can be absolutely great to live in with a good room layout. Our house had about 115 sqm of living space. We had 2 children’s rooms, 1 bedroom, and the converted attic.

There will always be people for whom even 150 sqm will be too small! My own family consists only of mother, father, and child. But our family itself is quite large. There were times when we had lots of overnight guests, also for several weeks (visitors from abroad), and yet everyone had a space where they could retreat.

If you like the location (which you do) and the floor plan of the house, I wouldn’t be discouraged by the 100 sqm.

First of all, many thanks for your answers.

We want to create three rooms on the upper floor: 1x children's room (the walls can remain as they are), 1x bedroom (these will also stay), and from the current third bedroom a bathroom (here, part of the room should be reduced by offsetting the wall so that the hallway has some space for a proper staircase to the attic). Additionally, the attic, which definitely should be converted, will be connected via a staircase over the hallway, in case the second child arrives. With insulation on the roof, it should be bearable under the attic.

There is enough storage space in the basement.

I also told my partner that we should take the chance. Who knows if there will even be two children? For some, it unfortunately doesn't even work with the first...
In our circle of acquaintances, a lot is being built and nothing less than 150 sqm living space is accepted. Of course, one looks at that, even if one should stay true to oneself. Here in the forum, the demands are quite high and some things are considered ready for demolition :-)
Although the building is really in good condition. As I said, reasonable people lived there who always took good care of it.

The house is positioned relatively favorably on the property up to the front edge towards the street (in front of it is only a sidewalk), right a staircase to the front door, next to it a garage (which is also nicely spacious with enough room for garbage bins, bicycles, and access to the basement).
Behind the house is the terrace with about 20 - 25 sqm, above it, accessible via two steps, the garden with lawn area and flowers.

In the circle of acquaintances, a lot of building is happening and nothing below 150 sqm of living space is possible.

Nowadays, you’re looking at €450k pure construction costs. Without land. Without additional construction costs. Without garage. Without an already landscaped garden. Etc.
Just ask around in your circle of acquaintances if things will go that well financially as they do for you. Nonsense, don’t ask. Nobody will admit how tight it actually is. Or how price increases are currently making themselves felt.

The house is positioned relatively cheaply on the plot right up to the front edge facing the street (beyond that, there’s only the sidewalk), on the right stairs to the front door, next to it the garage (which is also nicely big with enough space for garbage bins, bicycles, and with access to the basement).
Behind the house then the terrace with about 20 - 25 sqm, above it, accessible by two steps, the garden with lawn area and flowers.

The garden area is larger there than with many 600 sqm existing buildings that have a big front yard. I currently have just under 1,100 sqm of land – roughly 1/3 built-up, 1/3 front yard (sure, you can use that sometimes as well, but it lies fully in the sun on the street) and only 1/3 as a real garden.

But nowadays, you're looking at €450,000 in pure construction costs. Without land. Without incidental building costs. Without a garage. Without an already established garden. Etc.
Just ask around among friends and family whether things will be financially this good for them as for you. Nonsense, don’t ask. No one will admit how tight things actually are. Or how price increases are currently making an impact.

The garden area is larger than with many existing 600 sqm buildings that have a large front garden. I currently have just under 1,100 sqm of land – roughly one-third built-up, one-third front garden (sure, you can use that sometimes, but it’s fully exposed to the sun at the street) and only one-third as a proper garden.

Yes, a large garden also means a lot of work. We would have preferred a smaller plot, but since the land price was simply unbeatable, it ended up being almost 1,500 sqm. Don’t look at what others are doing, just look at what is enough for you.

All the information sounds very good. You will have a house and can still confidently see the world and afford nice things. What more could you want?