Renovate or demolish and rebuild?

Good morning everyone,

I inherited an older house and originally wanted to have it renovated. So far, I have been in contact with three architects. One suggested new construction, the others renovation. With the architect we eventually chose, we went through the planning for the renovation.

Today, after half a year, I received the cost estimate and was almost shocked. Estimated just under €900,000, including planning for the outdoor area and terrace.

The house is very old, there are not even proper plans anymore (built around 1800, it is only habitable on one level with about 90 sqm). The ground floor and attic were actually supposed to be converted into living space after the renovation. The roof is dilapidated and definitely needs to be redone, as the ceilings are only about 2.10 m high and also sloped. An extension has to be built onto the house, as a rather narrow staircase in the house basically ruins the entire layout. The electrical system is decades old and there is no heating at all. The windows also need to be replaced.

Now I have naturally begun to rethink; I honestly did not expect such enormous costs. Paying off the house for a lifetime does not make sense to me.

I am now looking again at prefab houses and demolishing the existing building. Turnkey houses seem to be available from around €150,000, although that is probably the absolute basic construction. But even if you factor in a buffer (x2) and estimate the slab + demolition at €100,000, I am much better off with a new build? Of course, I would then have to forego subsidies, but that would probably be negligible in this case. Plus, I can choose the type of house I want and have something new.

What do you all think? Maybe someone has gone through something similar or can share their experiences with a prefab house :)

Thank you very much

Today, after half a year, I received the cost estimate and I was almost shocked. Estimated just under €900,000, but including the planning of the outdoor area and terrace. The house is very old, there aren’t even proper plans anymore (built around 1800), it is only habitable on one level with about 90sqm. The ground floor and attic should actually be converted into living space after the renovation. The roof is dilapidated and definitely needs to be redone, as the ceilings, among other things, are only 2.10m high and also slanted. In addition, an extension has to be built onto the house because a rather narrow staircase in the house actually ruins the entire layout. The electrical system is already decades old and there is absolutely no heating. Windows also need to be redone.

If not for sentimental reasons and/or monument protection, I can only see demolition as sensible here. For €900,000 minus demolition costs and outdoor facilities, you can still get a lot of house – even now. Apart from that, the description above suggests that not even the shell is usable. So it’s basically a new build anyway. If you want, you can nicely integrate individual elements of the existing building (perhaps old bricks, beams, or similar) into a new build.

We went through the planning for the renovation with the architect then selected. Today, after half a year, I received the cost estimate and was nearly shocked.

You can directly “shoot this architect in the wind.” Presumably, he also wants 5000€ for his great cost breakdown/estimate…

if the renovation really costs 900,000.--€, then I am also in favor of a new building, unless some regulations oppose it, such as setback requirements

For €900,000 minus demolition costs and exterior works, you still get a lot of house – even now.

That's also my opinion,

Shell or turnkey houses are apparently available from around €150,000

but that is only because builders list this value on their homepage; it is a myth.

Luckily, the house is not heritage-listed. Boundary distances are also not a problem with the new build since we have a large plot of over 2,000 sqm and can therefore vary.

As I said, it seems quite a lot to me, but that's what the expert's assessment is for. I need something concrete so I can go to the bank, and it doesn't help me if I apply for a loan of 400,000 when the calculation calls for 900k. But because of that, I have now basically finished with the renovation, since the savings compared to a new build were the main consideration.