Renovation & Attic Expansion: KfW? Cost-effectiveness vs. New Construction?

Hello,

thank you for your contribution, soil2006.

I completely agree with you, if you are completely dissatisfied with the current living situation, then of course none of it really makes sense.

In our case, we already changed the room layout some time ago. Specifically, for example, we now have an open living/dining area of about 40-45 sqm. In addition, the house has relatively large window surfaces, which is also quite helpful. Overall, we feel quite comfortable in the upstairs apartment.
Currently, nothing further is planned regarding the room structures upstairs.
Of course, there are some things I would solve more modernly in a new build now: floor-to-ceiling windows, larger bathroom, somewhat higher ceiling height (upstairs about 2.47m, on the ground floor about 10cm more), etc.

In the medium term, however, it is already planned to change a few things on the ground floor (open living/dining area, then possibly put walls back upstairs, enlarge bathroom + new, ...)

From my point of view, an old building compared to a new build is almost always a compromise. This can’t really be avoided, since the topic of living has naturally changed steadily over the decades and accordingly rooms often have a different function today.
Ultimately, it is about personally deciding how “lazy” such a compromise is. The more dissatisfied you are and the worse the price/performance ratio is, the more a new build naturally comes into focus. But then other problems arise again here (for example, I currently wouldn’t even know where to buy land where I would be really happy with both the price and the location...).

What specific situation are you in right now?

Hello,
at the moment it looks like my aunt was placed in a nursing home some time ago, and therefore a house built sometime in the 50s stands free next to my parents' house. The idea of moving into this house is, of course, very close at hand. Three years ago, the facade of the house was insulated and plastered, so you can't see the age from the outside. However, there is a lot of renovation needed inside. The floor plan does not correspond to my ideas in the slightest. Due to the external insulation, the house is very poorly breathable, resulting in high humidity inside the house, which has already caused slight mold in some corners. The house would be available for 90k€. Unfortunately, there is no garden or anything similar, since I come from a small Moselle village and here the houses are more or less built right next to each other. Making my decision more difficult is the fact that a new development area is currently being created, which will be ready for construction in a maximum of 2 years. So you see, it is not easy for me to make a decision either. ;)
Aunt’s house 90k€ + major renovations approx. 100k€ = 190k€
Disadvantage: no garden or similar; still does not fully meet my ideas 100%
New build including land 330k€
Disadvantage: clearly the costs; neighborhood unknown, which can escalate quickly in the village :D

Hello soil2006,

of course, it's also a difficult decision you are facing.

Overall, in your case, I would almost tend more towards a new build. On the one hand, you of course still have the purchase price of 90k for the house. On the other hand, it's always difficult if, even after the renovations, you don't really feel satisfied. The thing with the new development area sounds tempting as well (although I’m actually more the type who would prefer to build in a gap rather than in a classic new development area).
You write that you would expect about 100k for "major renovations." From your description ("However, the interior requires a lot of renovation. The layout does not correspond at all to my ideas") this seems somewhat low.
Are modernization measures such as a new heating system, a new roof, new windows, etc. already included here? Or are these measures not planned at all for the time being, and you are only taking care of the actual renovations? In this case, you would of course have to consider that these things will have to be addressed sooner or later, which would further increase your estimated costs of 190k.

Overall, it all depends on the overall circumstances. As I said, the factor time also plays a role for us, and currently, it is simply very difficult to find a great building plot at a fair price, etc.

The (temporary) expansion of the roof is not worth it in my opinion!

Is there no other way to realize an extension, such as a semi-detached house, which you could fully rent out yourself after moving into the ground floor and which would then completely pay for itself?

Hello,

thank you for your feedback, .

What exactly do you mean by extension?
Building a "real" second house as an addition, which would later be rented out?
I imagine that to be difficult. On the one hand, of course, it takes up a lot of extra space on the property. On the other hand, I wonder what would then happen to the existing house? Should it still be modernized / renovated in your idea? It should be, if we want to later live there on the ground floor.
I don’t think it would put us in a better financial position.

Or did you just mean a small extension that would roughly correspond to the increase in area in the case of an attic expansion?

First, a unit that meets your needs, 60 sqm?, which can later be rented out separately.

You only carry out the extensive renovation of the old structure once the ground floor is available.

Create a "marketable", rentable unit now.

With everything else, you waste resources and don't really know how things will proceed with the ground floor.