lukas81
2020-04-05 19:32:44
- #1
Hello everyone,
I have already found some interesting things here in the forum and hope that you can also help me with my own question:
My wife and I have "inherited" my parents' house (they moved out, not deceased). After my parents moved out, it was rented for a few years, the tenants will move out soon, and we (currently tenants) want to have our own home. So far, so good, everything is settled within the family.
But we are unsure whether it is worth renovating the house or if we should rather demolish it and build a new one in its place. The house is from 1973, has 2 full floors, a large attic, a full basement, about 160 m² of living space, is generally solid and in good condition, and we also like the overall floor plan. Since 1973, however, nothing substantial has been renovated except for a new heating system.
We would want to redo a lot. An architect, with whom we have talked about this, estimated the total costs for a comprehensive renovation with mid-range to higher quality fittings at €270,000 (including everything, also the architect), which would bring us to KfW100 standard.
Regardless of whether this cost estimate is accurate, for the decision on whether the renovation is worth it, we would only need to compare what
a) the parts of the renovation cost that would not be incurred in a new build. These are, in my opinion:
b) a demolition and new build up to the shell would cost, right?
The other costs (e.g., for the kitchen or bathrooms) would be incurred anyway.
The difference (possibly taking into account KfW subsidies) we would then have to weigh against the advantages in living quality and value stability that a new build would have. Emotionally, there is not much attached to the house, so we do not need to "factor that in."
Now my questions:
1) Can it be viewed this way or are we making a mistake in reasoning?
2) How do you assess the value of such a comprehensively renovated house compared to a similarly sized, similarly equipped new build – today and in 30 years?
3) What would you do? Are we perhaps overthinking this, and with a house of this age in good condition, is renovation always worthwhile?
And if anyone would like to comment on whether they find €270,000 appropriate for such a renovation – very welcome!
Thank you very much for reading so far, I look forward to your answers!
Lukas
I have already found some interesting things here in the forum and hope that you can also help me with my own question:
My wife and I have "inherited" my parents' house (they moved out, not deceased). After my parents moved out, it was rented for a few years, the tenants will move out soon, and we (currently tenants) want to have our own home. So far, so good, everything is settled within the family.
But we are unsure whether it is worth renovating the house or if we should rather demolish it and build a new one in its place. The house is from 1973, has 2 full floors, a large attic, a full basement, about 160 m² of living space, is generally solid and in good condition, and we also like the overall floor plan. Since 1973, however, nothing substantial has been renovated except for a new heating system.
We would want to redo a lot. An architect, with whom we have talked about this, estimated the total costs for a comprehensive renovation with mid-range to higher quality fittings at €270,000 (including everything, also the architect), which would bring us to KfW100 standard.
Regardless of whether this cost estimate is accurate, for the decision on whether the renovation is worth it, we would only need to compare what
a) the parts of the renovation cost that would not be incurred in a new build. These are, in my opinion:
[*]Removal of floor and wall coverings (mostly own work)
[*]Insulation of walls and balcony
[*]Part of the costs for electrical and plumbing work, because installing in a new build is easier than tearing out and renewing.
[*]Changes to the floor plan
b) a demolition and new build up to the shell would cost, right?
The other costs (e.g., for the kitchen or bathrooms) would be incurred anyway.
The difference (possibly taking into account KfW subsidies) we would then have to weigh against the advantages in living quality and value stability that a new build would have. Emotionally, there is not much attached to the house, so we do not need to "factor that in."
Now my questions:
1) Can it be viewed this way or are we making a mistake in reasoning?
2) How do you assess the value of such a comprehensively renovated house compared to a similarly sized, similarly equipped new build – today and in 30 years?
3) What would you do? Are we perhaps overthinking this, and with a house of this age in good condition, is renovation always worthwhile?
And if anyone would like to comment on whether they find €270,000 appropriate for such a renovation – very welcome!
Thank you very much for reading so far, I look forward to your answers!
Lukas