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Fulfill the dream of owning a home – build it yourself or buy it, which is better?


Anyone who harbors the dream of owning their own home is quickly faced with the all-important question: Should I have the house built or purchase an existing property? The answer to this question is not so easy to find. First and foremost, it depends on one’s own wishes and requirements for one’s own home. Not unimportant are also the financial starting position and given financing options.

Whichever option you choose, everything must be carefully weighed up and planned. Find out here about important decision-making aids so that you can fulfill your dream as quickly as possible!

Fulfill the dream of owning your own home: Building a new house

Building a house what to consider

Building your own house has numerous advantages: you are free to design your own home and can implement your ideas as best as possible, depending on your budget. First and foremost, however, is the question of where suitable building land can be found. Depending on whether you prefer to live in the city or in the countryside, prices can vary greatly. The selected federal state also plays a role. Statistically, the average price per square meter in Germany is 194.87 euros.

What factors additionally influence construction costs?

How high the construction costs ultimately turn out depends on other decisions, however. In order to find the optimal building project for you, you should compare your income and expenses and thus determine the available budget. Then you have a better overview of the way in which the house construction can be implemented for you. Costs incurred will depend on this:

Architect or developer? – While an architect can design exactly the house you envision in your mind, a developer offers pre-planned solutions. The latter is less expensive, but not as individual.

Prefabricated or solid house – The so-called prefabricated house is to a large extent already produced by the manufacturer. The assembly of individual components then takes place on the building site. The more durable variant is called a solid house. This is put together only on the property stone for stone and is more expensive.

Buy house what costs I need to calculate

Favorable settlements – In some places building lots are offered sometimes reduced, since certain settlements would like to promote the influx of new citizens. Instead of only aiming for the desired location for building a house, it is also worthwhile to look for suitable residential areas.

Build or buy: Choice of the credit

A large effect on resulting costs with the building of houses has the choice of the suitable building loan. Only in rare cases can builders finance everything out of their own pocket – as a rule, taking out a loan is mandatory. Inform yourself well about a construction financing in comparison . Furthermore, you should remember that it is always better to put as much equity as possible in the construction of their own home. Otherwise, there is a risk of being heavily indebted in the long term.

Incidental acquisition costs, which include land acquisition costs, land registry entries, notary and brokerage fees, should always be financed out of your own pocket. It is important that you calculate well how much money you will need to build a house before taking out a loan. Long-term thinking is crucial when choosing the right loan: according to experts, a loan term of 20 years is recommended in order to benefit from low interest rates in the long term.

Buying a house

Buying a house that has already been built appears easier at first glance, as not as much planning is required. Instead, you only need to search out and visit suitable properties so that you can make a good decision in the end. However, there can be very high price differences here as well.

What determines the cost of buying a house?

Build or buy house loans in comparison

Unlike building a house, you may have to make more compromises when buying one. For example, the perfect house for you may not be in your preferred location. The cost you will incur depends on several factors.

Location of the house: depending on whether or not the house is in a popular area, purchase prices can vary greatly. Houses in prime locations such as Munich, Hamburg or Berlin are particularly expensive. In Germany, prices average between 2,348 and 4,632 euros per square meter.

Equipment: Depending on what equipment an existing property is equipped with, it will be more or less expensive. Possible equipment includes the heating method , the extent of thermal insulation, outdoor facilities and bathroom equipment.

Condition: This criterion is primarily concerned with the need for renovation. Therefore, before you buy, make sure you know when the last renovation was carried out, how old the heating system is and what the energy certificate says. Otherwise, considerable costs may follow after the purchase. Also pay attention to mold and moisture as well as the condition of the windows.

Renovation of an old building

Are you one of those people who succumb to the charm of an old house? Then you should consider renovating an old building. In this way, historical construction methods can be preserved and used for your own purposes. Before buying an old building, however, make sure that you can afford the renovation work that will be required afterwards. In some cases, the price for this can even be far higher than for a new building.

The advantages of renovating an old building are obvious: The measures can be carried out at your own pace and step by step, and you contribute to increasing the organically grown infrastructure. There may even be the possibility of a subsidy.

Disadvantages, on the other hand, are that the entire old building must be inspected by experts before renovation and full modernization costs significantly more than new construction. In addition, old houses are often still susceptible to moisture and mold even after renovation.


Regardless of whether you build a house yourself or purchase an existing property: In any case, you will incur costs that can usually only be managed by taking out a loan. In any case, it is important that you plan well and compare all the properties and houses viewed before buying. If you dream of moving into an old building, you should look even more closely during the viewing in order to be able to realistically estimate the costs after the purchase.