Lukinski Share: What is it?

Many are owned older properties. Some houses and apartments are in need of renovation, others are in need of refurbishment and still others are already perceived as dilapidated.

Sale + Redevelopment = More Profit

Hardly anyone can afford to completely renovate such a property – be it money reasons, time reasons, stress or even a combination of all factors.

Especially for such properties, with greater potential for appreciation, we offer sellers our exclusive Lukinski Share. If all conditions fit, you will profit 2x from the sale of your property.

Parameters for Share Deal (quickly explained):

• Old property with development potential
• Renovation / refurbishment backlog
• Also dilapidated / ready for demolition
• Purchase up to 5 million euros
• Possible: apartments and apartment buildings
• Not possible: single family houses

Why are we doing this?

We love to develop real estate. Gutting old, redesigning to create living space, for people. Many would also like to upgrade their property before it is sold. But not always, the possibilities are there. Our offer is specifically for the:

For those who think “a sale is not worth it” or “a sale is too costly” because the house is “too old”.

and

For those who think, “I don’t feel like refurbishing all this” or “how am I going to pay for it”?

Exactly for them, is our Lukinski Share Deal.

Contact & Evaluation

No stress during the sale, personal contact person, directly and without a broker and all over Germany. If desired, we will also give you a free evaluation directly. We look forward to your call or e-mail!

Lukinski Contact Person:

• Contact

Upgrading, renovation… to new construction

You want to sell an old house that would be too expensive to maintain? Sometimes the chance to directly provide additional living space. This again increases the effectiveness of your floor space. More living space = More rental income. Here, 2 smaller apartment buildings (6 ETW + 3 ETW) become a larger new building with a total of 18 ETW (condominiums); increase + 9 units.

In addition, attention was also paid to future development. Instead of equally distributed 70-90 square meters apartments, there are now respectively:

• 1 + 2 floor: 4x micro apartment each with ~ 40 sqm
• 3, 4 + 5 floor: 2x apartments each ~ 80 sqm
• 6 floor: loft apartments 2x ~ 80 sqm each incl. terrace

This will 1) create more housing and 2) raise standards = higher rental income / square foot.

From old, make new:

Masonry, substance, from basement to roof truss (here) everything is renewed.

Only 4 months later, the new masonry is already drying.

Modern new construction.

For you as a seller, without work, without stress, without cost.

What have we already done? – Project development

We have already developed several properties! A recent example: Last year we bought a car dealership (commercial property). Right now the old car dealership is being demolished, with two excavators. In the coming months, more than 8 apartments will be built here in an apartment building. 8 apartments, instead of 80 parking spaces – a good deal.

A car dealership with a lot of wasted space (concreted outdoor area) thus becomes new living space!

The city itself benefits from this; housing is in short supply in many cities. The new tenants and buyers profit from this. We as a real estate developer and you as a seller, through an additional share.

Contact & Evaluation

No stress during the sale, personal contact person, directly and without a broker and all over Germany. If desired, we will also give you a free evaluation directly. We look forward to your call or e-mail!

Lukinski Contact Person:

• Contact

In the fastest case, we seal already within 14 days at the notary.

Old building apartment: what is an old building? – Definition & Features

Old building apartments stand out in any city centre. The special exterior facade makes this property an eye-catcher among the newer concrete buildings. With the stuccoed walls, the small balconies or wall protrusions, you can quickly call a property an old building. Here you will learn everything about the most important features and characteristics of an old building.

Features of an old building: stuccoed walls, high ceilings & Co.

An old building apartment has many characteristic building elements to offer. In addition to the stucco-decorated interior walls, folding doors and a bay window, the high ceilings are a particular feature of this type of building. Depending on the type of construction, these can rise three to 4.5 metres in height and give the room a lot of freedom and size. Likewise, the classic wooden parts and the herringbone parquet are an unmistakable trademark of an old building. The box-type windows are also part of the architecture. In the old days, double windows were built with a space in between to double insulate the room. However, these are nowadays replaced by newer variants.

Room layout in an old building: small passage rooms and large corridor

Apartments in old buildings are known for their passage rooms, built-in closets and storage rooms. In most cases, the rooms are smaller than in new buildings, but higher. So you should use the space upwards. No other building style offers you such high ceilings and thus the possibility to create storage space, for example. High shelves and large, impressive hanging lamps are possible. In an old building you have many options.

Advantages & disadvantages of an old building flat: renovation, taxes & Co.

Before you invest in an apartment, you should look at the advantages and disadvantages of each type of apartment. From this you can weigh up whether this type of apartment suits you and whether you can make friends with the disadvantages. Especially with an old building apartment, the construction is different than with new buildings. We have compiled a list of the most important aspects for you, so that you can make the right choice.

Advantages: Historic preservation and tax benefits

An apartment in an old building is above all stylish and has its own personal charm. In addition to the aesthetic advantages such as stuccoed ceilings, such an apartment also offers some practical advantages. In most apartments in old buildings you will find a cellar, which can be used as storage space. This is rarely seen, especially in the inner city. In addition, most old houses are listed and if you want to buy one, you have the possibility of 90% of the renovation costs (within the first ten years) tax deductible. The box-type windows also have their advantages. Because of the double pane and the air space in between, they insulate the room and absorb sound. This is no longer the same as today’s standards, but it is a nice side effect.

• High ceilings with stucco
• Monument protection
• Often cellar with storage space

Disadvantages: may need renovation and no elevator.

It is legally determined that a building with a year of construction up to 1949 is titled as an old building. Therefore, it is unfortunately inevitable that you have to include disadvantages with such an old building. If you want to buy an old building, it is often in need of renovation. So you should include the extra costs in your budget. In addition, living in an old apartment is also different from living in a new building. The walls are thinner, which is why it’s more light-hearing and you can hear the old floors creaking. Most of the time there is no elevator in the building and because of the high walls it takes longer to heat up the room. You will learn more about the heating system in old buildings in the course of the article.

• Renovation may be required
• Light-hearing, creaky floor
• Slow heating
• Mostly no elevator

Old building apartment: Who is it right for? Singles, couples, …

Old building apartments are very sought after on the real estate market. The special architecture, the unique charm and the proximity to the city centre are just a few arguments in favour of this apartment. However, this type of property is not suitable for everyone. Seniors in particular would be restricted, as there is often no elevator in the buildings. An old building apartment is also usually too small for large families. Here we present a few groups of people who would ideally fit into an old building apartment.

Students: charming flat share

The special charm of an apartment in an old building is particularly popular with young adults. Often these properties can be found in the middle of the city centre and are therefore ideal for students and especially shared flats. Due to the many small rooms, you can easily live together with three or four people and thus share the rent. The proximity to the university and the flexibility that this offers is also a great advantage.

Singles: freedom and opportunities for development

An old building is also very attractive for singles. The high ceilings offer a lot of design freedom and you have the opportunity to live out decoratively. At the same time, the small rooms and the special architecture lend something cosy and quaint, so that you feel safe and familiar. In addition, the proximity to the city centre and therefore to work is an important and positive side factor. If you want to take a look at other types of apartments, you should definitely take a look at loft apartments or basement apartments!

Couples: family in planning?

Often an apartment in an old building can be found on the outskirts or in different parts of the city. So you are not in the middle of the hustle and bustle of the big city and usually have a little more free space. These properties are particularly suitable for couples with children or small, young families. You have more privacy and are still quickly in the city center. In addition, the small and high rooms offer a lot of room for personal development, but also for potential children’s rooms. So these properties are perfect for a few years before perhaps deciding to buy a house.

What you should consider before buying/renting an apartment in an old building

Especially with older buildings, it is very important to get your own impression of the apartment before buying/renting. Inform yourself exactly about the construction and the building to be prepared for everything. With an old building apartment there are some points that you should consider. We have summarized them for you, so that you can clarify everything in advance and no unexpected costs await you later.

What should be considered when buying?

First of all, you should find out about the condition of your potential property. Apartments in older buildings often require renovation and modernisation, which can lead to additional costs. We recommend that you consult a specialist and an estate agent who can help you with the purchase decision and give you an insight into the costs involved. It is possible, for example, that the exterior façade is damaged and moisture can get into the apartment, causing mould. It is also not uncommon that the statics of old properties need to be repaired to ensure stability. Repair work is also sometimes necessary. So let a specialist help you so that nothing can go wrong.

• Structural condition?
• Statics?
• Repair work?

If you want to learn even more about buying a property, you can find useful tips on the subject in the article Buying a flat.

Rent & Tenants: What to consider when renting?

Even if you decide to rent an old building, there are also some things to consider. Here, too, you should consider possible renovation costs. You should definitely discuss these with the landlord before signing the contract and have them put down in writing. This will protect you, because if any damage is discovered later, you could be stuck with the repair costs. In addition, you should always discuss personal alterations with the landlord. If you plan to change your apartment beyond decoration, we recommend that you get permission for this as well. It could be that you have to hand over the property in its original condition when you move out.

• Record renovations in writing
• Agree changes with landlord

Heating systems in an old building: heating, tips & ancillary costs

In old apartments, it is not always easy to have the right room temperature and at the same time not to drive up the ancillary costs too far. Environmental protection and climate friendliness are aspects that should be kept in mind for every property. If the temperature is set too low, this could lead to mould, if it is too high, the climate will be affected. Here are a few useful tricks to keep your utility costs as low as possible.

Time switch on the heater

Use the timer on your heating to heat energy efficiently. It is recommended that you turn the heating off about an hour before you go to sleep and turn it back on an hour before you wake up. This way, no energy is wasted during the night and your heating bills are lower. There is no heating during the night and yet you wake up in a warm environment. A time switch is therefore ideal in old buildings.

Temperature difference in the rooms

In most cases, old apartments have several small rooms and passageways. So consider in which rooms a continuous heating is necessary and in which not. Keep the temperature lower in rooms that are not often used and higher in your living rooms. This way you keep your utility costs lower and it is still warm in the important rooms. However, make sure to close the doors between rooms with a temperature difference, otherwise the warm air will escape more quickly.

Do not place furniture in front of radiators

In order for the heat to be ideally distributed in the apartment, you should make sure not to place any furniture in front of the radiator. Since the rooms in old apartments are usually larger in volume, this would only further increase the heating phase. Another tip is to keep a small space between your furniture and the wall. This allows the warm air to distribute better and the outer wall does not cool down too much.

Viewing appointment: What to consider & Checklist

Especially if you are planning to buy an old apartment, there are a few things you should consider. You are investing in a property and this decision should not be taken lightly. Investments are always a good idea but especially with old buildings you have to pay attention to some things so that no unexpected costs reach you. We have put together a checklist with the most important aspects that you should consider when visiting a property to buy or rent.

You want to live in the big cities of Germany and have an apartment in the most expensive streets? Here you can find the most expensive streets in Berlin and Hamburg!

What should be considered? – Condition, floor plan and location

As you have already experienced, you have to take some things into consideration, especially with old apartments. Look at the condition of the apartment, decide if it needs renovation or if everything is up to date. What is the layout of the apartment and does it meet your expectations? Often you have to adapt it to the property, because despite the special charm of an old building apartment, the building was built several decades ago. Note the location and infrastructure of the apartment, this could increase or decrease the price at which you would sell the apartment. Are the kitchen and bathroom fitted and what are the service charges? These are just a few aspects to consider. We have put together a checklist for you in the following.

Checklist: For your viewing appointment

Here you will find a checklist with the most important factors that you should definitely take a closer look at when viewing an apartment.

• Sunlight
• Parking
• Pets
• Condition (in need of renovation)
• Floor plan
• Neighbors
• Kitchen/ Bathroom
• Additional rooms
• Heating, water, electrics
• Noise
• Location/ Infrastructure
• Additional costs

Broker: safe investment with top – broker – costs, process & co.

Condominiums are ideal as an investment and are a very safe investment. Especially if you do not have much experience with the purchase of real estate, we recommend that you consult a real estate agent. He or she will advise you on important questions, find properties for you and visit the apartments with you. Real estate investments are not designed for a short-term increase of money, but rather for a good retirement. Therefore, you should approach the matter very carefully and get good advice.

Procedure of a real estate purchase

First of all, you will consult with the real estate agent and you have the opportunity to express your wishes. The real estate agent will now tell you what is possible and he starts with the first research.

Then begins the organizational management. Documents and records are obtained that are important for the purchase of a property. Thereupon the broker begins to find out potential sellers and condominiums for you. Viewing appointments are organized and carried out.

Last but not least, it’s time for negotiations. Negotiations are held with the seller and the purchase contract is drawn up. Afterwards, the estate agent is present at the handover of the keys and ensures that everything runs smoothly. Even after the contract has been signed, the estate agent will be your contact person.

Looking for a professional broker and want to learn even more about the benefits? Take a look!

Financing a condominium: loan or equity?

Do you want to fulfil your dream of owning a condominium or invest in an old building to rent it out afterwards? Then you should inform yourself in detail about the financing of such a property. You need to decide on the right real estate loan and should in the course of many different offers to obtain and compare. The choice of loan will ultimately determine the total cost of your property loan. So it is best to get advice and make the right decision.

Real estate loans and financing: tips, checklist and more

Financing a property can be done in many ways. Here you will find some of the financing options listed with brief summaries. In addition, you will find a link that will take you to more comprehensive articles.

Real estate loan

• Real estate loan adapted to personal needs
• Flexibility should be ensured
• Proper planning is important
• Loan

Financing of an apartment

• No house, but only apartment to finance
• Comparison of different housing financings advisable
• Call in advice
• Real estate financing

Half-timbered house: architectural style, features and architecture

Everyone who grew up in Germany has seen them. But how exactly it is to live in such a house, you probably only know once you get the chance. However, the houses are not for everyone and require a lot of work. You can read about how the construction method influences the living atmosphere here.

Let’s start with the part that seems more interesting to some and not so interesting to others, but which is the basis for understanding the peculiarities of the houses. If architecture doesn’t interest you at all and you’d rather get straight down to the nitty gritty, then just skip ahead to the advantages and disadvantages of the house form.

Half-timbered houses were a good option in the 17th century for building houses from locally available materials. The construction of half-timbering is extremely sophisticated, because the positioning of beams and supporting beams requires great care. In return, at the end of the house construction there was a wind and weather resistant building, which was even able to store heat.

You want to buy or build a house, but don’t know which one is right for you? Then take a look at our guide to house types from A – Z! Here you will find all house types, from bungalow to terraced house!

Construction method: Features and differences

With the industrialization and increasing networking of the world, the local availability of building materials has moved into the background, because the required materials can be imported much easier. However, half-timbered houses are characterized then, as now, by their basic construction of wood.

The exposed wooden beams are also what make up the charm of the houses for many. So if you are thinking of rebuilding a house in the half-timbered style, it is advisable not to plaster it, because that would destroy the characteristic for many.

Before building, you should definitely find out whether the plot of land you have chosen allows for the construction of half-timbered houses. The easiest way to find out whether this is the case is to consult the land register, which is worth looking at anyway before buying a property or house.

In any case, it’s important to know that sourcing materials, as well as finding an engineering firm or architect who knows about timber framing, can be much more difficult than with other types of houses.

Advantages & disadvantages of a half-timbered house: renovation, ancillary costs and more

The positive and negative effects of the shape of the house depend entirely on whether it is a new or an old building. When the building was last renovated can also play a role by having a significant influence on the circumstances of the house.

Advantages: Charm and sustainability?

What makes a timber-framed house special for you personally? This question has a variety of answers, but often the pro argument is sentimental value. Whether you grew up in a town surrounded by half-timbered houses, grandma lived in a half-timbered house, or you’re just fascinated by historic construction, a lot of things make the style special. Plus, a half-timbered house has a lot going for it architecturally:

• Historical charm
• Sustainable construction
• Stable construct

Disadvantages: Redevelopment, monument protection & Co.

Especially the purchase of an old half-timbered house is not exactly associated with the best. Unfortunately, these prejudices are often true. An old building like a half-timbered house often falls into energy efficiency classes E-H, which means it incurs a lot of ancillary costs. In addition, one or the other stone is put in the way during renovation.

• Often in need of renovation
• Monument protection
• Elaborate search for experts

Refurbishment: costs, effort and whether the investment is worthwhile

Buying an old half-timbered house and refurbishing it – many people think this is an option to get a nice home at a reasonable price. This idea comes from the fact that old half-timbered houses are often cheap to get, but there is a reason for that, because the refurbishment of the historic old buildings can go quite into the money. We have found out for you what costs you can expect and what additional hurdles you will have to face.

Refurbishment costs and subsidies: Prices & tips

Are you thinking of buying and renovating a half-timbered house? Then let that go through your head again, because a renovation, especially of a half-timbered house is really expensive. In general, you can expect that, depending on the condition of the property, the preparation costs about 1,200 € / sqm. This is almost the same price that you pay for a new building.

The only advantage: the refurbishment of the old buildings is supported by subsidies. Namely in the form of a loan with a repayment subsidy. Other options to finance the construction of the house and what exactly is hidden behind the different forms of credit, we tell you in the course of this article.

Monument protection: How do I find out whether my house is a listed building?

In itself, historic preservation is a positive thing, because it aims to preserve historical memories and bring a piece of the past into the present and future. However, at the same time it sometimes makes it difficult for buyers of old buildings, especially often half-timbered houses, to enjoy the conversion of the house.

Finding out whether a house is a listed building turns out to be quite easy. A simple phone call to the Historic Preservation Office is often all it takes to get the information. Just have the address of the property ready and simply ask.

Investment: Half-timbered houses as an investment or for asset accumulation?

Of course, it is possible that a refurbished half-timbered house brings in more money than you originally put into the good piece. However, one often used up time for information gain, endless planning and nerves, the upgrade has cost not counted in the cost calculation.

You only see expenses vs. income, but that’s a mistake because there is actually money to be made in real estate, but not so much by upgrading timbered houses, but rather by investing smartly. Should you continue to be convinced about upgrading a timbered house, hopefully we’ve already given you some ideas, but here we’ll tell you how to use real estate as an investment and increase your money.

Open and closed-end real estate funds: Real Estate Investments & Funds

Especially if you’re not quite in a position to buy your own property yet, real estate funds are a great way to make money in real estate with comparatively little risk. Open-ended real estate funds constantly change their portfolio, while closed-end real estate funds maintain their investments.

Investment funds work according to the community principle. This means that the fund starts with a certain basic amount. This is invested proportionately in various real estate projects. Which projects these are depends on the theme of the fund and the manager. You are part of a group of investors who share the investments and thus also the returns. Your profit is therefore determined by the performance of the fund and the amount of money you want to invest.

It is especially important for us to tell you that you should only invest money that you have at your disposal, because investments on the capital market should, unless you are experienced in trading, be long-term to yield profits. Also a conversation with bank advisors makes sense in case you want to gain first experience in the financial market.

Making profits from property rentals: Tips for landlords

If you look at the topic of earning money with real estate, you will always find the statement that renting is the only option to earn money with real estate in the long term. But how much money can you actually earn by renting out and what taxes do you have to pay in the course of rental income? We’ll tell you.

If you are still paying off the property, you will of course have to pay regular instalments to the bank. Apart from that, you pay taxes on renting and leasing properties. In addition, there are maintenance costs and, depending on the rental agreement, minor repairs. Is your rented property a holiday home and you are not on site for most of the year? Then you may have to deduct additional costs for a service provider from your income.

Profit = Rental income – (Taxes + maintenance + house payments + additional service charges)

Capital investments: Interviews & tips from experts

The points mentioned here are reported very neutrally, so that you can form your own opinion about the options of investing in real estate. If you want to know more about real estate as an investment, the advantages and disadvantages of funds and how real estate compares to other investments, then you can visit this article, where we among other things about the comparison of money investment in gold and real estate:

• Real estate as an investment

Buying property: What to look for in timber-framed houses

You’ve been thinking about buying a half-timbered house for a while now, or at least you can’t get the idea of owning one out of your head? Then we offer you here exclusive tips on how to find the perfect property for you and what you should pay attention to so that your investment has a particularly high probability of being profitable.

Checklist for timber-framed houses: efficiency class and ancillary costs

What does a half-timbered house have to offer to make the investment worthwhile? Particularly with half-timbered houses, great care is required when buying, because hidden traps can open up after the purchase if you have not already paid attention to the details of the house in advance.

Of course, the age and condition of the house are particularly important. How much renovation is the property in need of, what does the insulation look like and what is written on the energy certificate, because this provides information about the consumption of the house in primary energy in kilowatt hours per year and square meter. This also quickly reveals potential heating costs

It also helps to identify the need for optimisation of the house. And don’t forget: renovations of the heating, ventilation and energy system are subsidised by the state. You should pay attention to the following things:

• Monument protection
• Insulation
• Energy efficiency class
• Heating system
• Ventilation

House building & house purchase financing: useful tips and options

To make sure that nothing stands in the way of your dream of owning your own home, we have summarised a few popular financing options. If you want to learn more about the individual topics, click on the link below the summary to be redirected.

Annuity Loans: Explanation, advantages & disadvantages

This loan is the most frequently chosen form of real estate financing. Annuity loans are very easy to adapt to your own circumstances, as the repayments can be spread flexibly over the repayment period. The time period can also be adjusted quickly and offers options from 5 – 30 years depending on the amount of the loan and personal creditworthiness. Annuity loans currently offer the most favourable, constant interest rate.

• Annuity Loans: Advantages, disadvantages, repayment plan and explanation

Building loan: Interest, calculation & Co.

For a construction loan it is equally important to fit the creditworthiness of the individual. For this reason, it makes sense to compare the offers of different providers to find the right one for you. Because building loans are often fixed offers, which are less flexible in the interpretation, but also partly offer very attractive interest rates.

• Construction Loan: Current interest, interest rate, interest rate development, calculation.

Real estate loan: equity, interest, tips & comparisons

You’ve already found the right house and don’t even need to build it? Then take distance from the construction financing and look around at real estate loans. It is important with the real estate loan, as with all other financing options, that you do not use any offer from the Internet, but compare, get advice and make personal requirements. These should be adapted to your own financial requirements.

• Real estate loan: bank, loan, equity, interest, comparison + tips

With the conclusion of a purchase contract, the financing is already under the umbrella. The bills from the broker, notary, land registry and tax office come as soon as the loan is fixed. Because of this, the credit is often underestimated. Back to German Real Estate Overview.

Additionally, in the following there may be slight grammatical errors, as this article was written by a German tax expert. This does not detract from the quality of information.

What Percentage are Incidental Purchase Costs?

20% ancillary building costs should be included in the loan at least, in addition to the purchase price, and are quite realistic.

~ 20% of the purchase price

The 4 Biggest Additional Costs when Buying Real Estate

The overview shows the 4 largest additional costs you expect when buying a house. But what other costs are involved in building a house? Find out more here: House construction & the costs that come up.

Fees: Notarization of the Purchase Contract by Notary

The fees for the notary appointment are probably one of the largest items in the additional costs of the house purchase. The notary fees are fixed and may not deviate from these in any direction, but even these are quite high.

~ 1,5% of the purchase price

As a rule of thumb, about 1.5% of the purchase price has been set – and this only for the signature of the purchase contract. So if you purchase a property with a purchase price of 100,000 Euros, the notary’s fee is 1500 Euros, which, in Germany, is usually paid for by the buyer.

The exact fees for notaries in Germany are laid down in the notarial fee schedule, but can also be calculated online.

• Read more here: Notary and Purchase Agreement

Taxes: Real Estate Transfer Tax

As soon as the contract has been signed at the notary and the purchase agreement has been notarized, the buyer will receive mail from the tax office. Next, the purchase tax is demanded from the buyer.

This is incurred somewhat differently. Normally it amounts in Germany round about 3% – 6% of the purchase price of the real estate. Since the land transfer tax is a state tax, meaning each state determines their individual rates land transfer tax rate.

In some federal states, however, such as Hamburg, Berlin and Saxony-Anhalt, it is 4.5% of the property purchase price. For a purchase price of 100,000 euros, for example, you therefore pay another 3500 / 4500 euros for the land transfer tax.

Reading tip: Get to know tax planning options, from cooperatives to family foundations: Save taxes with real estate

Purchase price 100.000 Euro

This debt should be paid immediately, because only when the amount has been received by the tax office will the latter issue the so-called clearance certificate. This certificate is mandatory for the transfer of the new owner to the land register. This is arranged by the land registry office and costs again fees, which are comparatively low.

3.5 – 6.5% of the purchase price

Commission: Brokers Calculate their Share

Whoever buys a property or a plot of land through a real estate agent must of course include the commission to the agent in the overall calculation. You will usually receive the invoice from the real estate agent directly after the notarization.

How high the commission is varies and depends on various factors, such as the region. In most cases it varies between four and six percent of the purchase price of the property.

With a property purchase price of 100,000 euros, you pay between 4,000 and 6,000 euros only for the real estate agent. However, it is important to know that it is definitely worthwhile to negotiate with the real estate agent’s commission, as it is known that this is associated with a large amount of leeway.

A recommendable, total commission of 3.48 percent including VAT is a recommendable and realistic value.

~ 3.48 % of the purchase price

Supplements: Credit Interest and Installment Surcharges

The banks would like to take part in a house sale, of course, and not only through the loan interest rates. In addition to the negotiated loan interest rates, you are charged costs that are additional and usually not expected by the buyer.

These costs are not clearly visible at first glance and therefore banks are deceiving their customers. Such hidden costs can occur in the form of monthly provision interest on the unpaid portion of the total loan.

There, for example, 0.25% is charged, which the customer does not expect and which adds up to the mass. For a loan amount of 100,000 euros, this is about 250 euros per month, which you do not expect.

Additional, Hidden Costs

But there are other hidden costs that you don’t expect. These include account management, which some banks charge as a fee, but also installment surcharges if you get part of the loan paid out, depending on the progress of the construction.

With your loan, pay special attention to exactly what is written in the small print, ask about all unclear points and only sign if you are certain about all obligations.

To be on the safe side, have your bank calculate the so-called total effective interest rate or the actual effective interest rate. There, all service charges are listed in detail and clearly arranged.

Assessor & Renovation – Potential Additional Costs

Another factor that does not apply to all properties is the cost of appraisers and renovators.

Particularly with older real estate it is meaningful to hire an appraiser before the purchase, who examines the real estate down to the lattices. This includes, for example, checks on moisture and pollutants (especially for properties dating from the 1970s). Such appraisals are carried out by independent experts such as architects or civil engineers but also real estate experts.

The costs here are very different, as it depends on the type of expertise and the time required. Depending on how good the report is, possible renovation work in the future may be necessary, which should be incldued in the purchasing price as a reduction. For this reason, these assessments are critical.

Whether it is a new heating, new windows or the restoration of the roof, the costs for this case also vary greatly. Here you should note that there are usually costs for general renovation before moving in. New floors, different wall colors, a new kitchen or even tearing down a wall.

All these things again cost money, which should not be underestimated. Often there are more costs than planned, because something goes wrong, but was more expensive than calculated or small things are missing. Also note that many renovation works cannot be done by yourself. So you need craftsmen and experts to help you and they will of course calculate their working time. Before you decide on a house, think about which work would still have to be done, what you would like to renew and how much the costs for such renovation work will be.

Conclusion: Calculate additional purchase costs

In Germany, for a property with a purchase price of 100,000 euros and a loan of the same amount, expect additional costs of 9,000 to 12,000 euros.

If you do not include them in your loan amount, they must be deducted from your own capital. Such unexpected service charges should not be underestimated and can vary enormously from property to property. The higher the price of the property, the higher the service charges you expect.

• Back to our full guide on Real estate Taxes in Germany.

House Valuation

The most important criterion is the location. The real estate prices varied regionally partly considerably. Therefore only objects in the proximity may enter into the real estate comparison. As experts for the real estate sales in the regions Rhineland-Palatinate and Hessen we can give fast a realistic estimate over the real estate comparison. With the house evaluation likewise aspects of the micro and macro situations, as well as the direct location of the object are of importance: Soundscape, view and lighting conditions interest potenzielle buyers and affect real estate value and the attainable price.

Before we get deeper into the matter of evaluation of location, building fabric, market value & Co., we first ask 3 basic questions which reach us in consulting discussions with customers:

• How can I value a property?
• How does the bank value a property?

Definition Market Value: Simply explained

The fair value is defined as the price that is calculated at a certain point in time according to different wars and that is realizable for the property in the ordinary course of business. There are several starting points for determining the fair value. On the one hand, they concern the legal circumstances and on the other hand, the actual characteristics of the property. This means the state of renovation, the equipment, the location in the building, the energy certificate, etc. Personal circumstances of the owner are not taken into account. So it does not matter for the market value whether and how urgently an owner needs the money from the sale. The general demand for the respective type of property, however, affects the market value. In European law the term market value is rather not used. Here one speaks already longer of the market value.

To determine the value of a property, three different procedures for determining the market value are defined. A house evaluation takes place approximately with the real value procedure, the income value procedure and the comparative value procedure. With all valuation methods, the material value of the property is decisive first. The valuation methods are applied individually or in combination. The choice of the procedure depends primarily on the use of the apartment. For example, the capitalized earnings value method is often used for rented apartments, while the comparative value method is used in particular for owner-occupied apartments and houses.

Factors Included in the Market Value

The fair value of a property is ultimately the selling price obtainable on the market. In practice, however, the market value of a house or apartment is largely based on a realistic assessment of supply and demand: the higher the demand for a plot of land or property and the scarcer the corresponding supply, the higher the market price of the property and thus its market value.

Determine the Value of the Location by Standard Land Value

The position of the object can be determined most easily with the ground reference value. The ground reference values are determined separately for each property in Germany. However, the land value is also only a guideline value, as only the fixed average value is taken into account. The actual characteristics – advantageous and less advantageous – of the specific property are not reflected in the standard land value. The guideline value is a calculated value derived from other land sales. The standard land value plays a central role in the comparative value procedure.

How the Building Value is Determined

For a complete property valuation, the market value of an existing building is taken into account in addition to the land value. The building value is determined by its potential uses. In the case of a rented building, the annual rental income and the maintenance costs to be incurred during the same period are compared. If, for example, only a very low rent can be achieved, for example on the basis of the local rent index, the potential for income from the property is also limited. This is also included in the market value.

Costs of a Valuation

For the calculation, a rough evaluation is first made. The price for the final valuation is therefore, in most cases, based on the estimated value of the property to be valued.

If the value of the property is below a limit of 150,000 Euros, you can expect approximate costs of 1,500 Euros. For luxury real estate or multi-family houses with a real estate value of more than 1 million, the estimated fee rises to 3,000 Euro.

• Below 150,000 Euro value, approx. 1,500 Euro

Source: Federal Association of Experts

What Counts in the House Evaluation

For buildings that are not rented, the following criteria are included in the house evaluation in addition to the land value:

• Equipment
• Quality of construction

Construction quality and condition of floor coverings, bathroom, kitchen and roof are also criteria for determining the market value. Further special equipment characteristics, which differentiate the object from others in the neighbourhood, like a fire-place, the beautifuly put on garden, winter gardens, soil heatings, a swimming pool or safety and Smart technology affect the price determination. Residential properties also become interesting due to large and modern bathrooms and regular renovation measures.

Asset Value Method: this is How the Net Asset Value is Calculated

In contrast to the market-oriented determination of comparative values, publicly appointed or sworn appraisers calculate the net asset value of the property using the real value method. Only the standard land value and the production costs of the property are taken into account. However, you can also rely on the determination of the best possible purchase price in a valuation by the Lukinski real estate agents. We know which locations and features are particularly sought after in Rhineland-Palatinate and Hesse. When determining the purchase price, we took into account the current situation on the real estate market. Our valuation procedure allows exact conclusions to be drawn about the realizable market value of your property. The comparative value method used does not focus on the material value of the property, but on the selling prices that similar property offers in comparable locations actually achieve.

Always Important: Energy Efficiency

The seller is legally obliged to present the interested party with an energy certificate of the apartment or building. A small energy requirement is an extremely looked for characteristic with real estates and affects favorably the real estate evaluation. Thumb formula: The higher the energy efficiency, the lower energy costs (heating, electricity) for the buyer. Meanwhile also ideal reasons play a large role with the energy efficiency with the real estate purchase: For the climatic change modern real estate customers want to be responsible only in as small a measure as possible.

Creating Added Value: Extensions, Conversions and Renovations

Renovations or conversions that contribute to increasing the living comfort, quality and equipment of the property can additionally increase the value of the property. Save the invoices for renovations and, if possible, submit them already during our online evaluation. The professional installation of the swimming pool, for example, with details of price, year of construction and components used, will convince future buyers of the added value of the property.

In the condition of the property, the windows, roof and façade are in the foreground. If, for example, an outdated or outdated installation has been replaced by renovations, the value of the property is certainly increased. Appraisers also consider the factors relating to the condition of the property under the term “renovation backlog”: What costs can the future owner expect to incur in subsequent years? New and energy-saving heating systems, renovated bathroom fittings, door handles or additional thermal insulation are further measures that enhance the value of a property

Submit an Extract from the Land Register

The extract from the land register contains past and present events concerning the property and its development: When was the property owned by whom, which buildings were erected or changed on which date? The land registry at the local district court administers all land registry entries in the region and provides the owner with an extract from the land register on request.

Lukinski Realtor-Tip: If you wish, we will gladly obtain the land register extract for you to speed up the sales process.

Rental Agreements are Included in the Valuation

Usually not rented real estates can be marketed more easily, because many buyers would like to move in even into the new house, the bought dwelling. If objects are rented, the sales proceeds are therefore somewhat smaller under these circumstances. For capital investors however the letting status of a dwelling is again very crucial with the purchase intention.

Very important for the property valuation of rented properties are the existing rental agreements. If the potential buyer can achieve a return by purchasing the property, a rented residential property may well be of interest to investors and increase the price. The rental agreements provide information on how long the tenants have already lived in the house or apartment and how high the monthly net rent is. The Lukinski experts use the capitalized earnings value method to determine how the purchase of a rented property actually pays off.

The Final Purchase Price

Regardless of the valuation procedure, the purchase price is ultimately influenced by market events. From the buyer’s point of view, the currently demanded purchase prices seem too high to many. The salesman however has a substantial advantage with the current development of the real estate prices: by the – depending upon situation naturally – at present attainable prices many owners of real estate can sell their objects at present clearly over the actual market value.

Also we, the real estate experts of Lukinski cannot escape this trend. Our evaluations for objects in Rhineland-Palatinate and Hessen are nevertheless based on solid columns. With many years of experience in the valuation of a wide variety of properties, we can provide very reliable figures and price ranges at very short notice and with only a few details. We determine the optimum of market value and market situation in order to achieve the best possible price within the time frame you have in mind.

Since we keep our customer data available to many interested parties, your buyer may already have been found. Contact us, we will be happy to help you sell your house, apartment, company building and land.