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.

Sanierung, Modernisierung or Renovierung? Why?

Further down we explain all the details about things you have to know about renovating or refurbsihing your house or property in Germany. But first, we look at what the terms which you will often hear in the German real estate market even mean. So, what does Sanierung mean?

What is a “Sanierung”?

A Sanierung is an improvement on fundamental issues or problems which make living in a building difficult or very uncomfortable.

In German, there are multiple words for what in other countries may all fall under the term renovation. There are three types of these. First, a Sanierung, which is a very fundamental improvement and update to all things in the house, this means e.g. old sinks may be replaced. The translation of Sanierung is refurbishment. In general this is more effort than just a renovation, as a real issue is fixed. A renovierung is the second type. Here, more aesthetic things like the colour of the walls will be redone. Lastly, a “Modernisierung”. This is, as the word implies, when current state of utilities, walls, etc. are made more modern.

Sanierung is a renovation which fundamentally removes problems in your apartment, house, etc.

This article is part of our guide on German real estate and tax optimization. Learn more here:

• Save Money – Tax Optimization with Property Investments

Sanierung as Effective Increase in Value of your Property

The renovation not only provides a modern look, it also saves energy and thus increases the value of the house. For economic reasons, renovation often makes sense. This is also true if you do not want to sell the house and hope to get a higher sales price by the renovation. Because by the so-called energy renovation you can reduce your additional costs significantly, so that the investment pays off in the long run.

Risk of Damage Decreases: Selling Price Increases

In addition, the premiums for residential building insurance for refurbished houses are significantly lower than for properties without core refurbishment. This is due to the fact that the risk of damage is significantly reduced, so that in many cases more than half of the insurance costs can be saved. If you would like to sell your house and are not sure whether renovation is appropriate, you are welcome to contact us.

Holistic Refurbishment: One-time Expense

When renovating a house, it should always be considered as a whole. Because only extensive renovation leads to better living quality and lower energy costs. For buildings in desolate condition, a core renovation is necessary. In addition, under certain circumstances a roof renovation can become due. This is the only way to create the optimal basis for a renovation. Afterwards, a tight building envelope is produced, which, due to good insulation, ensures that the heating remains in the house.

This also includes the installation of a new heating system, which at least partially uses renewable energies. Multiple glazed windows with good insulation also contribute to a better energy balance.

Modernization and value enhancement at a glance:

• Increase in value through modern appearance
• Energy efficiency and economy
• Higher living quality
• Reduction of additional costs
• Higher selling price

Core Renovation & Roof Renovation

Before you start with the renovation, you should have an expert determine which measures are necessary for your house. Once you have identified the weak points, you can start planning.

Core and roof renovation is by no means necessary for all buildings. However, if you buy a old building, it can happen that you are suddenly faced with this task.

All electrical and water pipes are replaced as part of the core renovation. In many cases, this also includes the complete roof covering. The condition of walls, ceilings, floors, windows and doors is checked extensively. If necessary, these are also renovated. Existing rooms are not destroyed, however. No walls are torn down.

The core of the building remains intact. If inner walls are torn down so that only the outer walls are preserved, this is called gutting.

Property Under Monument Protection

Germany is known for its strict laws protecting monument and historic status of buildings. Special caution is required for buildings that are under monumental protection. In this case, you must contact the responsible office for monument protection and ask for the conditions for core renovation.

Various funding options are available for core renovations, so you can save a lot of money. For example, you can deduct the costs for the craftsmen from your tax return and recoup up to 20 percent of the expenses.

20% craftsmen costs are reimbursed in your tax return

However, the maximum amount for a refund is 1,200 euros. In addition, there is the possibility to take advantage of one of the many support programs for the renovation of old buildings. However, you will usually only be able to benefit from these programs if you decide to carry out an energy-efficient renovation.

The subsidy programs differ from region to region and therefore vary greatly. A certified energy consultant can advise you in this regard and help you find the right program for you.

Maintenance Reserve According to Calculation Regulation

Reading Tip! In our formula collection you will find many more important formulas for the calculation of reserves, yield & Co. calculations and examples for buying, selling and renting. Rent or purchase price multiplier, gross yield, return on equity, property yield, reserves for repairs and much more.

There are too many small hidden costs when buying real estate in Germany to remember. Our guide:

• Hidden Costs when Investing in German Real Estate

Peter’s formula

The Peter’s formula assumes a useful life of 80 years.

The formula means that in a certain time 150% of the pure production costs (building costs without costs of paying for property, development, architect, etc.) for maintenance and reorganization will come up again.

For a House
80 years useful life
150% of production costs for renovation, maintenance

For condominiums in multi-family houses, the assumption is 100%. Distributed to 65% for work on common property and another 35% for work on special property.

For a Condominium
80 years useful life
100% of the manufacturing costs

Reserves Formation

If you calculate further exemplary with an object, whose production costs are 4,500 Euro per square meter, then this results in a monthly reserve of 7.05 Euro per square meter.

Reserve: house
Production costs: 4.500 € / m²
Monthly reserve: 7,05 € / m²

For condominiums, this results in a somewhat lower reserve of 4.50 euros per square meter for the owners’ association.

Reserve: condominium
Production costs: 4.500 € / m²
Monthly reserve: 7,05 € / m²

Tip! These are divided into the aforementioned 65% for work on common property and another 35% for work on special property.

• Reserve for owners’ association: 4.65 / m²
• Reserve apartment owner: 2,40 € / m²

These costs cannot be passed on to the tenant.

Annual reserve according to § 28, paragraph 2

Also the second calculation regulation supplies in § 28, paragraph 2 reference points over the appropriate height of an appropriate maintenance reserve. These cost estimates are significantly lower than those according to the Peter’s formula, but are graduated according to the age of the building (based on production costs of 4,500 euros per square meter):

• Residential buildings which are up to 22 years old = 21,30 € / m² living space
• Residential buildings which are up to 32 years old = 27,00 € / m² living space
• Residential building over 32 years = 34,50 € / m² living space
• Building with elevator + 3,00 € / m²

Energy Renovation: Low Energy Consumption

Energy-efficient refurbishment is the repair of a building with the aim of ensuring the lowest possible energy consumption. If you do an energy update, you save heating costs, contribute to climate protection and can look forward to more living comfort.

This makes sense not only if you want to live in the house yourself, but also if you plan to sell your house.

More and more people are looking for sustainable and energy-saving houses. So you increase your chances on the housing market with an energy-efficient renovation. An important component of energy-efficient renovation is the effective and complete insulation of the building envelope. A continuous airtightness is the top priority here.

Outer Building: Outer Walls, Roof, Front Door, Windows & Co.

The building envelope includes not only the exterior walls, but also the roof, front door, windows and basement ceiling. All these parts shield the living space from the cold outside air. Poor thermal insulation of the building envelope has a catastrophic effect on the energy consumption of the house.

Up to – 50% reduction in energy demand = running costs

In many cases, the need can be reduced by more than 50% by means of an appropriate renovation.

Insulation: Mineral Fibers, Natural Insulating Materials & Co.

Various materials are used for insulation, such as mineral fibers or natural insulating materials, for example cellulose, hemp or cork. The higher the insulation thickness, the more energy can be saved. Leaks and thermal bridges must be avoided at all costs.

An airtight building envelope provides the best savings. With a modern heating system, which is largely powered by renewable energies, you can reduce the ecological footprint of your house and thus contribute to climate protection. At the same time, you can save energy with a new heating system, because most oil and gas heating systems are outdated and have poor efficiencies. Therefore a lot of heating energy is wasted.

Even if you choose a classic heating system that runs on fossil fuels, you may be able to save a lot of money.

Future-Oriented Heating Systems: Heat, Pellet & Co.

However, heating systems that use renewable energy are of course more future-oriented. You have a large selection of different systems. For example, there are heating systems that use solar energy or domestic hot water. Geothermal heating systems are also possible. Pellet heating systems are also considered climate-friendly. Which solution you choose depends not only on your preferences, but also on the individual circumstances. An energy consultant will find the optimal solution for you.

Before the “Sanierung”: Energy Consultation

Before you begin with the energy renovation, you should take an energy consultation. Only with the help of an expert can you get the best out of your house. This is due to the complexity of the topic.

A house is always an overall concept that is influenced by many small changes. These should influence each other as positively as possible. Individual renovation actions that are carried out unprofessionally often do not bring the desired effect or even lead to unexpected additional costs.

Certified Energy Consultants

In order to avoid this problem, let a certified energy consultant help you best. In Germany, these are certified and highly specialized professionals. These experts investigate the condition of the building and develops then together with you a concept for a meaningful and goal-prominent energy counselling.

He not only inspects the building, but also takes your needs into consideration and of course includes the budget in the planning.

In addition, he can point out possibilities to you that you did not even know existed before. If you are looking for a good energy consultant, you can for example contact the chamber of architects of your federal state or search the internet for a suitable expert.

State Subsidies

The German state encourages green energy, and therefore subsidizes it. Just like the energy renovation itself, the costs for the energy consultant can also be supported by subsidies. The Federal Office of Economics and Export Control subsidizes the energy consulting for single and two-family houses as well as for residential units.

• State subsidies – official site of the federal office (in German)

Redevelopment of Old Building

Renovating old buildings – Old buildings are very popular because of their unique structure. Large rooms with high windows and old wooden doors, which may creak a little when opening and closing, stand for a traditional way of life. Many of the buildings are more than one hundred years old. A renovation can give the apartments a new shine. If extensive work is planned both on the façade and the interior, it is advisable to relocate tenants in advance.

For a complete refurbishment, the move-out of tenants is even compulsory. The same applies to owners who, with the support of the owners’ association, have agreed on a renovation in a majority resolution. However, owners who have acquired a property for the first time also like to strive for a renovation of an old building with subsequent new letting. There is a good chance that the renovated apartments will enjoy great popularity in all regions of Germany and will subsequently be rented out at short notice.

Heating System

The topic of heating is not only interesting for building owners, but also for property owners. Heaters are not only necessary in a real estate, but also legally required. What types of heating are there, how do they have to be maintained and are there legal subsidies for the construction of certain types of heating or do the costs have to be paid completely by the owner?

• The whole guide: Heating

Solar heat: Solar Energy

Solar thermal is the process by which solar energy is converted into usable heat. In residential properties, the heat produced is usually used to heat water or for heating. Depending on the location and conditions of the property, this system can completely replace the previously used heating system.

State subsidy of 2,000 euros

Gas Heating: heating with natural gas, liquid gas or biogas

Gas heating is probably the most widespread type of heating in Germany and rightly so, because the system offers many advantages. Modern technology, efficiency and inexpensive offers characterize the gas heating. In addition, they are easy to combine with renewable energies, save space and can be easily installed during modernization and renovation.

Oil Heating: Heating with fuel oil or bio fuel oil

Oil heatings are after gas heatings the probably most frequently occurring systems in Germany. The function mode is simple and works for decades in the same way. The fuel fuel oil is pumped over an oil pipe to the heating system where it is sprayed and burned. The heat that is generated during this process is used to heat up the heating water and thus to heat the house. Most of these components can be found in the boiler, which now takes up little more than one square meter of space and can even be hung on the wall, depending on the model.

Pellet Heating: Ovens with pressed wood residues

A modern pellet heating system is known for low fuel costs as well as for environmentally friendly heating and is therefore one step ahead of conventional gas and oil heating systems. Also the function mode is relatively simple. The wood pellets are periodically delivered to the combustion chamber by means of a feeder, so the correct filling is fully automatic. The heat generated by burning the pellets is used in a separate boiler to heat the water. Thus, both the heating can be operated and the hot water can be produced.

Rental: Laws, Taxes & Tenants

Renting a property can be a great extra income, but it can also become your main job. Landlords have many duties towards the tenant and have to take care of the property. However, if this is successful, a lot of profit can result. We will explain how you can best let your property and how to find the right tenant for you.

There is so much to learn!

The Right Tenants, Suitable Lease & Co.

How do I set the rental price correctly? How does my advertisement appear attractive? And how do I draw up a suitable and fair rental contract? A future landlord asks himself all these questions, because in order to successfuly rent out a property, a lot of knowledge and experience is required. But if you follow a few simple steps, you will make the leap to a successful landlord and profit from the earnings.

In addition come: Landlords have many duties and tasks, among these are for example the organization when changing tenants or the annual preparation of a service charge statement for the tenant. The rent can be set with the help of the local rent index, but it must always be considered whether the region concerned has a rent brake or not. The rental agreement should be fair for both tenant and landlord and should regulate all important points. When choosing the right tenant, it is not only the sympathy effect that counts, but also other important factors, such as creditworthiness – learn everything you need to know about renting your property in our article.

The correct tenants, suitable lease & Co. read on here:

• Leasing out House & Apartment.

Conclusion: Renovate Property

A core renovation brings your property up to date and increases its value at the same time. It increases the comfort of living and in most cases also reduces the energy consumption of the house. As a result, energy costs and the C0² emissions of the house can be reduced. Since in the long run a change to non-fossil fuels from heating systems is inevitable, you can also equip your house for the future. In order to carry out a renovation as effectively as possible, it is essential to seek the advice of an energy expert.

Thinking about buying a house? These are the best methods to save money on your investment

• Saving Money – Tax Optimization on German Real Estate

The basics – fireplace as a feel-good zone and focal point of the living space

A fireplace requires a certain amount of expertise that should not be underestimated. Especially when deciding which fireplace is the right one for your home, you should inform yourself in detail about the different types of fireplaces and how they are used.

General knowledge of fireplaces – flue, emission values & the ecological balance sheet

First of all, you should know that every fireplace needs a flue. Without a flue, also a chimney, a fireplace is not a fireplace. The absolute exception are bioethanol fireplaces, but since these do not cause smoke and therefore do not require a flue, they are strictly speaking not considered a fireplace. The district chimney sweep clarifies what a flue has to look like. He is also responsible for the acceptance of the finished fireplace. If you want to install a chimney in the house you have bought, you must first find out exactly whether a flue was installed during construction. If this is not the case, the whole thing is more difficult than thought and they may have to resort to an outdoor vent.

Tip! Heating system in comparison

Save up to 55% costs (heat energy)? Tip! Not only already, but practically? Save energy with the heating system in your property. Use the next time for renovation or your upcoming new building. Here you will find our guide heating systems: solar, oil, gas, heat pump, pellets in comparison and as extra, state subsidies. Continue reading here:

• Heating system: comparison

Fireplace in modern condominium(Berlin):

Fireplace integration country house(Mallorca)

The next question is whether to choose a fireplace with or without a door. This has not only optical differences but is crucial for the functionality of the fireplace. To use a fireplace without a door only for the purpose of the crackling effect is far from modern and should be avoided not only for the protection of the environment but also for your own health. These fireplaces have not only a shocking fine dust emission but also a very bad ecological balance. Because of this, it will no longer be permitted to own a fireplace without a door from 2024. By then, a fireplace must not only have a door and a filter against fine dust, but also proper emission values. This is prescribed by the regulation BImSchV (Federal Immission Control Ordinance). So if you are thinking about a fireplace now, you don’t need to consider a version without a door. Fortunately, there are still great alternatives to not lose the crackling effect.

Fireplace models – a question of taste & functionality

There are many different fireplace models, but when choosing a fireplace, you should not limit yourself to the visual aspect and also consider the different functions of a fireplace. Which fireplace model best suits your property therefore depends on many different factors and your requirements.

Glass fireplace – cosiness factor and campfire atmosphere

Of course, the rule with fireplaces is ‘the more you see of the fire, the higher the cosiness factor’. Therefore, a glass fireplace is a great alternative to a fireplace without a door, as it has almost the same effect. A glass fireplace looks most cosy with three open sides, as this way the fire can not only be seen from every side, but also the cosy light spreads everywhere. Such a glass fireplace is made of special glass in the form of glass ceramic. This gives the same effect as a campfire. There are such fireplaces even without a visible handle on the glass window, which makes the whole thing even cozier. For this, however, the fireplace must be installed in a recessed position.

Hanging fireplace – individual and danger reducing

A hanging fireplace is also an alternative that should not be underestimated. This model originally comes from Scandinavia and offers a great variety, as it is not bound to one corner in the room. The fireplace can be mounted anywhere in the room on a wall and thus also heat all around. In addition, the risk of burns to children and animals is greatly minimized as the fireplace is not hanging within their reach. Firing, stoking and cleaning is also easier with this model, as you don’t have to bend down to the floor, but can work at eye level – you’ll even be spared the backache.

The Danish fireplace – the classic with personalization

The Danish fireplace is the last model that has already established itself as a classic in just a few years. It is the continuation of the ordinary stove and is now available in many variants. It has been equipped with a larger viewing window, which creates more cosiness. It also has a new modern technology, a combustion chamber that increases the efficiency and self-closing doors. A big advantage of this stove is that it is not permanently installed, so it can even be moved. Danish fireplaces are now available for turning, with an additional heating plate, but also some that can be heated with pellets, gas, brown coal or hard coal. An all-rounder that is suitable for every house and can be individually adapted to the needs.

Fireplaces as heating systems – stoves, tiled stoves and gas fireplaces

Of course, you don’t just want to use your fireplace to warm your soul and your living room. A fireplace can be used in many other ways. This includes, among other things, heating the whole house and not just one room. Of course, this includes special pipes, pipes – and energy supply systems.

Pellet stove as a heating system – energy efficient and environmentally conscious

The first way to use your fireplace as a heating system is the pellet stove, in which you heat not with wood but with pellets. Such a fireplace is particularly suitable for energy-saving houses. It is heated with wood pellets which are made from wood waste such as sawdust. They have a much higher efficiency, because they burn longer than the same amount of wood. To heat the whole house with such a fireplace, it must be connected to the hot water supply. The advantage is quite clear that a fireplace with a heating function not only protects the environment, but also the household budget. Unfortunately, the installation of such a fireplace is very costly, which is why the appearance is often neglected and there is only a small window. The coziness falls by the wayside, but it is always nice and warm everywhere and without a guilty conscience. Complementary to such a heating system is a solar system on the roof, which can heat the water in the summer. For such a system, a hot water tank with a minimum capacity of 1000 liters is needed, but it fits well in the basement.

Gas fireplace as a heating system – modern and uncomplicated

But also with a gas fireplace it is possible to heat the whole house and this even offers some advantages. For one thing, the cozy factor is not lost, because the flame can flicker peacefully behind a glass door and delight her heart. Behind the façade, however, there is a sophisticated system of ventilation heating that can be used throughout the entire house. This fireplace is operated with natural gas as well as with propane gas, which may be installed in a liquid cartridge with up to 11 kilograms. According to the manufacturer, this lasts up to 25 hours and provides heat. Another advantage not to be sneezed at, however, is that the fireplace and the air remain clean. There is no soot, the fireplace rarely needs to be cleaned and there is virtually no fine dust. And despite all this, not even the efficiency suffers, because it is at a respectable 70 percent. An alternative that you should definitely think about.

https://www.instagram.com/p/Bfyops-FvtU/?tagged=gasfireplace

The tiled stove as a heating system

Probably the oldest model among the stoves is the tiled stove. However, its history proves its effectiveness, because it can heat up for between 12 and 24 hours and thus provide cosy warmth. Wood, pellets or even coal are burned here. In the meantime, even windows can be found in the tiled stoves, as the feel-good feeling has simply become too important and consumers can no longer do without it. The efficiency can also be seen, because a tiled stove burns its fuel completely. In addition, tiled stoves have the reputation of being particularly comfortable, as the radiant heat is even and the air layers are not confused by it. So the tiled stove should also be considered if you are looking for a fireplace with heating function for the whole house.

Outdoor fireplace

Firewood: Do-it-yourself, chopping & stacking

Firewood & Fireplace Wood Storage – Larger quantities of firewood, are often stored on properties. The garden or a barn are often used for storage. Larger quantities of firewood, once stored on a property, must be stored in a fire protected location. This measure is regularly inspected by a chimney sweep. In this article you will find tips and videos on storing, DIY, stacking and chopping firewood for your fireplace:

• Tip: Firewood + Storage

Build your own fireplace?! Video tutorial: Installation

So you can also build and connect your fireplace yourself.

Heating guide: types, prices & comparison

Heating & Types – The topic of heating is not only interesting for builders, but also for property owners. After all, heaters are not only necessary in a property, they are also required by law. Which types of heating are there, how do they have to be maintained and are there legal subsidies for the construction of certain types of heating or do the costs have to be paid completely by the owner? Especially when building a house or renovating and modernising, the heating system plays a decisive role, because a large part of the later running costs depend on it, for you or for your tenants.

When deciding on a heating system, a number of things need to be considered, as there are major differences. Depending on the property, it must be decided individually which system is best suited to efficiently heat the entire property. The systems differ not only in environmental friendliness, but also in efficiency and price. Solar, oil, gas, heat pump, pellets:

• Heating: Comparison & Costs

Construction loan or real estate loan?

Choose the loan for home financing based on your financing project – The financing methods are similar, but still have some important differences for your financing project. With a classic construction loan, you can finance a new construction project cheaply.

You should bear in mind that the loan is not paid out in one sum, but in tranches per construction phase. For the house purchase of an existing property, a construction loan is therefore unsuitable, so you need another form of home financing.

Choose the loan for home financing based on your financing plan

Frequent questions in counselling interviews are in particular:

• How do I get a home loan?
• How much equity should I put into my home financing?
• What do I need to consider when financing a home?
• What support is available for home financing?

Annuity loans, forward loans or combined financing

You have the option of financing your property via an annuity loan, a forward loan or a combined financing including a particularly low-interest KfW loan. The decisive factor is whether you are a first-time or follow-up financier, when the purchase of a house is on your agenda and whether you want a full repayment loan or a property financing with equity. There is no one-size-fits-all home financing solution for every potential homeowner.

Therefore, we recommend that you contact experts with your request and discuss the topic of home financing based on your ideas, wishes and possibilities. Based on your financing plan, they will create an offer for you, with which you can finance cheaply and with a home loan that suits you.

Tip. All real estate loans at a glance & comparison

Would you like to fulfil your dream of owning your own home, a condominium, a building plot or a commercial property? Then the right choice of real estate loan determines how high the interest burden and thus the total cost of your real estate loan will be. Even when choosing a real estate loan, you as a potential buyer are faced with many questions and considerations, such as whether you should choose a classic annuity financing or opt for another form of financing. Follow-up financing is also possible in various ways. Ultimately, you are faced with the question of whether you are better off with a long and fixed debit interest rate or with a flexible real estate loan.

• Real estate loans

New construction or existing properties

If you are buying a new building, you are well advised to take out a fixed home loan with no additional scope for modernisation or energy-efficient refurbishment. Based on the value of the newly built property, you can take out an annuity loan secured by a land charge. With a fixed monthly instalment, you are well advised with this solid home financing and benefit from the fact that there is no change during the period of the fixed borrowing rate.

If you would like to finance more flexibly and not be tied to a long-term interest rate when buying a house, there are other house financing options. The attractiveness of an offer is determined by the match of the financing to your ideas and your personal wishes regarding the repayment and fixed interest rate.

Real estate agent & your advantages through experts

Real estate agents with many years of experience offer you the advantage of financing your new construction or existing property purchase project in the best possible way and opting for a worry-free and cost-secure term.

If your heart beats for a charming existing property and the need for modernisation is prevalent, they will be happy to advise you on home financing with a connected modernisation loan. Hardly any other type of loan offers as much scope as real estate financing. If you want to fulfil your dream of a house and need help in the jungle of financing options, you are on the right track with good brokers. They will help you find the right financing method and benefit from an offer that underpins your decision to buy a house with the advantage of tailor-made home financing.

Home financing: How much equity is advisable?

We recommend that you include existing equity in your home financing. With an equity ratio of between 20 and 30 percent, you can secure some interest rate advantages.

Equity ratio between 20 and 30 percent

Your equity lowers the net loan amount and the term, making you “debt free” much faster with your own capital investment. With a good credit rating and other collateral, it is possible to fully finance a house without any equity at all.

We will be happy to find out whether home financing without your own financial commitment is suitable for you as part of an initial consultation. You can obtain an initial overview of the conditions under which we can support your project with home financing by requesting a quote for real estate financing.

Equity means a better return

If you have equity, you should not push for full repayment in favor of a better interest rate and pay longer and more that way. It is understandable and a wish of many of our customers to hold back a small amount of equity for unforeseen repairs or purchases.

Acquire existing property & modernisation

If you are purchasing an existing property and are planning a modernisation or want to ensure greater energy efficiency, you can ask us directly about home financing with scope for the desired craftsmen’s services. We know from experience that such a combined home financing is more favourable for you than a real estate loan, which you apply for without equity at a much higher interest rate.

Calculator: rate, repayment rate, residual debt

What will your planned construction financing cost you? But much more important in everyday life, how high will your monthly burden be and what happens if the repayment rate changes later? How high will the remaining debt be at the end of the fixed interest rate? Many questions, this rate calculator gives you all the important answers to rate, repayment rate and residual debt.

• Rate calculator

Properly plan house remodeling – analysis, budget and goal setting

As an owner who wants to sell their home and get the best price possible, consider having renovations done beforehand. This can make the house more attractive to the buyer and increase the general interest. Sometimes, however, it makes sense to forego renovations and leave them in the hands of the buyer. In this case, however, a significantly lower purchase price can usually be achieved. Here it is important to carefully weigh up the costs and benefits.

Through a well-planned home remodeling, old properties can be designed in a new way. For the success of the project, thorough planning and cooperation with professionals is of great importance. Seek the advice of architects, structural engineers and tradesmen and choose a company you trust to meet your needs and expectations. Whether a house conversion makes sense when you sell the property must be decided on an individual basis. If you are unable to sell the property without remodeling, it is worth the effort. If you are looking for professional home selling assistance, give us a call!

Before the start of the conversion, some considerations must be made. Make clear what your ideas are and to what extent you want to change the existing property. If necessary, you can seek advice from an experienced architect. List everything you want to change and which parts of the house are affected. Also consider whether you are planning an extension in addition to the conversion to increase the living space.

• How much does it cost to remodel a home?
• What is the cost of remodeling old house?
• What do I have to look out for during the conversion?
• How much does it cost to hire an architect for a remodel?

Planning phase and building analysis

Establish a preliminary approximate schedule and include delays in the calculation. These can occur unexpectedly due to undiscovered defects. Also set your budget. Once you have documented your ideas, the concrete planning phase can begin. This absolutely includes a building analysis by a professional. A master builder is the ideal contact person for this. He or she can identify defects and structural damage and give you a more accurate time frame for the remodel. It is also necessary to talk to a statistician. This person will inform you about the building regulations and check the statics of the building. It is essential that load-bearing walls remain standing. Now it will quickly become clear which of your ideas are feasible and which are structurally impossible. Compare your new findings with your original planning and create a new conversion plan on this basis.

Financing plan – craftsmen, material costs & financial reserve

Now you can create a financing plan. To do this, you can obtain various quotes from tradesmen and construction companies. Compare the prices and keep an eye on your budget. In addition to the costs for the craftsmen, there are of course also material costs. Create a cushion and ensure you have a financial reserve of about ten percent of the total budget. This is for unforeseen costs.

Permits for conversion work

A number of permits must be obtained prior to remodeling. Not all remodeling work requires a permit. However, if you are planning to add a storey or an extension to the house, you will need permission in almost every case. Even if you are converting the house to create a granny annexe or you are having a conservatory built, you will often need permission. Since these regulations differ from state to state, no general statements can be made. It is therefore essential to enquire at the relevant building authority. If you plan your conversion together with an architect or engineer, you can rely on their expertise. Craftsmen who are authorised to submit building documents are also familiar with the regulations.

This is how you find competent service providers for the conversion

For the remodeling of your home, it is best to turn to master companies. They stand for quality and have the necessary skilled workers. When choosing, pay attention to the focus of the respective master craftsman company and which projects they normally carry out. References are always a good indication when it comes to the quality of a company. Smaller renovation tasks that you would also like to have carried out in the course of the renovation, such as laying new floors, can also be left in the hands of independent craftsmen. Contact regional master craftsmen and meet with a contact person in person. Home remodeling involves large sums of money. A get-to-know-you meeting can build trust and eliminate doubts. When you feel you’ve found the right company, you can ask for a quote after inspecting the property together. It is best to get quotes from different companies.

Request alternative offers from trades

You may have to hire different companies anyway. It always depends entirely on what and how much you want to remodel. A company that moves your walls may not be able to tile the bathroom. Once you have decided on a quote, a contract will be signed. In it, all of the remodeling work you plan to do should be put in writing. Since each remodeling project is individual, the contract should also be custom made. Model contracts cannot capture the complexity of the project and are therefore useless. To be on the safe side, you can have the contract checked by a lawyer. However, bear in mind that this may involve further high costs.

Delays and fixed price

If delays occur during reconstruction, the service provider is not always to blame. Construction measures rarely run without problems and additional obstacles. There are many reasons for this. For example, undiscovered defects that become apparent during the remodeling process cause time delays. In addition, you as the builder may change your mind about details during the remodel and order additional work. This can also cause the schedule to be blown up. In this scenario, always keep an eye out for additional costs coming your way and ask the service provider to let you know if there are any new costs. This way, you’ll keep an eye on your budget and end up with a bill that won’t bankrupt you. Alternatively, it is possible to negotiate a fixed price with the tradesman.

Final building inspection

After completion of the project, the building inspection is due. Take a look at the result in peace. Even if you are not an expert, you can at least judge whether everything looks neat and works. If you are working with an architect, he can of course accompany you and advise you. If you notice any defects, these must be rectified by the tradesman. Set a deadline for this, unless this is stipulated in the contract. Only when everything is to your satisfaction will the invoice be paid.

Difference between a renovation and a refurbishment

A renovation is a visual improvement in which visible damage is repaired and living comfort is enhanced by better equipment, for example in the bathroom or kitchen. In this way, renovation differs from refurbishment, in which structural defects are removed. Renovation is therefore not absolutely necessary, but can lead to a visual upgrade and make the property more interesting for potential buyers. Wallpapering walls, repairing minor damage to the facade or laying new flooring are all part of a renovation. So, a renovation does not mean the complete renewal of the house. Instead, details are tweaked to make the property look more inviting overall. First impressions count and cannot be repeated. In order to appeal to as wide a range of people as possible, the renovation should result in a result that is as timeless and neat as possible. Extravagant wall colors and gold-plated fixtures in the bathroom appeal to only a small percentage of the population. Brightness, cleanliness and an immaculate condition of the property, on the other hand, are universally rated as positive.

Upscale, normal or simple equipment

Upscale, normal or simple equipment?

Adapt renovation to real estate

You’ve probably seen real estate listings that advertise upscale amenities.

Other offers talk about a simple or a normal equipment. This is understood to mean different standards, which of course affect the purchase price and may attract different clientele. With a targeted renovation, you can give your property the desired standard. It makes sense to adapt the furnishings to the property as much as possible.

A villa or a spacious apartment in the city centre, for example, can be better advertised with upscale furnishings. Potential buyers are prepared to spend a lot of money right from the start and want the interior of their dream property to meet their requirements. A small terraced house in the suburbs, on the other hand, is better suited to normal or simple furnishings.

Location and neighbourhood: influence on building elements

The surroundings and the location also play an important role when deciding on a standard of equipment. By looking around the neighborhood, it is usually easy to see if your property fits in with the surrounding area. If the home is in an area with mostly upscale homes, buyers who want to live in an upscale environment are more likely to be interested. Before you take action, plan your renovations accordingly.

Upscale equipment

Upscale equipment must meet high standards. Bathroom, central heating and double windows are mandatory here. The flooring can be high-quality carpet, natural stone or parquet. In the bathroom and kitchen there is a tiled floor. In addition, no supply lines may be visible. They disappear invisibly under the plaster. With the appropriate renovation work, you can give your property an upscale standard. Other extras, such as a fitted kitchen, integrated lamps or an alarm system also contribute to an upscale interior and are considered a luxury by buyers.

Normal equipment

Houses with normal equipment are equipped with double windows, at least on the windward side. Here, too, the utilities run mostly under the plaster. Bathroom and kitchen have a tiled floor. There is also central heating. Basic fittings are houses with single windows, linoleum or PVC flooring and no central heating. Many supply lines run above the plaster. A less than optimal layout of the rooms can also result in a classification in a simple equipment. Through renovation work, you can transform a house with simple fittings into a property with normal or upmarket fittings and thus appeal to completely different groups of buyers.

Renovate different living areas

You need to properly weigh the costs and benefits when renovating different living areas.

Weighing costs and benefits correctly

In a house, there are many construction sites that are candidates for renovation. One of them is the bathroom. A renovation makes sense if there is visible damage or if the equipment is no longer up to date.

Bathroom: Tile, WC, tub & shower

Bathrooms with small tiles and trees on the wall tiles are no longer in line with current tastes and are considered outdated. They can look unattractive to the buyer. So new tiles are a worthwhile investment. However, replacing the toilet, bathtub and shower is very costly and does not always make sense. Here it is important to weigh the costs thoroughly against the benefits and question the necessity. In a house with upscale furnishings, however, the sanitary facilities should also be brought up to date. Outdated bathrooms are a reason for buyers in this price segment not to buy the property.

Kitchen: renovation and modern look

The renovation of the kitchen can also be reflected positively in the purchase price. A modern kitchen can increase the purchase price by 4.5 percent. In this way, a few thousand euros can be gained in many cases when selling real estate. However, the costs for the kitchen must be deducted. If a kitchen already exists, a new one does not necessarily have to be installed. Old fronts can easily be replaced with new ones. A better interior additionally enhances the value of the kitchen. Modern electrical appliances make the superficial renovation complete.

Living areas: Wallpaper, Laminate & Co

A renovation of the living areas is almost always worthwhile. It makes for a neat and tidy impression. Depending on the condition of the house, not all walls need to be re-wallpapered and all floors need to be re-laid. Wallpaper that is in good condition can be painted over and wooden floors can be sanded down. Damage to laminate flooring can be repaired with laminate infill and defective tiles can be replaced individually. However, if you want to raise the standard of the decor, it may be necessary to replace the floors, for example. Also bear in mind that certain floor coverings are considered out of date, despite their high quality. Carpets, linoleum and cork flooring are no longer desired by most buyers and will reduce the purchase price for this reason alone, even if they are in good condition.

Wallpapering is always advisable

Wallpapering the living rooms, on the other hand, is always advisable when the old wallpaper no longer accepts paint or cannot be painted over. For example, a woodchip wallpaper tolerates about six coats. If you decide to redecorate the living rooms, you can choose between different types of wallpaper. For living room and bedroom normal paper wallpapers or non-woven wallpapers come into question. In the kitchen or in the hallway, however, waterproof latex wallpapers are a good choice. They can be easily wiped off and are therefore the perfect choice for heavily used areas.

Conversion of older houses and apartments

Many older houses and apartments have great potential in terms of a new design. It is not always necessary to demolish the building and build anew. This variant is often chosen by builders. However, it is not very profitable. Demolition sometimes involves high costs, especially if there are harmful substances to be disposed of. In addition, there are the costs for the new building. In many cases, it makes sense to consider rebuilding. If the substance of the building is in good or very good condition, the property can be gutted and remodeled. If you own an older building that you would like to sell, we would be happy to make an appointment with you for an individual inspection. Together with a building expert, we can decide whether the building is suitable for a comprehensive conversion and can be offered on the market accordingly. Since the demand for real estate in Hesse and Rhineland-Palatinate is high, we can successfuly assist you in selling your property in most cases. Get in touch with us without any obligation. We look forward to your call.

Prerequisites for a successful conversion

Before you decide to remodel an older home, it is important to find out what is feasible. Surely you have many ideas that you would like to implement. What is possible and what is not, however, depends on the condition of the building and the statics. For many builders, the question of cost also plays a very important role.

Verification of the statics

Before you start with the actual conversion, a review of the statics is required as part of the feasibility study. It is a great advantage if you are in possession of building plans. These make a statement about the way in which the building was constructed. In principle, it is possible to tear out walls and reconstruct them. However, these must not be load-bearing walls. If you remove them, the consequence may be the collapse of the building or some parts of it. If you want to remove a load-bearing wall, it is important to support the building beforehand. You are hardly limited in terms of what you can do. However, changing the statics is a cost issue. Many measures related to maintaining the statics are expensive and may only be carried out by a professional. In any case, a comprehensive renovation should be accompanied by an experienced structural engineer. However, if you limit yourself to comprehensive renovation work, you can do without a structural engineer and save the costs.

Calculate costs safely in advance

If you have decided to remodel because building a new home was too expensive, your funds are sometimes limited. However, a comprehensive remodel can also yield very nice results. A complete remodel sometimes costs as much as or even exceeds the cost of a single-family home. Basically, though, you can operate within your margin. Even if you only have a small budget, a lot can be made of it. Also consider whether you would be willing to do your own work. You will save money on the labor hours that you would have to pay to the tradesmen. Technical skills and a good hand are important prerequisites for the provision of personal services.

Redesign walls and floors

Remodeling a home involves many small investments. If you decide to completely gut the house and completely redesign the interior, you will have to reckon with a five-figure sum in the low to medium range in any case. The design of the walls and floors alone will cost 10,000 EUR or more. The high financial expenditure for the craftsman hours is already included in this amount. However, it makes little sense to take on the laying of the floors and the wallpapering yourself if you are not experienced in this. In this case, you should hire an experienced craftsman and look for cost savings elsewhere.

Bathroom and kitchen planning

There are a variety of beautiful design options for the bathroom and kitchen, but they are very costly. The advantage of remodeling the house is that you can re-route pipes and electrical wiring. So it is possible to install taps, toilet and shower in a different place. You can even choose a different room if you don’t like the previous layout. However, again, plan for a five-figure sum in the lower or middle range.

Determine real costs

The total cost of a remodel can quickly exceed 100,000 euros. A comprehensive redesign with the assistance of a structural engineer quickly exceeds the costs you would have to bear for a new construction of the house. It is important that you compare costs and benefits and really include all the little things in your planning. Define generous sums by rounding up significantly. Then add an amount of 10,000 euros for the things you have forgotten. Then you are protected from unpleasant surprises and may even have capital left over with which you can fulfil some special wishes.

Allow for buffer: planning costs + 10%.

Converting a house can be an attractive alternative to buying a new one. It is important that you clarify, if possible before buying the property, which planning you can implement and what costs you will incur. You should only complete the purchase when you are sure you have found the right property. Contact a structural engineer and have a feasibility study done. Only when all the plans are feasible to your satisfaction is it the right time to buy the property. Would you like advice from a professional? We are happy to be of service to you. Simply make an appointment for a non-binding discussion.

Conclusion: Renovation before selling the house

Renovation work before the sale of the house is reflected positively in the selling price. However, the costs and benefits should be thoroughly reviewed beforehand. If you decide to renovate, you should refrain from extravagant experiments. Because you do not know the taste of the buyer. Timeless, bright and well-maintained rooms appeal to most potential buyers. In addition, you should think about the desired standard of furnishings and plan the renovation accordingly. By replacing floors and wallpaper and renovating the bathroom and kitchen, you can specifically improve the standard of furnishings and thus improve your chances on the housing market.

Avoiding trouble with tradesmen – delays, mistakes & waste disposal

What is the best way to escape the hassle of tradesmen? Who is really responsible for the resulting garbage and what rights do you have in case of delay or non-observance of the appointment? So that you are prepared for the next visit from the craftsman, all questions around the topic of craftsmen are answered here.

Lateness – tolerance for appointments and punctuality

In principle, craftsmen are given a tolerance of fifteen minutes. However, if you are more than a quarter of an hour late, you are entitled to anew appointment. In this case, the arrival and departure times may only be charged once. If, for example, you have to go to an appointment and the craftsman is late and then stands in front of a closed door, this arrival and departure time may not be charged. However, you can very rarely claim compensation for such a case. Employees who have taken paid leave for the appointment usually come away empty-handed, since the waste of free time is not damage according to the legislator.

In order to protect yourself, you should agree a written contractual penalty with the craftsman’s company for larger construction projects, which becomes due when the deadline is exceeded. For smaller projects or assembly work, however, such an arrangement is not worthwhile in most cases. So if there are no claims for damages, you can still do something about a significant delay or a cancelled appointment without a cancellation. You can, of course, demand a new date and set a reasonable grace period for this. This varies depending on the case. For urgent matters, such as water damage, your deadline may be set quickly. For simple installation work, two weeks is a common deadline. Send a reminder with the deadline by registered mail to the craftsman and only if no result is achieved after the reminder and the craftsman is still not on time, you can withdraw from the contract with the company and hire another. Freelancers, in contrast to employees, can claim loss of earnings as long as they had an appointment with the craftsman, but he still reschedules you.

As a general rule, tradesmen only have to pay compensation if they themselves are at fault. This includes, for example, delays because the craftsman took longer at the previous appointment or because he forgot materials. They are also liable for damages if materials are not delivered by third parties, because craftsmen bear the so-called procurement risk. Our guide: insurance guide. However, you do not have to pay compensation if the accident at work is due to a serious illness or force majeure. This includes, for example, storm damage in the company.

Garbage, tools & materials – who is responsible?

Craftsmen should leave their workplace swept clean. So if there is a job that causes a lot of dust, the craftsman must sweep the affected area afterwards and leave it swept clean. The rubbish that accumulates during work must also be taken away and disposed of by the tradesmen. When replacing a device, you should agree with the company that the old device and the packaging of the new one will be taken away by the craftsman and disposed of properly.

As a rule of thumb, a quarter of an hour is charged for the journey to and from the company. However, it is best if you agree a flat rate for travel costs with the company in advance. If the craftsman forgets materials or tools, you do not have to pay for the travel costs or the time taken to obtain the new tools/materials. However, if you change your mind and, for example, get a different wall colour painted by your painter, he can transfer the additional costs incurred to you.

Legal basics – what claims and rights do you have?

Often clients do not know the rights and claims that you have against the craftsmen. A small list with the most important conditions:

• Workmen must take their own rubbish with them
• Hourly wages are calculated according to qualification: semi-skilled workers and apprentices are charged less than journeymen or master craftsmen.
• If materials or tools are forgotten by the workman, he may not charge for the journey and the additional time
• Replaced devices must be taken away and disposed of
• If the craftsman is more than 15 minutes late, you are entitled to a new appointment. Arrival and departure time may then only be charged once.
• In the case of assembly work that can be carried out by one fitter, it is not necessarily necessary to pay two fitters.
• The work site in question must be left swept clean
• Calculations per hour or part thereof are inadmissible unless agreed in advance.

So that you can be really safe with their next craftsman however, there are still some legal tips, which it gives to consider. Before you decide on a craftsman company, it is advisable to compare in advance both the hourly rates as well as the material prices and the conditions of the company. It is not only price that is important, but also the qualifications. A good company will save you a lot of stress later, which is why it pays to search in advance. Fees for an estimate may only be charged by tradesmen or the company’s customer service if this has been expressly agreed in advance.

Of course, the safest thing for you to do is to agree on a fixed price right from the start, which should not be exceeded in this way. Such fixed price agreements should be regulated in detail and both the scope of the work to be done and the materials should be specified in the order. However, some craftsmen do not offer this service. Therefore, tradesmen without a fixed price must inform them immediately if the estimated costs are significantly exceeded. If the costs are exceeded by 15 to 20 percent, you can cancel the contract, but you still have to pay for the partial services that have been provided up to this point.

Once the work has been completed, you should check whether the services and work have been carried out properly. You do not have to pay for work that is not included in the contract. Do not pay the bill until the acceptance was satisfactory and everything was done according to the contract. If in doubt, consult a specialist. If there are any defects, you must document them on photos. The company must rectify the defects and as long as this has not been done, you can retain part of the invoice amount due until the defects have been rectified. The rule of thumb here is to withhold twice the amount of what it would cost to fix the defects. However, if you discover a defect after acceptance, the company must correct the defects free of charge within a reasonable time. If the defects are not corrected or are not successfuly corrected, you can commission another company to carry out the corrections and claim the costs from the original tradesman.