Terrace apartment: What is a terrace apartment? – Definition

A terrace is usually sold in the real estate world as the highlight of an apartment. But what is a terrace actually? What criteria must it fulfil in order to be sold as such? Do I have to pay attention to anything special in rental contracts? All these questions will be answered in the following paragraphs!

Are you looking for a suitable apartment – whether as a tenant or investor? Then take a look at our guide to apartment types A-Z!

What criteria must a terrace meet?

The name terrace comes from the Italian language and is derived from “terra”, which means “ground” or “earth”. This meaning of the name sums up the typical characteristic of a terrace: by classical definition, a terrace is at ground level.

“A patio means a ground level space that is exclusively assigned to an adjoining living space, has a hard surface floor covering, and is suitable for the placement of tables and chairs.”

On a legal level, a terrace is defined as just explained. So that you can avoid landlord traps, i.e. not paying for a terrace that may not be defined as such, we have created an overview list that points out the most important aspects:

• Ground level square
• Adjoining a dwelling
• Existence of a solid floor covering
• It must be possible to set up patio furniture (tables, chairs, etc.).

Classic terrace vs. modern terrace

The classic definition of the terrace clearly limits the creative scope of those. The 21st century has stretched this concept. A terrace apartment does not necessarily have to be located on the ground floor with a terrace at ground level. The following is an overview of the most popular terrace apartment variants:

• Ground floor terrace apartment with garden
• Modern architecture with terrace-balcony
• Dream terrace in the form of a rooftop terrace
• Roof terrace with view
• Etc.

Apartment size: Does the terrace count towards the apartment floor area?

The discovery of an apartment including a terrace often triggers feelings of happiness. However, when it comes to calculating the area of the apartment, this often gives way to bureaucratic chaos. Therefore, the following questions often arise: Does the terrace square metre count towards the floor space of the apartment? To what extent must a terrace be taken into account when calculating the living space? Are there legal regulations for this? The answer is yes – there is a regulation, which however does not apply to every terrace variant.

The WoFIV (Wohnflächenverordnung) 2004 has decided that only 25 percent of the terrace floor area is included in the total floor area. However, there are also exceptional cases. Here, processing and location must be taken into consideration. With extremely complex processing and unusually good situation of the terrace up to 50 per cent may be taken into account. This type of calculation is due to the fact that the terrace can only be regarded as a temporary usable area.

Room layout: From 1-room apartment to old building to luxury loft

As clear a definition as the term “terrace” follows, as unclear is the room layout, which goes hand in hand with the terrace apartment. There is no typical scheme here. A terrace apartment is rather an addition to the previously known apartment types. In summary, it can be said that any type of apartment can be a terrace apartment. Accordingly, the room layout varies from property to property. On average, the apartment size in Germany is between 30 and 150 m², whereby the number of rooms usually varies between one and five rooms. Below are a few examples to give you an idea of how a terrace apartment can be divided up in terms of space:

• 1 room apartment with terrace
• 3 room old building apartment
• Terrace and loft apartment

Advantages & disadvantages of a terrace apartment: fresh air vs. hidden costs

At the sound of the word terrace apartment often only the word terrace is heard. Images of boisterous barbecues with friends, cosy dinner evenings and the relaxed summer evening with book and wine in hand spread before our inner eye. However, we mustn’t forget the essentials – the home. With as many advantages a terrace apartment comes with, there is also its counterpart – the disadvantages. Following you will find a list of those two, to be able to make a good judgment!

Advantages: improved quality of life, additional floor space and co.

• Outdoor area directly accessible
• Fresh air / nature
• Improved level of quality of life
• Additional usable space outdoors
• Popular usable space for recreational activities

Disadvantages: unsightly view, hidden costs and co.

• Unpleasant view
• Hidden costs (terrace area is partially included in the floor area)
• Increased potential for conflict with neighbours
• Privacy screens, unsightly cladding, etc.
• Facilitated burglary in the case of a ground floor apartment

Terrace apartment: for whom it is suitable?

The definition “terrace apartment” says nothing about the apartment itself. Only the possession of a terrace is thereby secured. Apart from this fact, a terrace apartment can range from a 1-room student apartment, to a popular apartment in an old building, to a luxurious loft. Accordingly, a terrace apartment can suit different tenants. Here is a brief overview of which model is best suited for whom!

Families: Terrace as a nature oasis

The terrace apartment can enjoy a steadily growing popularity. Especially in big cities, where hectic, stress and exhaust fumes are part of everyday life, people like to have a retreat in the form of a terrace. Especially small families rent or buy this type of property more and more often. A terrace offers a better quality of life, fresh air, a usually beautiful view and a touch of nature feeling. Perfect living conditions for children and parents in the middle of a big city!

Singles & Students: Terrace as a refuge

Especially among students and singles, the 1-room apartment is a sought-after property. The classic 1-room apartment consists of a living room or bedroom, a bathroom and a kitchen. The value and popularity of the property increases significantly with an included terrace. Fresh air, a retreat from the stress of exams and a possible beautiful view can motivate anew and be an aid to concentration.

Pensioners & seniors: barrier-free, fresh air and a view

A terrace apartment on the ground floor, which can be accessed barrier-free, has established itself as one of the most attractive properties for sale among pensioners and senior citizens. Steps and staircases do not have to be overcome thanks to the ground floor location. An outdoor usable space improves quality of life, invites relaxation and enjoyment, and can function as a gathering place for families and friends. Retirees and seniors often find a patio home the perfect place to enjoy their retirement! Did you know that loft apartments are also ideal for seniors? They are usually single-story and therefore barrier-free.

Buying: What you should consider before buying a terrace apartment

First of all, you have to decide whether you want to buy a modern apartment without renovation needs or an apartment in need of renovation. Then you have to decide whether you want to rent out the property as an investment or use it as your own home. Below we give you some tips to make your decision easier!

Modern new-build terrace apartment or terrace apartment in need of renovation: advantages & disadvantages

The great advantage of a terrace apartment in need of renovation is the relatively low price and the freedom of design. The disadvantage is that you have to add further renovation costs and renovation time to the purchase price. But you can bring your personal taste into your property. Windows, floors and doors can be built in your style and the redesigned room layout can create a new ambience. Furthermore, the laying of pipes and electrical cables is much easier in the course of a renovation.

If you decide on the counterpart of the terrace apartment in need of renovation, the modern terrace apartment, then you must expect a higher purchase price. These terrace apartments are already ready for occupancy and inspire with a positive, energetic balance. There is also room for your individual ideas in the new construction type, but in a more limited variant compared to the terrace apartment in need of renovation.

Terrace apartment: capital investment or home of one’s own

Once you’ve decided on the type of patio home, the second decision is coming up: how to use it! How will your future property be used? Do you want to rent it out on the open housing market and use it as an investment, or move into the four-wall investment yourself?

• Real estate as an investment

Checklist: What to consider when buying a terrace apartment

Before buying an apartment – whether a terrace apartment or any other type of apartment – there are a few things to consider. We have summarised these in a checklist for you here, so that you are best prepared when buying your condominium.

• Value of the land (mostly in € per square meter)
• Size of the apartment
• Condition of the apartment (in need of renovation, renovated, etc.)
• Age of technical installations (heating, water and electricity lines)
• Location of the terrace apartment (infrastructure, shops, schools, etc.)
• Income value (for rented apartment)
• “Risk of loss of rent” must be taken into account!

Rent: What you should consider before renting a patio apartment

Renting an apartment may come with less financial pressure, but not with less responsibility. Starting with the search for the perfect terrace apartment, the rental contract and the tenancy law, it is important to know and comply with any obligations and rights as a tenant. The following gives you an overview:

Viewing appointment, estate agent and co. for a successful rental agreement

Particular caution must be exercised when looking at private advertisements for apartments. Attractive price offers often tempt you and make you quickly overlook the small print in the rental contract. So that you are not surprised by any unwanted costs, we advise you to let an estate agent assist you in your property search. With the help of an agent, you will have access to a large selection of rental apartments of different sizes and price ranges.

• Rent apartment

Tenancy law: Which apartments are subject to this law?

Many residential tenants assume that all properties are subject to the Tenancy Act (MRG). However, they are wrong. There are numerous exceptions which must be taken into account. Accordingly, it should be a top priority to clarify this before signing the lease. The Landlord and Tenant Act regulates matters relating to the rules on notice periods, fixed terms, deposits, death and similar scenarios. In the case of your future apartment, the MRG may be fully applicable, partially applicable or not applicable.

Tip: Find out how these matters are regulated before you sign the lease.

Checklist: What to consider when renting a terrace apartment

Especially as a tenant, you should always exercise caution and thoroughly check the rental agreement and the property before moving in. To help you do this, we’ve put together a checklist for you here, in which you can tick off individual factors and see at a glance what you should look out for when renting a terrace apartment.

• Calculate space requirements
• Room layout (how many bedrooms, bathrooms, etc.),
• Special highlights (terrace, balcony etc.)
• Furnished or unfurnished
• Set the budget
• Engage a broker
• Calculate deposit
• Arrange bureaucratic matters (inform banks, insurances etc.)
• Report new residential address to the municipal office (within two weeks)
• Important things to note! ( Heating costs, insulation, rental period, rental contract, etc.).

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

Bungalow: What do you mean by this? Features & Definition

A bungalow is above all practical and modern. Especially with young families, this type of house is very popular, because you can find all the rooms on one floor and this is a great advantage with children. In addition, a bungalow is extremely durable. You can move in as a young adult and stay in this house all your life. As a pensioner, the absence of stairs and the single storey are a great advantage. Choosing the right house is not easy. You invest a lot of money in the construction or purchase and it is a decision for life.

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 country house to terraced house!

Special feature of a bungalow: large, open and inviting

The most important feature of a bungalow will probably be the single-storey. All living spaces are located on one floor and, accordingly, the plot is large. The house is detached and usually has a flat roof. In the meantime, however, you can also find a different roof shape, especially in newly built houses. Mostly the bungalow has a developed cellar and attic, which are used however mostly exclusively as storage space. Inside a bungalow, you will find a large, open living space, floor-to-ceiling windows and large doors. The aim of this design is to make the living area as bright and open as possible.

Room layout: Everything on one floor

Due to the fact that the living room and bedroom are on one floor, there are not many possibilities to arrange the rooms. Usually you find the living room and the kitchen on one side of the house and the private rooms on the other side. Most of the time, you can see the classic distribution of rooms as soon as you enter the bungalow. One comes into an open living room with adjoining kitchen and the living room. In many cases, there is a hallway on the other side, which leads to the bedrooms and main bathroom. Of course, when you build a bungalow, you have the option of splitting your house up to suit your needs. However, this is the standard.

Advantages & disadvantages of a bungalow: Garden, no stairs & more

Before you decide to buy or build a house, you should always consider the advantages and disadvantages of this type of housing in advance. Especially the financial question plays an important role. You have to decide for yourself and maybe also for your family if you fit into a bungalow and if you agree with the disadvantages of this property. We have summarized the most important facts for you.

Tip. Are you interested in buying a house? Here you can find more about financial planning, estate agents, loans and additional costs!

Advantages: no steps, lots of light and large garden

One of the greatest advantages of a bungalow is the absence of steps and the associated accessibility. Especially for small children and seniors this is a great advantage, as dangers are minimized. The large window fronts bring a lot of light into the large living space and since the garden usually goes around the house, one has with many bungalows the possibility of entering this from each room. It is not uncommon to have a second terrace attached to one of the rooms. This is a great advantage especially for older children. Finally, the individual room layout plays an important role. Since there are no load-bearing walls in a bungalow, the rooms in a solid or prefabricated house can be designed individually.

• No steps and barrier free
• Large window fronts
• Large garden and access possible from all rooms
• Individual room distribution

Disadvantages: large property with corresponding costs & prices

Especially the comparatively high cost factor plays a big role with a bungalow. Since you cannot build in height with this type of house, but only in width, you need a larger plot of land than with other building types. You will learn more about this in the course of this article. In addition, you need more square meters because of the hallway, which must lead to all rooms. In addition, due to the large roof, more insulation is needed and especially with older bungalows, the thermal insulation is usually not sufficient. You should also note that the many window fronts, the entry opportunities for burglars are greater.

• Property larger and more expensive
• More sqm through corridor
• More about insulate (roof)
• Older bungalows mostly poor thermal insulation
• More entry points for burglars

Land: selection and characteristics of the right plot

Especially with a bungalow you should consider a few things when choosing the right plot. You should not disregard the length and width of the building for this type of construction, because the following applies: living space is not the same as the area of the plot. We recommend that you seek professional assistance in your search. Especially when it comes to the condition and history of the land, you should not forget aspects such as building ground investigations or contaminated sites, because these could lead to high costs later on. We have summarized the most important key points for you and written them down compactly.

You want to learn more about the topic of land? Here you will find an article with many useful tips!

What size is needed for the property?

There is much more to a plot of land than just the residential building. One should plan already with this that one cannot build in the height, but exclusively in the width. Nevertheless, some things should not be ignored. Green spaces, storage areas, a garage or a driveway usually take up more space than the actual building. These things combined with the residence take up quite a bit of space and you should factor that into your budget planning. It is also the reason why the land prices for a bungalow are comparatively high.

Checklist: Choosing the perfect plot of land

Before you buy your chosen plot, you should first check the development plan. Check whether the plot is already developed, i.e. whether it is connected to the public road network as well as to the utilities (sewage, electricity, water, possibly gas). If this is not the case, you may still have to pay very high sums.

Then you should check possible rights of way and the mortgages in the land register. Does someone else have permission to enter your property without your consent in order to get to something? And how is the mortgage fixed with the credit institution? These are all things that are recorded in the land register and which you should check before buying.

If not yet available, you should have a ground investigation carried out. Especially if you plan to build a basement, you must check in advance how high the groundwater is and whether the construction is actually possible.

Last but not least, don’t ignore the contaminated sites before you sign the purchase contract. It is possible that oil, scrap metal or chemicals could be found during construction. We recommend that you read up on the history of the property. Talk to previous owners or look at old maps. Any signs of contamination should be ruled out before buying.

Here is a brief summary of the checklist:

• Development plan
• Land Register
• Soil investigation
• Legacy

Your surroundings: location is everything!

One of the most important factors is, of course, location. No matter if you want to build or buy. Your bungalow should have a good environment. What is the infrastructure like? Where is the nearest school or how far is it to my work? Do I like the surroundings? These are all aspects you should consider before buying. Talk to neighbors and scout out the location in advance. It is possible that this house will be for your whole life, so you should feel comfortable.

Bungalow as a prefabricated house: Is that possible? Criteria & Planning

A prefabricated house offers a number of advantages during construction. Among other things, it is faster, you have less personal effort and in most cases it costs less money. Many providers also have bungalows in their repertoire and some specialize in single-storey houses. One of the biggest perks here are the model homes. There are small towns with houses which you can visit. You have the opportunity to see your house in advance from the outside and inside and make changes. We show you here the most important steps how you can build your bungalow as a prefabricated house.

Correct and considered planning

First of all, you should start planning your future home. Go to a model city or look for inspiration on the internet. Building a house is a big step and you should plan everything carefully. How big should the house be? How many rooms do I need? What kind of construction do I prefer and will I still like it in 10,20,30 years? These are all questions that you should answer for yourself before building.

Find the perfect provider

Once you’ve answered all your questions, you can start looking for the right contractor. Not everyone will offer your dream home and in most cases something will have to be changed on the model homes. However, you have a big advantage if you choose a bungalow. Since you do not have to pay attention to any load-bearing walls in this type of house, you have the possibility to change the room design individually. We recommend you to look at many show houses and in case of need to look for a new provider.

Perfection down to the last detail: floors, bathroom & co.

The floor plan and the room layout are now fixed and you can take care of the details in your house. Which floors would you like, how should the walls be plastered or what should your bathroom look like? Different suppliers have different designs and you can ask them for advice. Plan down to the smallest detail so that you are satisfied with your new home.

Tips & ways to finance your bungalow

Building a house is always a big investment, especially in your own future. On the one hand it is a capital investment, on the other hand it is a great advantage to be able to live rent-free in old age. You’ll be independent in this regard and won’t have to worry about the issue. Nevertheless, you have to be able to finance the construction of a bungalow first, which is why we have summarized a few useful tips here.

Price of a bungalow: The location makes the difference

A bungalow is usually more expensive due to the large plot of land. The price of construction can often be in the mid six figures, but this is influenced by a number of factors. Besides the size of the house and the plot, a significant factor is the location. Should the bungalow be built in a rural area, the price is usually lower. If you want to build near the city centre, you have the advantage of a good infrastructure, but this also affects the price. We recommend that you get different offers and set your personal priorities, especially for the location.

Financing: Loans, Equity & Co.

To build a house, you always have to take out a loan, because building solely with your own capital is hardly possible. The requirements to get a loan include a good credit rating and a secure income. The credit institution wants to ensure that the money can be paid back regularly. Furthermore, one should raise 20%-30% of the costs from the equity. Possibly one has also the chance on national promotions for the building or purchase of a bungalow. Especially if you have a large family and want to build energy efficient. However, we always recommend that you look at several offers and make sure you have solid financing.

If you want to learn more about real estate loans, you will find many useful tips about loans, equity, interest rates & Co.