What is new? Climate, new construction and renovation

Climate policy has, of course, left a very big stamp in the agreement between the SPD, the Greens and the FDP. 177 pages of coalition agreement have now been agreed. A search for the term “climate” yields 198 hits. More than 40 pages deal with the changes for more climate protection. The big goal is climate neutrality.

For example, heating systems are to be operated with at least 65% renewable energies from 2025; regardless of whether it’s a single-family home, condominium or apartment building. Residential construction is to be massively promoted, from the current 306,000 apartments built each year to a total of 400,000 new apartments. An increase of 30.5% in residential construction. This in turn (and other tools such as the rent brake) is intended to “make housing affordable.

The most important facts at a glance: 2022 will see the…

Changes at a glance:

• New construction of 400,000 apartments / year, of which 100,000 public
• Own Ministry of Construction
• Property promotion
• Regional rent limit
• Construction industry and climate protection
• Solar panels on all roof surfaces
• Climate-neutral heat supply: Heating systems
• Charging stations (e-car) expansion

Source: Coalition agreement real estate – Immobilien-Erfahrung.de

New housing construction & building boom: +100,000 apartments annually

The new German government wants to promote a construction boom. To this end, 400,000 new homes are to be built each year, as initially described. Currently, just over 306,000 apartments are completed each year. Accordingly, the volume is to be increased by 30.5%.

Minister of Construction and Ministry of Construction

The Federal Real Estate Agency in particular is to take responsibility for this, with public investment for 100,000 apartments. But according to the coalition agreement, the new federal government wants even more, even creating its own construction ministry with its own construction minister.

Another major problem in Germany, which the German government intends to remedy, is the very long building permit procedures. These are to be simplified so that construction can / may take place more quickly, from new apartments to wind turbines.

New construction and construction ministry at a glance

The most important facts at a glance:

• Ministry of Construction and Minister of Construction
• Federal Real Estate Agency (BImA)
• Construction investments: + 30.5 % or ~94,000 apartments / year
• Building permit: Speed in construction

Rent brake: Regional limitation

One of the most important topics in the new coalition agreement is housing and construction. Rising rents in Germany’s inner cities dominate the headlines, whether online, on TV or in the newspapers. Especially in major cities like Berlin, Munich and Hamburg, affordable housing is becoming a real problem, especially for young families.

There are no signs of a change in the trend. Also your view of the rent price increase of the last years and decades does not let itself prophesy an easing. Even the European Central Bank is now demanding steps from Germany to counteract the general price increases in Germany, there is this morning on Deutschlandfunk.

Development of the rent price index for Germany

Development of the rent price index for Germany in the years from 1995 to 2020 (2015 = index 100):

You can find more statistics at Statista

As described, 400,000 apartments are to be built annually for this purpose, 100,000 of them publicly financed.

Facts about the regional rent brake

You’re probably already familiar with the rent brake from Berlin. The experiment failed, but the rent cap did not. According to the coalition agreement, there will be a regional rent cap, limited to a maximum of 3 years. The rents in this region may then rise by a maximum of 11%, previously it was 15%.

Rent control in the coalition agreement:

1. Rent limit for individual regions
2. Limited to maximum +11%
3. Limited to a maximum of 3 years / region

Promotion of ownership: Increase ownership rate

In general, ownership is to be promoted more strongly. We have already discussed the topic of owner-occupancy in detail, especially in relation to real estate as an investment (rental). Owner-occupation is the most expensive form of housing, but it is still a way of building up wealth for private individuals in the long term. Accordingly, more German citizens are to become homeowners. Primarily naturally in dwellings, finally the sealing of the land surfaces increases ever more. In Germany alone, five hectares of land are sealed every day, e.g. for parking lots, but also for new construction.

This is what the coalition agreement says:

“We want to enable more people in Germany to live in owner-occupied property”

46.5% Ownership rate in Germany

What is the situation regarding the home ownership rate in Germany?

• 2018 – 46,5%
• 2014 – 45,5%
• 2010 – 45,7%
• 2006 – 41,6%
• 2002 – 42,6%
• 1998 – 40,9%

Source: Federal Statistical Office

Solar system: use roof surfaces

Solar installations are again a big topic, for many years many subsidies are provided for it by the state. Now solar systems are to become mandatory for a large part of the construction industry.

Specifically, everything up to the coalition agreement:

“All suitable roof space to be used for solar energy in the future.”

The goals are very ambitious; by 2030, 90% of the electricity is to come from solar alone. Many areas are available for this, just think of single-story supermarkets with their flat roofs or even huge logistics centers.

“For new commercial buildings, this should be mandatory; for new residential buildings, it should become the norm.”

Currently, Germany needs a net amount of electricity produced of 220 gigawatts. Solar energy is expected to cover 200 gigawatts in the next few years.

Target: 200 gigawatts / year through electricity from the sun

Installation, whether single-family house or apartment building:

Climate-neutral heat supply: Heating systems

In the Building Energy Law (GEG), there will be the following changes: Heating systems installed after 2025 must be operated with 65% renewable energy. This will be a great challenge and at the current technical level, especially hybrid systems with solar thermal energy will have to be installed.

Tip. Read more about the “Future” here:

• Low energy house
• Solar energy for the home

In addition, there are a few more detailed changes, especially for conversions, extensions under lines.

Insulation, increasingly important in new construction:

Charging stations: Public expansion & in house

The switch to electromobility, which I have written about frequently here on the blog, will also be very interesting.

The headline is big:

15 million electric cars + 1 million charging stations

15 million electric cars will pose major challenges for the power grid. To supply all these cars with electricity, the German charging network is to be expanded to 1 million charging stations.

Of course, not all charging stations will be public; a large proportion will be installed primarily in houses and garages, carports and underground garages. Fast-charging stations are already being installed in more and more underground garages. According to the current state of technology, electric cars can be recharged in about 30 minutes.

The interesting thing is that in the future, electric cars could be part of the power grid. As decentralized electricity storage. If we increasingly go to solar energy, energy from wind power and hydropower, then energy is not always available in the same amount. We also can’t ramp up a power plant. The batteries of electric cars could be for decentralized storage for our cities in the future.

No tax increases: Top tax rate remains the same

Finally, something good, for all property owners who also rent, the top tax rate was not touched. Nor were there any other tax increases.

Understanding the development of construction interest rates

The current construction interest rates are around 0.9 to 1 percent effective, for a standard financing. A so-called standard financing means that the loan amount is 80 percent of the value of your property. Meanwhile, the fixed interest rate is 10 years.

Current: 0.9 to 1 % effective

How to use the interest rate barometer correctly?

The most important instrument for determining the development of construction interest rates is the interest rate barometer. We recommend that you always observe a longer period of time and thus obtain a concrete overview of the interest rate development. The chart shows you the months in which the mortgage was particularly favourable and the relationship between the specific interest rate and the term. Because not only the economically dependent construction interest rate development, but also the period of your personal debit interest commitment influence the interest rate of your construction financing.

Building finance calculator

If you use the construction financing calculator, you can find out what conditions you will receive for your construction financing by specifying your desired term and loan amount. To find out whether you can finance cheaper or more expensive than, for example, a year ago at the same time, the interest barometer offers you helpful and transparently presented information.

Many questions are asked during consultations, especially by customers who are building for the first time:

• What is the current construction interest rate?
• When will construction interest rates rise again?
• Can construction interest rates fall further?
• What are the current interest rates on loans?

Building interest rate development: view charts, understand charts

Surely, like most potential owners, you are primarily guided by the timing of your desire to purchase a home or condominium. Even if your feeling is that it is always the right time to buy real estate, you should consider the construction interest rate trend as an important indicator for favorable financing. If interest rates are at a low point, this circumstance can add up to a few thousand dollars on a construction loan. For this reason alone, you should not disregard the construction interest rate trend and also tend to assume that construction interest rates can rise at any time and make the loan more expensive in its entirety.

First of all, let’s take a look at the influencing factors that play a key role for you in the lending process.

Factors influencing construction interest rates

If you are looking to take out your home loan with your bank or high street bank, there are a few factors that will affect the interest rate. These include:

• Creditworthiness – Do you have the necessary equity capital?
• Employment – What is your employment status?
• Postcode of the property – Good or less attractive location?
• Use of the property – capital investment or owner occupation?

A look at the past of the construction interest rate development shows you how the financing interest rates have fallen year after year. A forecast for the future also shows you that the low interest rate will not remain permanently. It is quite noticeable that the construction interest rate development will follow a new trend in the coming years and will rise again over a longer period of time.

Building interest comparison: advantages & conditions

When comparing construction interest rates, most future owners think of the debit interest rate, which truly has an important influence on the overall conditions of a real estate financing. But a good construction loan is not primarily recognized by favorable debit interest. On top of that, compare the effective interest rate and the general conditions, as these factors have a decisive influence on your satisfaction with the financing. Experts support you with core competence and advise you in detail on all criteria that are important in the comparison of construction interest rates. With us, you will find the optimal construction interest rates without detours and can save several thousand euros through the comparison.

Advantages in terms and conditions through comparison of building interest rates

What is important in the comparison of building interest rates?

Before you make the construction interest rate comparison, you should inform yourself about the influential details.

Did you know that you can influence construction interest rates simply by changing the fixed-interest period? The shorter you finance, the more favourable the building interest rates become. It is therefore worthwhile to compare different financing models and terms and to find out which concept will enable you to fulfil your dream of owning your own home at a particularly favourable interest rate. When it comes to comparing the effective interest rate, the evaluation of the results is more complex.

Let us advise you and find out how you can use some tried and tested strategies to ensure the most favourable loan conditions for your construction financing. A good credit rating in combination with an optimised repayment concept has a positive effect on reducing the interest burden for real estate financing.

Use the online loan calculator to get an initial overview and see the basis of your financing options. Then check in detail with which repayment you will receive the best construction interest rates based on your own budget specifications. We will be happy to recommend different financing models based on the criteria that are important in your construction loan. With our comparison at Lukinski, we lay the foundation for your home and show you that you can finance according to your own requirements at the best construction interest rates.

Finance favourably, compare comprehensively

The total expenditure when buying a house or financing an apartment rises and falls with the construction interest rates. A construction interest comparison is free of charge and offers you an overview of the difference between the net construction loan amount and the conditions including construction interest in just a few minutes. At the current time, construction and mortgage rates are at an all-time low.

For you as a prospective buyer and financier, this results in a cost advantage that should not be underestimated. Pay attention to the interest rate comparison and note the key data of the offers that are interesting and relevant for you. We will be happy to provide you with condition offers for a comparison, in which you can compare different financing models, different terms and financing partners.

Financing models and building interest offers

Without a comparison, the construction financing section is very confusing. There are numerous options, financing models and different construction interest offers available based on your credit rating and the amount of equity invested.

Only if you find the best model for you with the lowest construction interest rates, you finance professionally and at the best price. By changing the fixed interest rate, you can have a concrete influence on the construction financing. Simply check in the online comparison how much money you can save by changing your actual repayment plan.

Give money away?

Without a construction interest rate comparison, you are giving away valuable potential and can almost certainly assume that your construction loan will be unnecessarily too expensive.

With a long-term commitment you make with a construction loan, the smallest compromises can put high additional costs of a few thousand euros on your agenda. This applies to all construction loans, regardless of whether you opt for an annuity loan, forward financing or a combination of a real estate loan and KfW construction financing. In general, you should know that not every construction loan is equally suitable for you.

Conditions of different lenders vary

The conditions of different lenders vary, which automatically makes a comparison the most important basis for your construction loan. You can use the online comparison free of charge and get a first impression of the conditions at which you can build your own home or finance an apartment, for example.

Then we recommend you to entrust a detailed comparison of construction interest and to determine your personal conditions.

Based on our many years of experience, we strongly advise potential homeowners not to consider a construction loan to be cheap without first making a comparison. Only if you get a broad overview and know your individual options in their entirety, you will really make the best decision and finance so favorably that your dream of home ownership no longer has to wait. Contact us for your construction interest rate comparison and benefit from Lukinski as a partner you can count on.

Interest rate forecast construction financing at a glance

Influence the development of the construction interest rate yourself! By choosing the right repayment period, calculating your equity capital and choosing the best financing option for you, you can finance your construction at any time at an unbeatably low interest rate.

Advice for construction financing and new construction

Good real estate agents and banks advise you on the construction financing chart and offer you core competence in interest rate forecasting, so that you can make an optimal decision and keep your construction financing costs favorable. They will be happy to explain to you in detail how you can influence the development of the building interest rate simply by changing the repayment rate and the term, through more equity capital or a tailor-made financing concept. A good advisor will get you into your own home or condominium and ensure that you invest at exactly the right time and create a foundation for your future through financing advantages.

Overview of state funding

• Financial support for modernisation or purchase of real estate
• Promotion of energy-saving technologies
• The amount of the subsidy is variable
• English – “state promotion

Back to the wiki: Real Estate

Photovoltaic system – the different variants of renewable energy generation

The system that is chosen by most is the so-called photovoltaic system that generates electricity with the help of solar energy. With such a system, the owners are independent of public grid providers and do not have to pay more for their own electricity. But also with the photovoltaic systems there are different variants, each of which has its advantages and disadvantages.

Feed-in system – earning money with your own electricity

The most commonly used variant of the photovoltaic system is the feed-in system. This produces electricity for the household and feeds the electricity that is not consumed into the public grid. As required by law, the house is connected to the public grid and feeds surplus electricity into it. For this, the Renewable Energy Sources Act (EEG) stipulates that the producer must be remunerated. The so-called feed-in tariff varies between 10 and 13 cents per kilowatt hour (kWh) depending on the nominal output of the system and is fixed for the next 20 years. To illustrate this: An average family consumes only about 30 % of the electricity generated. 70 % is fed into the public grid and remunerated. However, there is a trap here that private individuals often fall into, because selling electricity is a trade and as soon as a private individual does this, he becomes a freelancer and is self-employed. Taxes and lots of paperwork are just waiting for you. To avoid this, check out our guide on all things solar without the tax office! Through an electricity storage, the self-consumption can be increased up to 75% and the owner benefits twice from the electricity.

Advantages

• Reimbursement of sales tax on the purchase price of the plant
• Good price-performance ratio
• Feed-in tariff according to EEG as additional income

Disadvantages

• Registration of the plant as a trade
• Subject to the obligations of the EEG
• Increased bureaucracy

Such feed-in systems are particularly suitable for property owners who have a constant average electricity consumption and want to drastically reduce electricity costs. On the contrary, such a plant can not only reduce annual electricity costs, but also be used as a source of income.

Zero feed system – all the electricity for your own home

The second variant of the photovoltaic system is the so-called zero feed system. As the name suggests, no surplus electricity is fed into the public grid. In the best case, 100% of the electricity produced is consumed in one’s own household, so that nothing is fed into the public grid. In order to ensure this, the system must be precisely adapted to the individual needs of the owner and also have a suitable electricity storage system. The electricity production is additionally controlled by an inverter, so that the output of the system exactly matches the electricity consumed and no electricity is fed into the public grid. The owners of such a system thus forego the feed-in tariff under the Renewable Energy Sources Act (EEG), but at the same time they avoid all the obligations that the feed-in tariff entails. You do not have to register a business and you do not have to pay taxes for the electricity fed into the grid. Although the photovoltaic system is intended to generate 100% of the electricity required, the property is still connected to the public grid so that it can continue to draw normal electricity if the solar power is not enough.

Advantages

• No increased bureaucratic effort, such as business registration, etc.
• Greater independence
• No obligations under the EEG

Disadvantages

• No feed-in tariff
• No refund of sales tax

The zero-emission system is therefore particularly suitable for private individuals who have a high energy consumption. The installation of a suitable electricity storage unit is mandatory for such a system, so that the self-produced electricity can be used most effectively.

Photovoltaic island system – independent of the public power grid

The photovoltaic stand-alone system variant does without the connection to the public grid and assumes that the solar system can always supply the electricity storage system with energy. The household is therefore supplied with electricity solely from the solar modules and does not rely on electricity from the public grid in an emergency. The owner is therefore not dependent on electricity from the public grid at any time. Here we will first distinguish between two types.

Stand-alone system without mains connection

As the name suggests, this model is a system that is not connected to the public grid in any way. The house relies exclusively on energy from the photovoltaic system. The system was designed for such a case so that both solar modules and energy storage are so large that they can independently supply the entire house with electricity without resorting to another power source. The electricity in such a house is therefore produced and stored 100% by the photovoltaic system. However, this system is usually only installed when a connection to the public power grid would be too costly. This is particularly the case for remote houses, mountain huts or individual infrastructures.

Island system for backup power

Independence from public electricity can also be made possible for German homeowners. The installation of an island system for emergency power is the solution here. In the event of a failure of the power grid, the stand-alone system for emergency power can then intervene. It makes it possible for both feed-in and zero feed-in systems to become an island system in an emergency. In the event of a power failure of the public grid, this system switches to backup power within a few seconds and the house remains normally supplied with electricity. So, the household is not dependent on the public grid and does not have to worry about a power outage. Here it is ensured that there is always enough power available. During installation, the entire house is disconnected from the public grid and a backup power system is set up that can communicate with the storage system.

Advantages

• Function as a backup power system
• Maximum independence from the public power grid
• Protection against power failures

Disadvantages

• Significant additional costs
• Is rarely used
• There is hardly any economic benefit for the owners

Such an investment does not always make economic sense for the homeowner. So before you decide on this option, first check your average daily consumption, the appropriate size of the system and the design of the solar storage tank. With this, you can calculate whether an investment would be profitable for you or not. The independence that owners have with such technology from the public grid is undisputed and will change and influence the energy policy of Germany in the coming years.

Photovoltaic system in 8 simple steps

Step by step – There are numerous solar calculators on the Internet that can be used to determine the approximate size of the photovoltaic system. This should help customers to estimate how large the system must be and how high the costs will be. However, many of these calculators do not take important factors into account, which is why property owners only receive inaccurate information. With our eight steps, you can calculate the individual size of the photovoltaic system you need for your home yourself. We take all factors into account and you can get a detailed picture of your investment.

Step 1 – Energy consumption per year

The primary goal of a photovoltaic system is to produce the required energy for your household without having to access the public grid. The size of your individual photovoltaic system is therefore first and foremost related to your personal energy consumption. How much electrical energy do you consume per year? You can answer this question yourself with your last electricity bill.

So the first step is to calculate your average electricity consumption in kilowatt hours (kWh) over the last 5 years (j). How has the price per kilowatt hour and the average electricity consumption changed? When calculating, you should also take into account future purchases, such as a heat pump or an electric car, i.e. everything that also consumes electricity and influences your overall consumption.

Example:
Family A has an average energy consumption over the last five years of 5,000 kWh. The acquisition of a photovoltaic system should be able to cover the majority of this energy.

Formula:
Your personal electricity consumption per year (SV)=______ kWh / j

Step 2 – Energy production of the photovoltaic system

In order for the photovoltaic system to cover your own consumption, it should supply at least 25 percent more energy than you consume over the year. The 25 percent is an empirical value that people like to calculate with. Excess energy can be ‘stored′ in a storage tank or you can feed it into the public grid. The self-consumption covered by solar energy is the part that you later no longer have to buy from energy companies, but simply produce yourself. The optimal amount of electricity production for your photovoltaic system is therefore 125 %.

Example:
Family A, which has an average energy consumption of 5,000 kWh, now calculates further with this value. Their optimal electricity production quantity is therefore 125 % x 5000 kWh = 6250 kWh

Formula:
Optimal amount of electricity produced by the photovoltaic system = 125 % x SV

Step 3 – the regional energy yield

Even if the sun does not shine 365 days a year in Germany, a photovoltaic system is still worthwhile. The prejudice that a photovoltaic system only pays off in southern countries can therefore be refuted, as global radiation averages 1,100 kilowatt hours per square metre (kWh/a) per year. The advanced technology also allows good cooling and self-cleaning of the systems, which reinforces their effectiveness.

The regional energy yield (RE) for your photovoltaic system is composed of the unit kilowatt hours per kilowatt peak and per year (kWh / (kWp x a)) and varies depending on the region. So that you can inform yourself about your region, we give here a small overview of the average kWh/m² for the individual federal states:

• Baden-Wuerttemberg: 1050-1175 kWh/m²
• Bavaria: 975-1175 kWh/m²
• Berlin / Brandenburg: 975-1050 kWh/m²
• Hesse: 975-1100 kWh/m²
• Mecklenburg-Western Pomerania: 1000-1050 kWh/m²
• Hamburg, Bremen, Lower Saxony: 950-1025 kWh/m²
• North Rhine-Westphalia: 950-1025 kWh/m²
• Rhineland-Palatinate: 975-1125 kWh/m²
• Saarland: 1050-1100 kWh/m²
• Saxony: 975-1100 kWh/m²
• Saxony-Anhalt: 975-1050 kWh/m²
• Schleswig-Holstein: 950-1025 kWh/m²
• Thuringia: 975-1050 kWh/m²

Example:
Family A lives in North Rhine-Westphalia. This federal state has an average regional energy yield of: RE = 950-1025 kWh/m².

Formula:
Your regional energy amount RE = ___________ kWh/(kWp x a)

Step 4 – the conditions of the roof

The conditions of the roof play a major role in photovoltaic systems. The roof orientation, roof pitch and shading should be taken into account when choosing your solar cells. However, the preconceived notion that only south-facing modules deliver economic yields has been disproved in recent years and it has been shown that east, west and even north-facing roofs can also deliver reasonable yields. Depending on the roof pitch and orientation according to the points of the compass, a deviation value is therefore produced. You can easily find out this composition of values for your region.

Example:
Family A has a roof that has a pitch of 30 degrees. In addition, it deviates by 40 degrees from the south. The deviation value for family A is therefore AW = 97.5 %.

Formula:
The deviation value of your property: AW= _______%

Step 5 – Avoid module shading

The location of the solar cells should be carefully considered. Shading can significantly reduce the performance of your system. This can already include general things such as the shadow of a tree, a neighbouring house, a chimney or an antenna. If such causes cast a shadow on the plant, the performance of all modules of a power string is reduced. However, pay attention to when the shadow hits your house. Since most energy is generated in the months between March and October, a shadow that hits the property only in winter is therefore less of a hindrance to performance than a shadow that hits the modules in the summer months. Depending on the type of shade, a 1-5 percent discount should be included in the calculation to account for lower power production.

Step 6 – Adjust regional energy yield

If your roof is not optimally located, so that the deviation value is not 100 percent, the deviation must be included in the regional energy yield. This is because a non-optimal roof reduces the yield somewhat.

Example:
Family A has a deviation value of 97.5 %, which must now be adjusted to the regional energy yield of North Rhine-Westphalia. Family A therefore calculates for their property: 97.5 % x 950 kWh/ (kWp x a) = 926.2 kWh/ (kWp x a)

Formula:
Personal regional energy yield (PE) = deviation value (AW) x regional energy yield (RE) = ______kWh/ (kWp x a)

Step 7 – the size of your individual photovoltaic system

With all the values you have found out, you can now determine the size of your individual photovoltaic system. For this we need the unit from step 2, i.e. your optimal electricity production quantity of the photovoltaic system and the calculated personal energy yield. If you have a larger roof area, the construction of a larger system can be considered. Planning a build? See our construction guide. Please refer to our guide on the subject of solar energy.

Example:
Family A now calculates the size that your photovoltaic system must have at least. You calculate for this: 6,250 (kWh/a) / 926 (kWh/(kWp x a)) = 6.74 kWp. Your system can therefore have a size of 6.74 kWp.

Formula:
Size of photovoltaic (PV) system = electricity production / personal energy yield [PE] = _________ kWp

Step 8 – the required roof area

The last step is to calculate the required roof area. Now that you know what the minimum size of the photovoltaic system must be to cover your energy consumption, you only need to find out how much roof area you need to install the system. A typical photovoltaic module measures 1.67 m x 1 m (= 1.67 m²) and thus has an output of 300 Wp. To now calculate the roof area, we need a factor of 7 m²/ kWp, where certain open spaces have already been taken into account.

Example:
Family A has now reached the last step of the calculation. So you calculate: 6.74 kWp x 7 (m²/ kWp) = 47.25 m². Family A therefore needs 47.25 m² of their roof surface to install a photovoltaic system to cover their energy consumption.

Formula:
The required roof area (DF) = size of the photovoltaic (PV) system x 7 (m²/ kWp)