Living comfort and a prestigious effect

A villa means exclusive living comfort and a representative effect to the outside, a special challenge for real estate agents, or luxury agents. In addition, a villa is interesting as an investment property. The term villa originates from Roman times and means manor house. Today, not every villa is also a luxury object. Sometimes country houses located in urban centers are also called villas. In any case, villas are distinguished by their size, by a characteristic room layout, as well as by the land areas surrounding them.

In any case, there is a need for villas in today’s real estate market. Prices for these properties have risen sharply in recent years. The most sought-after villa locations are located in the catchment area of large cities.

Buy a villa? Our most exclusive properties

Our most exclusive properties you will actually not find online in our real estate portal. Celebrities, industrialists, sellers from business and media are looking for discretion and therefore rely on real estate experts with an internal circle of buyers and filtered communication channels. Are you looking for a villa in Germany, Europe or the USA? We have first class properties that you will not find anywhere.

• Off Market Properties
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Price development of luxury villas: Low interest rate phase

Since villas are highly sought after, especially as investment properties, and many investors are investing in real estate due to the period of economic recovery and low interest rate policy, the prices of these properties have also increased enormously. Over the long term, however, this price trend is by no means exceptional. Since 1975, real estate prices have risen only moderately. Towards the end of the last century, prices fell somewhat, but since the economic upswing they have been on the rise again.

Villa as a purchase object: Invest, instead of “only” live

In which real estate to invest? From an investor’s point of view, the villa has a special significance. It serves primarily as an investment object.

Secondarily follows the own use as a residential property and in many cases the new owner rents the villa. In vacation regions these objects are often rented out as vacation homes. This means that income can also be generated from the purchase of a villa. Indeed, the maintenance of these properties is also associated with high costs.

Checklist: Construction, extras and security

Basically, several components play a role in the purchase of a villa. These include, among others and very roughly simplified:

• Location of the property
• Property
• Living space
• Main house, if necessary adjoining houses
• Height of the rooms
• Furnishings and extras
• Security and accessibility

Location: the most expensive neighborhoods

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Many villas or country houses are located in the periphery. Whether in Berlin, such as Grunewald or in Los Angeles Beverly Hills. There, therefore, a high degree of mobility is necessary for residents. Some villa colonies, on the other hand, which are mainly found in large cities such as Paris are very centrally located.

The upscale residential environment, where most villas are located, is the decisive factor for a higher purchase price. However, the plot on which the property is located is also crucial. The property serves as an individual leisure oasis. It is private and therefore does not have to be shared with anyone.

Luxury you have to be able to afford

However, the disadvantage of this is the high cost of maintaining the garden area. Often, a separate gardener must be appointed. A villa is also characterized by its spacious room layout. These rooms can be adapted to individual needs. Here too, however, it must be remembered that the maintenance and cleaning of these rooms involves a lot of effort. Most villas are equipped with relatively high rooms. They convey a feeling of individual freedom. Their flood of light gives a feeling of well-being. However, the disadvantage of this is the high heating costs

Tip: If you come at this point already in the calculation, buy rather a number smaller! Here you can find my guide: Buy a house.

A villa is great for customizing. If several people occupy the property, so everyone has his own retreat there.

Villa as a rental property: Rent instead of buy?

If you want to buy a villa, you can consider renting out the property. This is an additional income opportunity that justifies the investment costs, at least in the medium term. However, there are tax issues to consider here.

Rental agreements offer tenants certain freedoms with regard to the interior design and the layout of the outdoor facilities. In the case of vacation villas, individual use is particularly interesting for vacationers. These villas are mainly located on the North Sea and the Baltic Sea. Also islands like Sylt or Helgoland offer villas as vacation domiciles. Many investors use the opportunity to buy a villa in such locations and rent it to tourists. When buying a villa, it should be noted that the investment must be planned very carefully due to its size.

• Reading tip: Renting from the apartment house

First, you should in any case assess whether an object offered for sale is really a luxury property or a villa. The prices for these properties are significantly higher than for normal objects. Whether it is a luxury property, describe the following criteria:

• The exclusive location
• A generous equipment
• The presence of special details

When is a villa a villa? Assessment

An exclusive location is particularly when the property is located in an upscale residential environment or in a special area. This includes islands, properties with sea views or properties in central locations in large cities.

Well-equipped villas also have their own pool area, a large terrace and a well-kept garden. Fitness rooms or a covered swimming pool can also be part of the luxury equipment. Special details are, for example, the provision of house staff or a gated community. This is a residential area with restricted access. However, this still has secondary importance in Germany.

Evaluation of the property: house or apartment building

• Valuing a house
• Valuate multifamily house

Costs: purchase price and incidental purchase costs

When selling a property, there are also costs that both the buyer and the seller have to pay.

Who pays which incidental purchase costs?

Explained in Quick:

1. Realtor – Under the new Real Estate Realtor Act, the cost of the broker is split 50/50 (buying from a private party); previously only buyers
2. Notary and land registry pays buyer
3. Property transfer tax pays buyer

This means that if you buy the property privately, under the new law – with reservations – the cost of the real estate agent would be divided in half. If, on the other hand, you buy through a company, such as a family office, the distribution is freely negotiable. In 98% of cases, however, the costs are borne by the buyer of the villa.

Checklist of ancillary costs: expert opinion to notary

These include, first and foremost:

• Value appraisal
• Energy certificate
• Broker’s commission
• Property transfer tax
• Speculative tax
• Notary and land register

The energy certificate, the real estate acquisition tax, the speculation tax and the notary fees are mandatory. The value appraisal and the broker commission are optional if these services are commissioned.

Individual cost factors

Most other items depend on the price of the property and vary individually. A speculation tax is incurred if the property is resold within a certain time after purchase. The tax authorities then access the profit made.

Notary fees and land register

The notary fees in Germany amount to 1.5% to 2% of the notarized sales price. In most cases, only the buyer of the property bears the notary costs.

Who bears the costs?

As a rule, the buyer.

Property transfer tax of the federal states

The real estate transfer tax is divided between buyer and seller and amounts to between 3 % and 6.5% of the notarized services for land and building, depending on the federal state.

Who bears the costs?

As a rule, the buyer.

Energy certificate and landlord info

The Energy certificate is prescribed at $ 300 for a simple certificate and $ 500 for a detailed certificate.

Who bears the costs?

As a rule, the seller.

Tip. Here we have collected for you various basics for renting. What else is important, besides the energy certificate?

Broker commission and cost allocation

The brokerage commission varies by state and ranges from 5.95% to 7.14% of the agreed sales price. The bearer of these costs is either the buyer or the seller, depending on the constellation. In some cases, these costs are also divided proportionately.

Tip. The commission amount is negotiable.

Who bears the costs?

As a rule, the buyer.

Buyer Tips: Owner occupancy / rental

1. Buy a house
2. Buy a multi-family house

Own use: buy a house

Buying luxury real estate – How many luxury properties are sold each year in Germany? There are less than 400.The market is extremely exclusive. Good contacts, a long-standing network, discreet offers and inquiries. Welcome to the world of luxury real estate. We show you how many square meters you get for your money. In New York, Berlin, Hamburg, Tokyo and Dubai. Buy and sell in the most expensive cities in the world.

• Buy a villa for the family

Build or buy?! Apartment houses

Your idea has manifested and your dream of a house is becoming a reality. You’ve already looked at a few properties, compared prices and budgeted for your home purchase. Before you enter into closer negotiations with sellers or reserve a property, you should plan your home financing and determine your terms. The more professionally you proceed and the more concretely you plan, the less complicated the house purchase will be, from the idea to the financing to the notarization to the conclusion of the contract. Then everything is ready for the renting from multifamily house.

• Build or buy?! Apartment houses

Alternative: buy exclusive condominium

The decision to buy a condominium (ETW) is made by most buyers for two reasons. The buyer wants to use the apartment to live in it himself. Other buyers are looking for a financial investment that will provide a good profit in the medium or long term.

• Buy an exclusive apartment

First time selling a villa?

If you’re facing selling a villa for the very first time, you’re probably asking yourself the typical questions that come up in any house sale and a few more. Especially if you are looking to sell an inherited house or villa and accordingly have no prior experience in real estate, here’s a little insight into the process and the costs you will face as a seller.

When selling a property, there are also costs that both the buyer and the seller have to bear.

Tip. We get the optimum out for you as a seller

Here you can find our contact persons: Contact.

You as a seller know that renowned real estate agents, like ours, take over the entire sale and process from valuation to exposé to notary and purchase contract. The most asked questions refer therefore, at the beginning, almost always to the cost factor with the mansion sales. Let us therefore start with this question:

Who pays which ancillary purchase costs?

Explained in Quick:

1. Real estate agent – Under the new estate agent law, estate agent costs are split 50:50 (buying from private); previously only buyers
2. Notary and land registry pays buyer
3. Property transfer tax pays buyer

Checklist sale: cost factors

These include, first and foremost:

• Value appraisal
• Energy certificate
• Realtor’s commission
• Property transfer tax
• Speculative tax
• Notary and land register

The energy certificate, land transfer tax, speculation tax and notary fees are mandatory. The value appraisal and the realtor’s commission are optional if these services are commissioned. Most of the other items depend on the price of the property and vary individually. A speculation tax is incurred if the property is resold within a certain period of time after purchase. The tax authorities then access the profit made.

Notary fees and land register

The notary fees in Germany amount to 1.5% to 2% of the notarized sales price. In most cases, only the buyer of the property bears the notary costs.

The notary fees and land registry are usually paid by the buyer.

Property transfer tax when buying a villa

The land transfer tax is divided between buyer and seller and amounts to between 3.5% and 6.5% of the notarized services for land and building, depending on the state.

The notary fees and land register is usually paid by the buyer.

Energy certificate for all properties

The energy certificate is prescribed with $ 300 for a simple certificate and with $ 500 for a detailed certificate.

The cost of the current energy certificate is usually borne by the seller.

Realtor costs

The realtor commission varies depending on the state and is between 2 % and 7 % of the agreed sales price. The bearer of these costs is either the buyer or the seller, depending on the constellation. In some cases, these costs are also divided proportionally. Tip. The commission amount is negotiable.

As a rule, the buyer bears the realtor costs.

Properties with multiple owners

The situation becomes somewhat more difficult when a property has multiple owners.

Especially in the case of villas, this can be the case. If the property is sold, it must always be unanimous among the owners. If this is not the case, the owner who wants to sell the property must bring a partition action.

Action for partition is time-consuming and costly

Heirs: community of heirs and fractional community

Villas are often real estate that has been inherited. Therefore, it may happen that several heirs are registered in the land register. If this is the case, the owners are listed in accordance with Section 47 of the Land Register Code. Their shares are levied ideally. If several owners are registered, this is a community of heirs in accordance with §§ 741 ff of the German Civil Code.

In the case of a community of heirs, the situation is somewhat different. If an heir brings a partition action, the property is put up for auction and the respective heir receives only his share of the sale proceeds. In the purchase agreement, all shareholders on the seller’s side must be mentioned by name. The respective share ratios are also listed in the purchase agreement. This is particularly important for the sellers, because the proceeds of the sale will be divided among them on a pro rata basis after the sale.

For the buyer of the property, on the other hand, this circumstance plays no role. However, problems could arise during the notarization process. Especially if one co-owner is represented by another at the notary appointment. In this case, a written power of attorney is required in any case.

Inherited a villa? Read more on the subject here

• Property and inheritance

Divorce: sale after separation

If married couples are indicated in the land register, it is to be assumed that they can sell the property only jointly. This occurs primarily in the case of divorce. The legislator assumes that both spouses have tacitly concluded a joint ownership agreement when purchasing the property. This is regulated in Section 749 (II) of the German Civil Code.

If one spouse is registered as the sole owner, he or she can also sell the property alone. The non-registered spouse only has to agree if the property is the entire property of the marital community. (§ 1365 BGB).

Selling a villa after divorce? Read more about the specifics in the topic here:

• Property and divorce

Vendor Tips: Owner-occupier/landlord

Want to learn even more about selling real estate? Read more about houses and apartment buildings here, depending on what type your villa is, there are specifics to consider here as well.

1. Selling a house: Villa for one household
2. Multi-family house: villa for several parties

House for sale: Villa for one household

Single-family houses are characterized by the fact that they are inhabited only by one family, a couple or a person living alone. They have a garden, which is also owned by the owner. Not all single-family houses are inhabited by their owners. There is also a possibility to rent a family house with a garden. In almost all federal states, single-family houses enjoy great popularity as a form of housing. Accordingly, there is a great demand in the real estate market.

• Sell your house

Multi-family house: villa for several parties

If you should decide to sell your house privately, it means a lot of time investment. From the appraisal to the creation of the exposé, to customer approach and sales phase, months pass without market knowledge. In all areas, above all, the location counts, not only in the sale of apartment buildings.

• Sell your aparment house

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

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

What Percentage are Incidental Purchase Costs?

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

~ 20% of the purchase price

The 4 Biggest Additional Costs when Buying Real Estate

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

Fees: Notarization of the Purchase Contract by Notary

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

~ 1,5% of the purchase price

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

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

• Read more here: Notary and Purchase Agreement

Taxes: Real Estate Transfer Tax

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

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

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

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

Purchase price 100.000 Euro

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

3.5 – 6.5% of the purchase price

Commission: Brokers Calculate their Share

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

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

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

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

~ 3.48 % of the purchase price

Supplements: Credit Interest and Installment Surcharges

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

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

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

Additional, Hidden Costs

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

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

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

Assessor & Renovation – Potential Additional Costs

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

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

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

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

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

Conclusion: Calculate additional purchase costs

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

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

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

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