Usable space, living space and floor space: what is the difference?

Let’s start very simply. You will encounter these values in exposés, in advertisements, in every real estate search. That’s why it’s important to know the difference.

3 Surfaces you will often encounter:

1. Footprint
2. Useful area
3. Living space

The order is chosen specially. Because as you can see here, you come from the 1) floor space to the 2) usable space to the final 3) living space.

Tip. At the end of the article you will also find extra infographics, for clarification

Since there is still a simple “formula” for calculation on the Internet, here in quite simply explained.

Simply expressed as a “formula”:

• Floor area = usable area + circulation area (such as staircase) + functional area (such as boiler room)
• Usable area = Usable area (living area – basement – attic – …)
• Living space = living space (living room + bedroom + …)

Calculate step by step

Let’s look at the process again step by step:

Footprint: Step 1 + Definition

That is, the 1) floor area includes the entire usable area, as well as corridors and staircases (circulation area), and garbage or boiler room (functional area).

This includes all floor areas:

• Living space
• Attic, basement, garages and balconies
• Staircase, corridors, … (so-called traffic area)
• Garbage room, boiler room, … (so-called functional area)

This does not include:

• Plot

Calculate:

Floor area = usable area + circulation area (such as staircase) + functional area (such as boiler room)

Infographic:

Example: All built-up areas, covered areas and upper floors.

Usable area: Step 2 + Definition

After the floor area, consider the 2) usable area, that is, what can really be used in the house or apartment building (for condominiums).

These include, for example:

• Attic
• Basement
• Garages
• Storage rooms (outside the living space)
• Balconies

This no longer includes:

• Staircase, corridors, … (so-called traffic area)
• Garbage room, boiler room, … (so-called functional area)

Calculate:

Usable area = Usable area (living space, basement, attic, …)

Infographic:

Example: Staircase is part of the usable space.

Living space: step 3 + definition

Only then you come to the 3) living space. The living space then indicates the actual habitable space of the property.

Typically only includes:

• Living rooms (bedroom, kitchen, bathroom, living room, etc.)
• Balconies, loggias, terraces and roof gardens are counted at 25%, at most at 50% (§4 WoFlV)

Calculate:

Living space = living space (living room + bedroom + …)

Now you know the difference.

Infographic:

Example: Living room of a condominium.

Summary: Technical terms as infographics

Once again quickly summarized, the areas, simplified summary with infographic.

1. Total area (use + traffic + function)
   1. Traffic area (staircase, corridors in the house)
   2. Functional area (boiler room, garbage room, etc.)
2. Usable area (everything except traffic area / functional area)
3. Living space (usable space that is not occupied, example: cellar)

Total area / floor space in the house

Use + traffic + function give the total area.

Usable area in the house

Everything except traffic area / functional area results in the usable area.

Living space in the house

Usable space that is not occupied, example: basement, is called living space.

Prepare purchase contract: Important data, attachments & Co.

To ensure that your purchase contract is ready for notarization, you need to collect all important data, documents and commitments in advance. Let’s go through the most important points here chronologically.

Master data: Buyer and seller

At the beginning of the contract, the master data of the buyer and seller must be listed.

The master data includes:

• Name
• Address
• Date of birth

Master data: House, apartment & multifamily

The same applies to the property. The master data of your property includes the exact address of the property and, in the case of condominiums, the residential unit. The location and the land register sheet number must also be listed here.

Summarized here:

• Address of the property
• Housing unit, if applicable
• Location
• Land register sheet number

Purchase price and payment term including additional costs

The final purchase price is then displayed here. Important: This is not just the purchase price of the property itself, but the final price including ancillary purchase costs, such as notary, broker, land registry entry, etc. The payment term should also be recorded here. The payment term should also be recorded here.

Reading tip: Calculating the purchase price including incidental purchase costs

• Purchase price
• Payment term

Tenant data and list: Appendix

Important for rented properties: The tenant list and data. These are attached as an appendix to the purchase agreement. Finally, all information regarding the tenancy and the respective deposit must be set out. Rent arrears and house money arrears must also be listed here. If there are no arrears, this must be confirmed.

• Tenant data / Tenant list
• Current status of tenancies
• Deposits paid by tenants
• Confirmation: No rent arrears
• Confirmation: No house money arrears

Commitments made by the seller in the purchase agreement

Also important: All promises made by the seller must be included in the purchase agreement. If, for example, renovation or refurbishment work still has to be carried out, this should be documented here. This prevents misunderstandings later on.

Land charge documents from your bank

Finally, you will need the land charge documents from your financing bank. If you do not yet have them for your appointment with the notary, then include the power of attorney for the land charge appointment in the purchase contract instead.

Economic transition: billing and costs

If ownership is transferred to the buyer, this also entails an economic transfer. The economic transfer involves both the settlement of tenants’ accounts and contributions from residents. Important: If you buy the property before the middle of the year, the seller must take care of the settlement. If you buy the property in the second half of the year, you have to take care of it.

You will need the following additional documents for the economic transition:

• Documents for the settlement of tenants
• Receivables due to contributions from local residents
• Assignment of claims against craftsmen

Checklist: How to draw up the purchase contract

So here again summarized all the important data and attachments for the purchase contract:

1. Buyer & Seller Master Data
2. Master data of the property
3. Purchase price and payment term
4. Tenant data and list
5. Commitments from the seller side
6. Land charge documents
7. Documents for the settlement of tenants
8. Receivables due to contributions from local residents
9. Assignment of claims against craftsmen

You want to buy an apartment and still have some questions? Then you will learn everything from A-Z here: owner-occupancy or renting, financing a condominium, apartment search, real estate portals, brokers, valuation, purchase prices, negotiations and taxes. Knowledge and experience from experts, in one guide.

✓ A guidebook
✓ All facts
✓ Insider tips
✓ Purchase checklists

Learn step-by-step the home buying process and lots of insider tips!

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Equity investment in the purchase of real estate

Whether for personal use or capital investment, equity capital is required for every real estate purchase. Especially when buying your first property, the amount of equity you need to contribute is important. If you are buying a property for your own use, you should contribute as much equity as possible. If you are investing in a property as a capital investment, less is more.

As a basic rule:

• Self-interest = As much equity as possible
• Capital investment = As little equity as possible

Why is that?

Equity as a safety mechanism

In order for the bank to give you a loan for your property, it needs a certain security to get this money back in full later. That is why your creditworthiness is checked in advance. The more liquid your finances are, the less equity is necessary. However, if your expenses outweigh your income, you will need more equity. Once you have received your loan, you pay it back monthly through repayments.

The better your credit rating, the less equity you have

Important: As an owner-occupant, you have to pay back the interest on your loan yourself. Investors, on the other hand, can deduct them from their taxes.

Self-interest: This is how much equity you need

So as an owner-occupier, you need to put in as much equity as possible. In addition, the higher the equity, the lower the interest burden. Because the more equity you bring in, the less risk there is for the financing bank and the lower the interest rates are calculated.

As a general rule: 20% equity for owner-occupiers

Monthly Costs & Income

So how much should you earn each month? Our tip: The monthly cost of your loan should not exceed 40% of your net income.

Here is a calculation example:

• Income (net): 3,000 euros
• 40% = 1.300 Euro

So the monthly repayment including interest should not exceed the 1,300 euros.

Capital investment: This is how little equity you need

While you need as much equity capital as possible for owner-occupation, as an investor you enjoy the advantage of having to contribute far less equity capital. In addition, you can deduct the interest from your taxes. Ideally, even the tenant indirectly pays your interest. As a buyer of a property as an investment, your equity covers only 10-15% of the costs.

These include:

• Incidental purchase costs
• Real estate transfer tax
• Notary fees
• Court costs
• Brokerage costs

Rolling equity: Fast investments

Our pro tip: Make use of your rolling equity. But how does it work? It’s simple: You buy a property and contribute equity. Now this is paid out again through redemption and you can use it directly for your next investment.

Conclusion: This is how much equity you need!

So here is the rule of thumb once again:

• Self-interest = As much equity as possible
• Capital investment = As little equity as possible

In the case of personal use, your equity serves as security for the bank that it will definitely get your money back sooner or later. In principle, the equity you put in should not exceed 40% of your net salary. As an investor, on the other hand, you only need to contribute 10 to 15 percent as equity. The interest is to be borne by the tenant and with the help of rolling equity, you can invest directly in the next property.

You can find more about equity and real estate financing on my new project for real estate buyers (Immobilien-Erfahrung.de):

• Equity (external)