Holiday home and apartment: additional costs, location & taxes

Modern property in the countryside or in holiday areas are often on offer. The perfect properties for those who want a quiet retreat. However, such an investment is by no means cheap and finding the right property is not easy. In addition, you should consider a few things before you decide to buy.

Prices of €200,000 to €300,000 are quite common for smaller properties of 40 to 50 square metres of living space.

If you want a luxury property, you have to pay a lot more. Depending on the area, prices naturally differ and properties vary. Whether abroad or at home, before you acquire a second residence, you should clarify important points.

Investing in real estate: France

Living and working abroad is a very memorable experience, professionally, personally, culturally and of course financially. In this free guide, you’ll get investment tips for all the major cities in Europe, America and Asia, from New York to London to Paris.

• Investing abroad: Real estate (external)

Incidental purchase costs: What do you have to pay?

When buying a holiday home, you have to expect similar ancillary costs as with a normal house purchase. Depending on the property, renovation costs may be added to the purchase price first and foremost, as most properties need a little new paint, possibly a new kitchen or bathroom.

Looking for inspiration? In the FIV Magazine you will find tips for living room, kitchen, bathroom & Co (external): Furnishing.

The furnishing of the house is also added to the new construction. Your holiday home also needs to be furnished, because you want to feel comfortable in your place to relax. Apart from these additional costs, there are also costs for the interest.

Financing a holiday home with a real estate loan

If you take out a loan to finance your holiday home, you will usually only get one with high interest rates for such a project. So compare different lenders and check where you are offered the best interest rates. Of course, you will also have to pay, for example, the land transfer tax or the notary.

Buying property abroad in Europe

• New York, LA, London & Co: Luxury Real Estate
• Foreign property France
• Foreign property Spain
• Foreign property Mallorca

Location and property prices

Depending on the location in which you are looking for a house, the real estate prices are cheaper or more expensive. So think carefully in advance about how much space you need in a holiday home and look explicitly only for houses that really meet your size requirements.

Houses that are too big will only make more work for you and drive up the price unnecessarily. Also consider where your holiday home should be located, because the location can also make a lot of difference to the price.

Example: Romantic holiday home by the sea, near Hamburg.

Winter garden and idyllic summer nights:

Taxes: Tourist tax holiday residence (second home tax)

Depending on the municipality in which your holiday home is located, the municipality may charge a so-called second home tax, which is usually around 10 percent of the annual rent.

Secondary residence tax approx. 10 % of the annual cold rent

Allotments with gazebo?

However, owners of allotment gardens with a gazebo are not affected by this regulation as long as the gazebo does not exceed a size of 24 square metres and the premises are not used for permanent living.

Real estate in holiday areas

For real estate in holiday areas, resort taxes are also due. Again, there is an exception for allotment gardens, these spa taxes are only required if a water and electricity connection is available and thus makes the gazebo a property.

Lease, right of termination and technical equipment

Who shies away from these costs, however, there are still other possibilities to get a holiday home. A property could be leased, but there is the risk that the homeowner insists on his right of termination and you can be terminated. The dream of a holiday home is then quickly over.

Of course, you can also build a holiday home yourself. Here, the costs for the land and a building permit are added. In addition, there is a building ban in some holiday areas, for example in flood protection areas. In addition, it must be noted that possible costs for water and electricity connections are added, which must be laid to the construction site.

Real estate transfer tax on the purchase of real estate

When you buy a holiday home, or more precisely a plot of land or part of a plot of land, you pay land transfer tax. The amount of the tax is determined by the individual federal states. As a rule, the real estate transfer tax ranges between 3.5 percent and 6.5 percent. You can find the current real estate transfer tax rate here, with example purchase prices of 1 – 5 million euros:

• Real estate transfer tax table

Holiday home abroad: special regulations & legal situation

Buying a holiday home abroad can quickly turn out to be more difficult than you think and you should be clear about the legal situation of the country before you make a decision. Abroad, some completely different rules than in Germany and blanket guidelines are not possible, because it varies from country to country. Depending on the situation of the country, there are different regulations that you must observe.

Mallorca: #1 for holiday homes in Germany

Exclusive luxury property for sale in Mallorca:

Small, green oasis with fireplace in the backyard.

Purchase contract: Written form & notary are obligatory

Probably the most important thing is that you never buy a property without a written and notarized purchase contract. With a purchase contract you are always on the right side and protected. In Spain, a verbal commitment is usually sufficient to achieve legally binding effects. In Turkey the transfer of ownership on a piece of paper is sufficient. And although other regulations are often customary abroad, you should still insist on the written contract.

Dedication: What does that mean?

In some countries, the use of the property as a holiday home requires a specific dedication. Check before you buy whether such a regulation has been included in the contract, so that you can use the property properly later. You should also check whether you, as a foreigner, can expect to own real estate in the desired country / area at all or whether you are not entitled to do so. Here, too, there are different regulations depending on the country.

Regulations on coastal protection, inheritance law and planning permission

When buying abroad, you should also pay attention to existing regulations on coastal protection, inheritance law or rights of way.

Many houses or apartment complexes have been built without planning permission or in coastal protection zones and can therefore be demolished at any time by a government order. Properties are also often of dubious construction quality or built illegally, which puts your protection at risk.

So when buying a property, ask to see all the necessary documents and insist on planning permission. A cadastre is also important to delineate what the property includes. In some countries, only rough indications have been made here and there is no legal certainty for you.

Europe: France, Italy, Turkey & Co.

Holiday home in Istanbul:

Exclusive furnishings in Kartepe.

Relaxing above the rooftops of the city.

Rent out a second home as a holiday home: Tips & Tricks

Many people buy a holiday home under the assumption that they will also rent it out if the property is not being used themselves. Not a bad idea, because a little extra income is actually always quite good. However, if you want to rent out your property, there are a few things you need to consider.

Good location generates interest

For example, location is very important.

Holidaymakers want central holiday apartments.

For example, close to the beach or just downtown. They usually want to see the place and not just stay in the apartment all day. An attractive location is therefore the key to successfuly rent out your property and also to be able to charge a good price for it. The better the location, the higher the price you can charge.

Attractive equipment

In addition, your property must have some equipment to be attractive for guests. Sufficient bedrooms, possibly a sofa bed to create more sleeping possibilities, a good kitchen with modern appliances and entertainment program, such as TV or Wi-Fi.

Your property should leave nothing to be desired and offer your guests everything they need on holiday. Bed linen, towels and a well-equipped kitchen are just as important as tips for great excursions and restaurants nearby and cleanliness on arrival. Special features such as a rooftop terrace or a pool will add tremendous value to your property.

Buy and rent

The real estate market is booming, everyone wants to get a piece of the pie. They also know that if you’re smart about it, you can get really rich with real estate investing. But how do you get started? How do you get there, buy your first apartment and rent it out? You can find out here, from real estate investor Alex Fischer:

• Buy and rent (external)

Viewing appointment: convince seller / broker

You have been looking for a new property for a long time. Berlin, Hamburg, Cologne or Munich, a house for the family because the apartment is simply too small for everyone, a new apartment because you want to move in with your partner or simply a move to a new city. When looking for an apartment, you always come to one point – the viewing appointment. For many an exciting appointment, because you can now see the property in real life, which you have only seen on pictures until then, but for others also a stressful appointment, where you meet other co-interested parties, the landlord or the agent.

• Do you need to bring documentation?
• What is your best course of action?
• How do you make the perfect first impression to actually get the property of your dreams?

In order to avoid making mistakes that in retrospect will be your undoing, there are a few things to keep in mind. From the important first impression at the viewing appointment, to the good organization of all documents. So that you don’t forget anything and can soon move into your dream property, here are the 11 most important tips.

• Viewing appointment

Buying a weekend home: Get out of the daily grind

Buying a weekend house – A weekend house can be used in a very diverse way. You can spend your free time and holidays there. In addition, it is possible to rent out the weekend house and thus generate additional income. Weekend houses are quite often on offer in Hesse and Rhineland-Palatinate. There are many beautiful regions in the federal states that are very popular with the people who live there.

Some weekend homes are located in popular holiday regions. Others are considered more of an insider tip and are hidden away on the edge of the mountains, near the Main River or in the middle of nature. If you want to buy a weekend house, you can choose whether you prefer nature, water or mountains. Decide on a location that you individually prefer. Weekend homes are not designed for residential purposes. They are for recreational purposes. For this reason, it is important that you feel comfortable in the area. If you are planning a rental, you should find out which locations are particularly popular. We will be happy to assist you in this and offer you weekend houses that exactly meet your individual requirements.

• Buy weekend house

Buy a farm: Country house in the green

Buying a farm – The decision to buy a farm is made by families as well as couples or singles in middle or older age, who want to change and appreciate the individual form of living in the midst of nature. We offer you farms in attractive rural locations.

Buying your own farm as a permanent residence or as a weekend home. You need to decide if you want to buy a property in need of renovation. These farms can often be purchased at a very reasonable price. Alternatively, there are properties that have already been refurbished by their previous owner and are in a modern and very good condition. These farms are usually ready for immediate occupation. However, you will have to expect a higher purchase price. This is especially true if the farm is in a very central location with a good infrastructure.

• Buy farm

Buying property abroad: Tips

• New York, LA, London & Co: Luxury Real Estate
• Real estate agent
• Foreign property France
• Foreign property Italy
• Foreign property Spain
• Foreign property Mallorca
• Luxury Real Estate Mallorca
• Off market – especially in hot real estate markets

Buying real estate: Tips from the investor (external)

Buying real estate but also investing in real estate requires a lot of knowledge and expertise. The best way to learn is to draw from the experience of professionals. Therefore, in conclusion, a recommendation for real estate beginners.

Newcomer Tips + Germany Comparison: Buying Real Estate

External guide (link opens in new tab):

• First property purchase
• Buying real estate: What to look out for?
• Buying mistakes
• Save taxes with real estate

Comparison of cities: Purchase prices in Germany (external)

In these individual guides to the major German cities are the important districts for real estate buyers, information on the infrastructure, as well as prerequisites for the purchase such as income, creditworthiness (credit rating), banks and equity. But much more important: mistakes, risks, rental yields and more. What is decisive for the purchase price and the valuation? Everything about location, building fabric, renovations, equipment and all that, free of charge.

External guides (link opens in new tab)

City / Purchase Price Current:

• Munich ~ 8,993 Euro / m²
• Frankfurt ~ 6,701 Euro / m²
• Stuttgart ~ 6,324 Euro / m²
• Berlin ~ 5,578 Euro / m²
• Hamburg ~ 5,507 Euro / m²
• Düsseldorf / Cologne ~ 5,470 Euro / m²

Tips & Tricks – Painting with white paint

Even white paint can be stained and not only if you paint over another color. To make the white walls beautiful and even there are tips to follow to make painting a success. Tips on wallpapering can be found here: ‘How to wallpaper properly’.

Tip 1 – Calculate the ink consumption

Before you start painting, you should first find out how much paint you need to paint the desired area. So that you don’t run out of paint in the middle of painting or have buckets of paint left over, you should measure exactly. There is a simple rule of thumb for this. You calculate the length times the width and multiply the result by the consumption per square meter (is noted on the paint bucket). For example, it looks like this:

4 m x 5 m = 20 sqm
20 sqm x 150 ml/sqm = 3000 ml = 3 litres

You can calculate with this guide value and plan accordingly much paint. Note, however, that the guide values on paint buckets refer to a smooth surface. With woodchip and textured wallpaper, the surface area increases and so does your consumption. Calculate a flat rate of 20 percent more paint, because you prefer to have a little over at the end than to have too little paint.

One factor that is often forgotten is the ceiling. Most do not calculate the area from the beginning, because the effort would then really be too great. However, it is often only when painting and in direct comparison that you notice that the ceiling has a gray haze. The contrast between the wall and the ceiling then suddenly looks completely different and you also have to paint the ceiling. So before buying paint, test whether the ceiling also needs a new coat of paint or not. If this is the case, also include the ceiling area with the formula given, as paint is also used here. Always start by painting the ceiling and then work your way along the walls so that any splashes from painting the ceiling can still be wiped off and do not destroy the fresh paint.

Tip 2 – get all the tools

Of course, before you can start painting, you need to go buy all the utensils. The most important thing is the paint. Because not all white paint is just white paint. There are some differences here as well. Here it comes down to opacity, coverage and wet abrasion resistance. It is important that you really should not save money on paint. The price-performance ratio should be reasonable, but some indicators should have the paint. Ideally, reach for the paint bucket with a high opacity class 1, as this has a high proportion of white pigments. Cheaper rides have less of these pigments, which leads to the fact that they have to paint two or three times. Logically, this infers higher consumption and therefore higher cost. As you can see, it pays to go straight for the higher quality paint bucket. The second quality criterion you should pay attention to is the wet abrasion resistance. This indicates how resistant the paint is to mechanical abrasion. This includes, for example, deviation. Here again, class 1 is the best and represents a real quality criterion.

But what else do you need? Here is the checklist for your shopping at the hardware store:

• Good and high quality wall paint in white (or the desired color)
• Protective materials for covering, such as masking film and masking tape
• A paint roller suitable for the substrate (one for each helper)
• Brush or corner roller for corners and edges
• Stirring rod for mixing the paint (a wooden stick will do)
• Telescopic rod, for higher walls or ceilings
• Scraper grid and paint tray

other helpful utensils that you should find in your household:

• Old, clean preserving jars to store leftover paint
• Sponge or brush to remove dirt from the wall
• Ladder or third board
• Damp cloth to be able to remove paint splashes
• Old clothes that you can wear for painting
• Plastic bag to be able to pack the paint rolls

Tip 3 – prepare your work surface

Once all the utensils are purchased, you should consider the nature of the walls to be painted. After all, not every surface is the same and there are different things to consider. First of all, the surface should always be solid, dry and not chalky. If this is not the case, make sure it is by removing old paint or possibly removing any existing wallpaper. So if your substrate is in the right condition, remove any nails, screws and wall plugs you no longer need from the wall and fill any existing holes with putty. Cracks in the wall should also be scraped up, brushed out and filled. You can recognize chalky surfaces if you run your hand over the wall and a chalky abrasion remains on your hand. If this is the case, rub the surface with a damp sponge. For uneven substrates, it is generally recommended to apply a primer coat before applying the actual paint, otherwise the substrate will reduce the binder and the paint will lose strength. So if the substrate is well prepared, it should also be clean. Typical renovation marks are sawdust or gypsum particles but on an older woodchip wallpaper some dust collects over the years which can cause black spots when painting, as well as cobwebs which should be removed beforehand. Protect yourself against such mishaps by wiping the wall with a clean or new broom and remove these remnants.

Tip 4 – Tape off everything incl. sockets & door frames

The last step before painting can begin is masking. This will not only protect your floor, but also your furniture. To do this, use the foil you bought at the hardware store and bother it with masking tape. Go along the baseboard and attach the film here with masking tape once in the entire room. Furniture is best placed in the middle of the room, over which you can then throw another piece of foil. But also door and window frames should be taped thoroughly, so that no paint gets lost there. Think in this course but also sockets and light switches. These should also be taped with masking tape or removed completely. But you have to be careful here. When you remove the sockets and light switches, first switch off the power by removing the fuse and then test with a phase tester whether there is really no more current. Only then remove the sockets and wrap the insides in a bit of newspaper or tape so you can brush over them.

Tip 5 – the right paint roller & mixing the paint

Now it’s time for the big painting to begin. The most evenly paint with a paint roller. Depending on the given surface, there are different ones that are best suited. There are short and long pile rollers. The short pile rollers are more suitable for smooth substrates, while long pile rollers are ideal for surfaces such as woodchip wallpaper, because you get the paint in every pore.

Before painting, stir the paint well again, preferably with a wooden stirring rod, so that the consistency is correct and settled elements are mixed. The binder is brought in well by the stirring, which is why there are no streaks on the wall.

Tip 6 – Paint edges and corners first

Now the painting can also begin. Start with the difficult small areas. These include corners, edges to ceilings and skirting boards, areas around taped sockets, window and door frames or radiators. Do not paint these areas with a paint roller, as it will become uneven. A flat brush or specially wrapped corner rollers work well for these surfaces. These corner rollers, also called mouses, are small paint rollers that are perfect for such difficult areas. Work on these areas from the top down. Paint these areas only enough so that they do not dry before you start painting the large wall areas, otherwise lugs or irregularities will form.

Tip 7 – Moisten the paint roller with a wiping grid and paint tray

Before you simply go into the paint bucket with the roller, remember that you can achieve a more even result by wetting the roller than with a dry one. To do this, hold the roller under water and drench it evenly. Afterwards, wring out the roll thoroughly. Wrap the roll in a towel and beat the roll vigorously several times so that not too much moisture remains in it. If the roller is too wet, the paint may run down the wall because it is too diluted and the result will be uneven and watery. Moistening ensures that the roller absorbs the paint regularly and thus ensures a consistent painting result.

After moistening the roller, dip it into the paint bucket. Afterwards, do not forget to roll the roller along the wiping grid. This not only distributes the paint better on the roller, but also removes excess paint. This makes it easier for you to paint, as the roller is easier to use and you don’t get a lot of paint on the wall at once. An even application of paint is therefore guaranteed. For smaller jobs and hard-to-reach places, a paint tray is ideal, in which you can fill a small amount of paint and you can use more easily.

Tip 8 – start painting

When painting, it is very important how exactly you paint. Always work with the incidence of light and always start the paint application at the window. This prevents that approaches become visible afterwards and disturb the wall picture. Enough paint on the roller and always painting wet-on-wet will avoid marks that would normally be visible if the light fell at an angle. Always apply the paint vertically to the wall in two to three times the width of the roller, using M or W movements, spreading the paint evenly and rolling it horizontally without applying too much pressure. Remember to always paint into a piece of damp wall to make transitions regular. If there are irregular spots or stains, touch them up or paint over them a second time.

Tip 9 – make sure the work is clean

Even the best master painter sometimes misses a blob of paint. It is important to remove the stain as quickly as possible, because once the paint has dried, it is difficult to remove it again. Ideally, you have covered everything properly with foil and the stain is only on the foil. But if it does land on carpet or parcel flooring, you have to be quick. In the case of a carpet, you should remove the stain quickly with a damp cloth. It is best to dab and not wipe, as this could only make the stain worse. On parquet, paint can usually be wiped off quickly. If you notice the stain after the fact, it’s best to remove it from the hardwood flooring with a flat tool like a spade, and the paint will usually just flake off. If a blob does go on the vinyl, make sure before you leave that you don’t have paint on your shoes / socks / feet from accidentally stepping in it. Such paint can spread quickly through your steps in other rooms and you do not want that.

Tip 10 – Allow paint to dry

Once you have finished painting, you should leave the paint to dry in peace. It is best to open the windows and give the paint enough time to dry. Normally, it takes about 24 hours for paint to dry completely. Airing out the windows helps the paint to dry faster and has the positive side effect that the scents of the paint quickly leave the room and do not give you a headache.

Tip 11 – Store residual paint correctly

If there is any paint left over, you can store it for later improvements. It is best not to do this in the original packaging, but transfer the paint into clean canning jars, seal this tightly and store in a dark place. Wall paint does not last indefinitely, however. Paint also spoils after some time and then cannot be used any further. On the packaging of the paint, however, the general shelf life is always indicated. Spoiled paint can be disposed of at your local hazardous waste collection point and dried paint residues can simply be disposed of in the residual waste. Disposal instructions can also be found on the product packaging of the products used.