
Construction prices are rising – is it better to buy an existing property?
More and more often, we hear and read about home builders who are already in the middle of fulfilling their dream of owning their own home, only to find themselves falling into a cost trap due to rising construction costs or having to abandon their home building project altogether. Prospective buyers and landowners are therefore wondering whether building a new home is really worthwhile.
Requirements for buying and building
Those who have a good credit rating and can afford to pay the installments on a loan in addition to rising living costs have a better chance of being able to afford a property or successfully complete the construction of a house. There are also government subsidies for energy-efficient houses. Banks now offer "green" loans that climate-conscious builders can take advantage of.
Avoiding mistakes in your construction project
To avoid mistakes and stay within your budget, you need to plan and calculate carefully. Before signing a contract with a construction company, the house should always be planned in advance by an architect who is independent of the construction company. The costs and application for house connections should also not be underestimated. The specifications of the network operator must also be observed here. However, these are just a few of the challenges that can lead to additional costs.
Take advantage of subsidies
Those who build in an energy-efficient and climate-friendly manner receive subsidies from the government or from banks specializing in environmentally friendly construction. The less energy the house consumes after completion, the higher the subsidies. Applications for government subsidies can be submitted by property owners to the BAFA or KfW before construction begins.
Buy a house instead of building one
Those who cannot afford a new build despite financial subsidies, or who consider the risk too high due to rising construction costs, material shortages, and a lack of skilled workers, can buy an existing property. If you are looking for a property, you can also request discreet offers from estate agents that are not published, or place a search request so that the estate agent can look for a suitable property for you.
Are you unsure whether building a house is worthwhile? Or would you like to buy a property? Contact us! We will be happy to advise you.
Notes
For reasons of better readability, the generic masculine form is used in this text. Female and other gender identities are expressly included insofar as this is necessary for the statement.
Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific case.
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