
New build or renovation: which is more affordable?
New construction: planning costs and modern standards
A new build offers the advantage that you can design everything according to your own ideas right from the start. In addition, modern new buildings automatically meet current energy and environmental standards, which has a positive long-term effect on operating costs.
However, the costs for new construction are often higher, as not only the material and construction costs have to be covered, but also extensive planning and approval processes. Land costs, development, and any building regulations may also be significant factors.
Conversion: savings through existing structures, but unpredictable costs
With a conversion, you use an existing property, which often seems cheaper as you do not have to purchase a new plot of land or erect a completely new building. However, renovation costs can be high, especially for older buildings, particularly if structural defects or energy efficiency improvements are necessary.
Unforeseen problems, such as asbestos or outdated pipes, can quickly drive up renovation costs. It is therefore often more difficult to plan the costs of a renovation than those of a new build.
Time factor
A new build requires careful planning and can take several months or even years before the building is ready to move into. From finding a plot of land to applying for planning permission and completion, there are many steps that require time and patience.
At first glance, a renovation may seem quicker, as the basic structure is already in place. However, the construction work is often more complicated than with a new build, as it has to take existing conditions into account. In addition, unexpected delays can arise, especially if unforeseen damage is discovered.
Energy efficiency
The use of modern technologies such as thermal insulation, solar energy, or efficient heating systems can significantly reduce operating costs in the long term. This not only leads to lower energy costs but also increases the value of the property.
In the case of a renovation, energy efficiency depends heavily on the condition of the existing property. Older buildings are often not optimally insulated and have outdated heating and electrical systems that require extensive modernization in order to compete with new buildings. This results in additional costs that you should definitely include in your calculations.
Conclusion
Whether new construction or renovation is more affordable depends on many individual factors. New construction offers the advantage of predictability and modern standards, while renovation may appear cheaper at first glance but can involve unforeseeable costs.
Ultimately, it depends on your personal priorities, the condition of the property, and the local conditions. Professional advice from a real estate expert will help you accurately estimate the costs and make the right decision.
Are you unsure which option is more affordable for your property purchase? Contact us! We will be happy to advise you.
Note
For reasons of better readability, the generic masculine form is used in this text. Female and other gender identities are expressly included where necessary for the meaning of the text.
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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