Building prices on the rise - would you rather buy an existing property?

The cost of new builds has risen sharply. Hardly anyone can afford to build a property. Whether a new build is financially viable depends on several factors. When is a new build worthwhile and when should prospective buyers look for an existing property?

More and more often listens and reads It is not uncommon for house builders who are already in the middle of fulfilling their dream of owning their own home to fall into a cost trap due to the rise in construction costs or have to abandon the house building project altogether. Prospective buyers and property owners are therefore asking themselves whether a new build is really worthwhile.

Requirements for purchase and construction

If you have a good credit rating and can afford the repayments on a loan with your salary in addition to the rising cost of living, you have a better chance of being able to afford a property or successfully complete the construction of your home. There are also state subsidies for energy-efficient homes. Banks now also offer "green" loans from which climate-conscious builders can benefit.

Avoid mistakes in the construction project

In order to avoid mistakes and not exceed the budget, it is important to plan and calculate well. Before signing a contract with a construction company, the house should always be planned in advance with an architect who is independent of the construction company. The costs and the Application for the house connections should not be underestimated. The grid operator's specifications must also be observed here. But these are just a few Challenges that lead to additional costs can lead.

Take home subsidies

Anyone who builds in an energy-efficient and climate-friendly way receives subsidies from the state or from banks specializing in environmentally friendly construction. The less energy the house consumes after construction, the higher the subsidies. Property owners can apply for state subsidies before the start of construction at the BAFA or KfW place.

Buying a house instead of building

Anyone who cannot afford a new-build project despite financial support or for whom the risk seems 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 submit a search request so that the estate agent can look for a suitable property.

Are you unsure whether building a house is worthwhile? Or would you like to buy a property? Get in touch with us! We will be happy to advise you.

Notes

For reasons of better readability, the generic masculine is used in this text. Female and other gender identities are explicitly included where 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 individual case.

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