Spacious detached house from 1935

When purchasing a newly built property, a building description is attached to the certified purchase contract as an essential part.

There are three standardised methods for determining the value of real estate in Germany: the comparative value method, the capitalised earnings value method and the asset value method. The aim of the valuation is to determine the market value of the property.

Before buying a property, the building fabric and building services should be examined in detail. In the case of houses, the building must be thoroughly examined from the outside. Are the facade, windows and doors in order? Is there a need for repair? The gutters, downpipes and exterior lighting should also be considered.

The risk profile of the property should be comprehensively assessed as part of a "due diligence", i.e. a simple consideration of the gross yield (annual rent : sales price x 100) is certainly not sufficient. This involves a large number of assessment steps, which are only presented as examples in the context of this blog.

This depends, among other things, on the value of the property in conjunction with the tax allowances. Consultation with a tax advisor or accountant with corresponding costs is advisable.