Preserving and increasing the value of existing real estate, what is important?

Hello everyone,

I have been reading here on and off for some time now, as a few years ago we wanted to build a semi-detached house. For various reasons, it eventually became a resale property, but I still like to check in here because the topic continues to interest me and you can get good tips for renovation, remodeling, etc. I hope I have found the appropriate subforum for my concern. It is basically about "(future) buying/selling advice."

We have now been living in a semi-detached house, built in 2007, for five years. Like almost everyone, we initially wanted a detached single-family house and thought that if we moved out of the city, it would work out. But everything was either too expensive or too far out, which my husband especially did not want, so we ended up in the commuter belt of a big city. It is very rural, we feel comfortable here, have since had children, and have "put down roots."

Nevertheless, the dream of the dream house doesn’t quite let go of me. In retrospect, we probably could have borrowed more money and bought a detached house, considering how our situation and house prices have developed. But ifs and buts... We were very cautious and reserved.
In any case, this means we are now in the comfortable position of being able to comfortably pay off the semi-detached house within the fixed interest period. By then, our son will already be "grown up."

When the time comes, we will probably sell and then want to fulfill a "living dream" once again, if possible. I don’t see that happening before then; prices here are, like in many places, beyond all reason, not to mention the current interest rates, and it is certainly easier to switch from a fully paid-off house than with an outstanding loan. And with a child, I don’t want to live in a dormitory; I experienced that myself as a teenager and found it terrible. Therefore, moving to cheaper areas is currently out of the question.

We will both be in our early/mid 50s then and thus still have time to service a smaller loan. Maybe an inheritance will come in (I only count on that once it actually happens; who knows what will happen until then...). However, the potential sale of our semi-detached house would also have to bring a good price, and the house will not get any younger.

Which brings us to the topic: We like modernizing our house, but I’m worried that we might put money into the wrong places that won’t interest a buyer in the end. Better to invest money in places that increase the value.

What is important there?
So far we haven't done much, only:
- Finished landscaping the garden (it was more of a meadow)
- Built a patio roof and carport with shed
- Renewed the ceramic in the guest toilet

The semi-detached house was built in 2007, normal developer standard, nearly 110 sqm of living space.

In the next few years we would like to:
- Convert the attic, stairs and supply lines are already available (it will be a very small room, not sure if it will even count as living space? But it would be an extra room)
- Replace doors and floor coverings
- At some point renovate the kitchen and main bathroom; after 15 years it is all still okay
- The gas heating will certainly give out in the next few years; we have to see what will happen then. Unfortunately, apart from the main bathroom, we have no underfloor heating. The masonry is 30 cm Ytong, if I remember correctly. No KfW-anything standard, but 2007 "normal equipment."
- Replace the two beech staircases on the ground and upper floors with something nicer... probably a matter of taste and not financially very sensible?
- Re-pave the terraces and paths

I assume we are already on the right track with more space and a new heating system. But surely you have knowledge, tips, ideas about how much money and in which areas one should invest if the house is not going to be "forever," but it is currently our beloved home and, of course, should please us well. I just don’t want to over-Make a "standard house" because, due to the small size and location, it will still be interesting mainly for young couples/families without a huge budget. But since I’m not an expert, I wanted to ask here.

We would like to do the following in the next few years: - Convert the attic, stairs and supply lines are already present (it will be a very small room, whether it will even be counted as living space? But it would be an extra room)

Is potentially subject to approval, without living space no room, that would then be storage space.

- Replace doors and floor coverings

Yes, you can do that, but it will not significantly increase the value, rather secure it.

- Sometime renovate kitchen and main bathroom, after 15 years everything is still okay now

See previous point

- The gas heating will certainly give up in the next few years, then we have to see what it will be. Unfortunately, except for the main bathroom, we have no underfloor heating. The masonry is 30 cm Y-Tong, if I remember correctly. No KfW-anything standard, but 2007 "normal equipment".

Gas heating is currently not popular in our area. If you have 2007 insulation values, I would tackle that first. Energy will not get cheaper.

- Replace the two beech stairs on the ground and upper floors with something nicer... probably a matter of preference and not financially very sensible?

Purely a matter of preference

- Re-pave terraces and paths

Preservation of value, no increase I would invest where it increases your living comfort and benefits you. Don’t do it for future buyers who will want everything different from you anyway.

No one can look into the future, but the following things will definitely increase value:
- Insulation
- Heating technology
- Renewable energies
- Heat protection
- Extension (annex, garage, etc.)

Everything else will probably be more about value preservation.

Thanks already for the answers! So rather heat pump than new stairs, as suspected (too bad :)). I would also be reluctant to install gas again if the old heating system breaks down. However, without underfloor heating, photovoltaics (our roof is completely shaded by the neighbor's oak tree), and with the current electricity and procurement prices, it is rather problematic at the moment. I hope this will change in the next few years and our heating system will last that long.

It is potentially subject to approval, without living space no room, that would then be storage space.

We would consult an architect beforehand who would calculate the potential living space, help us with approvals, etc. The neighbors with an identical semi-detached house have converted their attic, so that should generally not be a problem, as everything is already prepared with the stairs and the wiring. The previous owners just never got around to tackling it. Unfortunately, I don’t know whether it officially counts as living space for the neighbors and what the exact dimensions of the room are. They only rent, so they won’t have any documents about that.

Heat pumps without additional insulation will not make you happy. They can't work magic either. How high is your heat demand?

We have now been living in a semi-detached house, built in 2007, for five years. Like almost everyone, we initially wanted a detached single-family house.

You already live in a single-family house – or are there other families in the house? *Smartass mode off*

I don’t see that happening before; prices here are, as in many places, beyond all reason, not to mention the current interest rates, and it is definitely easier to move from a paid-off house than one with remaining debt.

That is a misjudgment that it will be easier with a paid-off house in the future. Why? Because you - still have a modern property now, which can also be sold at prices beyond all reason - can simply carry over the remaining debt to the new property, so there is no advantage if the property is paid off - currently, a semi-detached house is more in demand than a detached single-family house, as it is cheaper due to a smaller plot

We like to renovate our house

Maintenance or renovation? Renewing floors, doors, ceramics is not renovation. Neither is replacing the heating – unless it is a heat pump possibly combined with external thermal insulation composite system (ETICS) and underfloor heating. Renovation would be: renewing the electrical system, installing a more modern heating system (heat pump etc.), roof insulation, basement ceiling insulation, etc. The other measures serve to preserve value (maintenance/renovation), not to increase value (modernization). The problem in the future (when is that supposed to be anyway? I have not read a year) will be uncertainty and, depending on timing, the age of the property. If energy prices continue to rise and/or politics impose a mandatory retrofit (which you might not have implemented yet) and at the same time the prices for new properties and plots go up, the plan could backfire. But that is all crystal ball gazing. I would simply keep the property well maintained and always keep it modern (timeless floors like oak planks, bathrooms also not tiled in orange or similar). The 2007 energy saving ordinance requirements were already good, so heating costs should still be moderate. This is not an energy guzzler and in my opinion already in the current condition, without much effort (replacing radiators), heat pump-capable.

- Convert the attic, stairs and supply lines are already there (it will be a very small room, whether it will even count as living space? But it would be an extra room)

Lastly on that. That is of course a significant increase in value. Formally, I assume it will not become living space. However, the conversion can still be done without approval – it just may not be officially used as living space. But that does not matter to a potential buyer either. He has a well usable space that he will pay for. Even if it only becomes a playroom for a child or similar.