Purchase + renovation of an old house: pros and cons??

So we ultimately decided on a new build. The reason for us was not only the money, which would not have been enough for renovating such a villa. The location was also important because of the commute to work.

These old villas or manor houses naturally vary greatly in price, depending on proximity to the city. In the countryside, we had two nice examples. One would probably have been available for around 50,000, even cheaper with a bit of bargaining. However, woodworm in the roof. I think it was about 250m2. I remember 8 windows in the front and back and at the top the roof with ornate round-arched windows. Very cute. Renovation would cost no less than 300 - 400K€. Well, if you’re passionate about it, you can consider renovating just a part of such houses at first, but the roof is almost always due. Huge plot of land, of course, around 4000m² with a little creek – very nice.

The other was near the city (about 20km from Leipzig). That one was asking 160K€. At first glance a really great villa. But it had burned once... The roof was still okay, but in the end also a palace – unaffordable for us at that entry price. You would have had to spend around 250-300K€ just for renovation.
Important when house hunting: don’t be discouraged by the first impression. It’s best to bring a specialist to assess the structure. Some ruins turn out to be a solid base, and many beauties are just deceptive and often an energy and renovation disaster.

ypg: Because I would take my time with the renovation and only work with the money I actually have on hand. Of course, I would only buy a house that is habitable...do some initial renovation work beforehand, for a few months, and then move in...while living there, renovate piece by piece. I wouldn't take out an extra loan for the renovation, and I would do everything myself...so no companies involved. I know people who are knowledgeable about house construction; they can give me tips...my grandparents built a house themselves and also helped my aunt with her house construction. No idea if I'm imagining that too utopian...so that the renovation then takes forever.

Yes, I know the difference between property transfer tax and property tax. I meant how the property tax of the property can be influenced...so if I renovate and increase the value of the house, whether I then have to pay more property tax.

kaho: Yes, the house search is really time-consuming and without a professional you’re usually lost. But the professional also wants to be paid... Yes, I think a new build is out of the question for me; I don’t want to pay off a loan for decades...you never know what the job situation will be like in 20 years (unfortunately, my equity is only €10,000). How much equity did you have when you bought your house and how much did it cost?

You have already understood the property tax correctly...if you increase the value of the property, for example through extensive renovation or refurbishment, the property tax will also increase

Mycraft: So, that means when I finish my renovation work, some guy has to come by to reassess the value of the property? What if these works take years... with something being renovated every month and the value increasing... but every month (or every year) you send a guy over to fix the value... or are they not so picky with the tax office and only do it when everything is finished? Maybe a stupid question, but it's unclear to me right now.

The determination of the property tax takes place in three stages:

[*]Determination of the assessed value (EW) → Notice of the assessed value
[*]Assessed value x tax assessment rate = tax assessment amount → Notice of the property tax assessment amount
[*]Tax assessment amount x multiplier = property tax → Notice of the property tax
[*]

a) Revaluation

[*] A revaluation is carried out if the actual conditions of the property have changed (e.g. due to construction measures – demolition, extension, conversion –) and the newly calculated assessed value exceeds the previously valid one by a certain extent (§ 22 para. 1 BewG).

A revaluation can also be conducted to correct an error in the last determination (see § 22 para. 3 BewG).

→ Notice of the property tax assessment amount
[*]

Are the few euros of property tax annually really important when you have spent several 100,000 euros on the renovation? Even with your own labor, you have to buy the materials expensively. Whether it is 300 or 400 euros annually for the property tax no longer matters.