Buying a house: High cost, high risk

The dream of owning your own home – for many, this is a life goal that needs to be achieved. Besides many positive aspects, owning your own home also has its downsides. When you buy a family home, whether for your own use or as an investment, you are always 100% responsible for the costs incurred. Read more about the risk of buying a house here.

(Alb) – Dream: The pitfall of home ownership

For many, the former dream of owning their own home often quickly becomes a nightmare. Many use a building savings contract to pay off a house until retirement age, with the intention of living rent-free. However, the assumption is usually deceptive and you still get into debt, as you are responsible for 100% of the costs incurred. So one is never completely rent-free.

• 100% investment costs
• 100% self-responsibility for costs
• Even after paying off the loan not quite rent-free

3 mistakes when buying a house

There is a lot to consider when buying a house. What many people forget are the mistakes that can be made when buying a house. Here we have the most important points for you, why we advise against a house as a first property.

Error 1

The costs incurred for the house always remain, for which you yourself are 100% responsible. You are never really rent-free with a property for pure personal use.

• Management and maintenance costs of the house remain forever

Solution – For a truly carefree life, it is advisable to maintain a second and third property that you rent out. With the proceeds from these properties you can pay the management and maintenance costs of your own property and, depending on the return, pocket the rest as profit.

Error 2

The property you bought when you were young is not suitable for your old age later on. Sooner or later, the property will have to be remodeled to meet the needs of the elderly, which will incur additional costs.

• Property is not suitable for old age later
• Costs for age-appropriate conversion
• Property sooner or later becomes too big

Error 3

Your credit rating at the bank is reduced by a property with owner-occupancy and without an additional capital investment. Through the self-use of the property, you suddenly have more current expenses than income, the running costs are also always 100% your responsibility. In the event of a job loss, the bank of you additionally has no coverage, because this means loss of income and rent for you and thus a higher risk for you and the bank.

• More running costs, less spending
• Costs 100% personal responsibility
• Job loss means loss of income and rent – risk

Source: Real Estate Types/ Real Estate Experience.com

Multi-family house: high equity, high costs

So owner-occupancy is the most expensive way to live. The situation is different with investment property. Here the tenant and the tax office more or less pay off your debts. Therefore, we now come to a multi-family / multi-party house. But real estate beginners are warned! This area is more for experienced people.

So when should you think about buying an apartment building? When you have enough equity to cover the purchase price, management costs, maintenance costs and modernization costs. Despite the ongoing rental income, here, as with owner-occupation, they are 100% responsible for all costs incurred.

Here again in brief summarizes the disadvantages of a multi-family house:

• High equity required to cover costs
• 100% of the costs must be borne by the owner himself as the owner

Residential and commercial buildings (WGH)

WHGs behave similarly to multi-family houses, but are nevertheless much riskier to invest in. Since they are equipped with commercial space in addition to residential units, they are vacant more often than residential units. The area must be maintained nevertheless, whereby additional costs result. This in turn means that you have to raise more equity.

• High risk due to vacancy
• Even higher equity required
• Vacancy must be kept in operation – More costs

Condominium: High yield & cost sharing

The solution for your first property? A condominium! The big advantage? When you buy a condominium, you are part of a community of owners, so you don’t have to bear the costs of a house all by yourself. The costs for maintenance, repair and modernization are shared among all owners. Regardless of whether it is for your own use or an investment property, the running costs are always lower than in a house where you are the sole owner.

• Part of a community of owners
• All costs incurred are divided by the number of owners

A short example: Let’s say we are talking about a heating system for 16,000 euros. You are part of an 8-part apartment building, with 1 condominium. The costs are divided by 8, so you pay -14,000 less and only 2,000 euros for the new, modern heating system.

Commercial, special real estate and monument protection

You should take a closer look at properties with commercial use, listed buildings or properties for a special purpose before buying. Why, you will learn here in a short overview!

Commercial property

• Nothing for beginners
• Subject to different legal framework than residential
• More frequent vacancies than for residential space (fluctuation)

Special real estate

Villa, farm, winery or even workshop and shopping center, all these are special real estate.

• More difficult financing due to high risk for banks
• Rather buy in A- and B- locations, as a rural location carries too high a risk

Real estate under monument protection

Real estate with historical value and special status (rights, obligations, taxes and subsidies).

• Tax incentives
• Higher costs for repair
• Restrictions on structural changes

Conclusion: What should I invest in at the beginning?

If you look at our comparison, you can clearly see that every property, except condominium, has disadvantages. Therefore, our conclusion is: condominiums are the easiest way to get started in real estate. Here again briefly our most important points at a glance:

• Self-use is the most expensive way to live – you are responsible for 100% of the costs yourself
• Ideal case for entry: condominium, for rent (investment), with good return!
• If it is to be owner-occupied, then directly with 2nd or 3rd property as an investment.

The next step: how to build your assets?

Are you interested in real estate to secure and build up your assets? Then read on here: Everything on the subject of investment, value investment and inflation.

Bricks Berlin: Architecture as an opportunity for conversion projects

The “Bricks Berlin Schöneberg” is one of the projects of the successful architecture firm Graft from Berlin (more about Graft later). The building complex, which extends over various houses, is one of the flagships of Graft. The challenge of this project was the revitalization of a former post office site, where the conversion for commercial, university and gastronomy purposes, as well as the addition of two new buildings were required by the client. On a total gross area of 32,000 m², work was carried out over a total of 7 years (2014 – 2020) to complete this major project. What makes the Bricks Berlin Schöneberg so special, you will learn in the following.

© BTTR GmbH

Location in Berlin Schöneberg

The Bricks in Berlin is centrally located in the Schöneberg district, partly directly on the main street, partly on Belziger Straße. The accessibility is very good via roads via car as well as via public transport, making the building complex easy to reach for everyone. The area around the building is one of the most popular residential areas of the city and makes the apartments contained in the Bricks particularly attractive.

Streetview: Here you will find Bricks Berlin, Live View

You want to know what Bricks Berlin looks like live and in color? Then use Google StreetView to take a direct look at the building! Take a look around the neighborhood and virtually discover the area around Bricks Berlin on your own.

Special Features: Brick facade for apartments, offices, restaurants and more

Bricks Berlin is a special and complex architectural project. Decisive here: Due to the partly listed buildings, special sensitivity had to be shown here – instead of new construction, the primary focus here was on revitalization. Two new buildings were added to the historic post office site in Schöneberg, and the former roofs were activated for commercial use. This resulted in a modern building complex of shops, offices, restaurants and apartments open to the public on a total area of 32,000 m². Green spaces in the direct vicinity and a great infrastructure make this location particularly attractive.

The buildings, some of which are listed, had to be preserved and thus represented a major challenge for the architects. Different buildings were given an individual character – which in each case also results from the creation of the buildings in different decades – and yet in total fit into a coherent overall picture. Brick facades form a core design element here.

© Trockland

Technical data: location, builder, construction period and more

The Bricks Berlin Schöneberg was a challenging project over a very large area, and accordingly took several years to complete. Here you can find some of the technical facts about this revitalization project, such as the builder or the location.

• Location: Hauptstraße & Belziger Straße, Berlin Schöneberg
• Project: Revitalisation, conversion & extension
• Client: Trockland Management GmbH
• Period: 2014 – 2020
• Total gross area: 32,000 m² (total)

© BTTR GmbH

Architekten Graft: Founder Interview – Real Estate & New Construction Projects

The architectural firm Graft is a nationally and internationally successful company that now has offices in Berlin, Beijing and Los Angeles. With over 150 architects and awarded with various prizes, Graft is a highly renowned architecture firm. Their portfolio includes a wide variety of projects all over the world, from historic preservation and container buildings to modern high-rises and future projects such as e-filling stations or Volocopter stations, Graft is extremely versatile. For even more information on Graft, check out our in-depth article here: Graft Architecture Firm. We also conducted an interview with the founders, whose inspirations and exciting answers you can read here in 3 interview parts:

1. Architect’s office
2. Residential & Mixed Use
3. Future: E-car charging station & Co.

© BTTR GmbH

More pictures & impressions of the Bricks Berlin

Here you get more impressions about the Bricks Berlin Schöneberg, facade and the special features of the design. The signature look here is especially the brick facade and the corresponding, natural color scheme.

© Trockland

© BTTR GmbH

Features and characteristics of a half-timbered house

The term half-timbered house, which in Switzerland are also known as Riegelhaus, describes a construction method of houses that has been known for centuries. This is because the materials that are and were used for the construction of an authentic half-timbered house are natural materials that were quite easy to obtain in the area and at the same time could withstand wind and weather.

In classic half-timbered houses, materials such as straw, clay and even calf’s hair were used not only to build a wall, but also to insulate it additionally. The most striking feature of half-timbered houses is the façade, in which the literal half-timbering – the beam construction of the house – is openly visible. Often the “work”, i.e. the wooden beams, is not plastered in the interior either and accordingly a unique living atmosphere is offered. This fits perfectly with the country house style, for example.

Tip. Are you still thinking about buying or building a house? Then take a look at our article in which builders and experts report on their experiences!

Are you looking for the right house? Then check out our guide! Here you will find definitions, meanings and lots of information: House types from A-Z

Structure and room layout: rooms, walls, ceiling height & Co.

The basic structure of a half-timbered house is the typical wooden beams, which are exposed to the outside and give the half-timbered house the look we all know. The ‘fan’, the open spaces between the beams is filled with a mixture of clay, straw and hair, bricks and mortar or, very modern, concrete. The type of filling the house has is determined by age, preferences and also the skills possessed by the renovators.

A very special feature of half-timbered houses, especially in cities, is that they become wider towards the top. The reason for this is that even in the past, building land was expensive, so people tried to get the most out of the land they bought.

Additionally, on some half-timbered houses, decorations can be seen on the wood or in the way the wood was set. These decorations show that the original builder was wealthier and therefore wanted his house to stand out from the others. Especially around market places in towns and villages these decorations can be found.

Source: Half-timbered house (Lukinski.de)

Advantages & disadvantages half-timbered house: insulation, renovation and more

For many, the dream of a half-timbered house is based on the fact that they themselves grew up in one, or that half-timbered houses were omnipresent in their own homeland. So positive memories are often associated with the type of construction.

If you’re understandably a fan of timber framing too, or are thinking about moving into or renovating a timber framed home, then we’ve put together a few pros and cons for you to potentially help you decide if you do indeed want to make the move to timber framing.

Advantages: Tradition and memories

As already mentioned, half-timbered houses are a place with which many of us associate memories. Especially the renovation and reconstruction are heartfelt projects for many owners, which are carried out with a lot of passion. The traditional buildings also often enjoy listed status, which is why owners can enjoy government subsidies. In addition, the charm of a half-timbered house is simply unique, and offers you very special living.

• State subsidies
• Living in a rustic way
• Cultural preservation
• Exciting living environment

Disadvantages: Expensive renovation and co.

With historic houses of course also come a few not to be neglected disadvantages, especially in terms of energy sustainability, half-timbered houses can bring quite a few disadvantages with them. However, this can be partially improved with renovation measures.

• Monument protection
• Insufficient roof insulation
• Low doors and ceilings
• Extensive repairs

Half-timbered houses: living for couples and families

Half-timbered houses come in very different designs with gardens and without, in the city and in the country. Above all, a half-timbered house is usually winding and equipped with many stairs. So whether a half-timbered house is suitable for you, we try to answer you in the following.

Families: adventure playground and perfect for children

Families with children will definitely feel at home in timbered houses. The nested houses offer adventures for children and the layout allows most to have their own bedrooms. In addition, many half-timbered houses also have gardens where the little ones can let off steam.

Couples: Renovation as a joint task

Are you looking for a task that you want to master together. Then perhaps the renovation of a half-timbered house is the right thing for you. Because there’s something for everyone to do here, whether it’s larger, craft projects or small painting tasks, a renovation requires all of the above. A timber-framed house in particular has very specific needs. And the living space is definitely there too. So if you’re up for it, all we can say is: get stuck in!

Pensioners: listed buildings and rarely barrier-free

Older people, which we have summarized here as pensioners, can enjoy living in a half-timbered house very much. However, this type of house is very rarely barrier-free and the monument protection, under which many half-timbered houses are, makes it difficult to set up disabled-friendly living. Whether another living environment would not be more suitable in old age should therefore be considered carefully.

Special features: Redevelopment, history and co.

The position of the type of house as a lover’s property is something we have highlighted many times in this article. For multiple reasons, living in this house is sometimes difficult, but can just as well be unbeatably great for other reasons. In order to support the disadvantages and advantages a bit more, we have taken a closer look at the topics of renovation and architecture.

Refurbishing half-timbered houses: potential costs

Renovating historic buildings from the ground up can be really labor intensive and you are advised to check a few factors before you decide to renovate. For example, whether there are experts in your area who are familiar with half-timbered houses.

In addition, the protection of historical monuments naturally plays a decisive factor in the preparation. You should consider these factors to guarantee that the dream of a half-timbered house is not connected with a rude awakening.

• Half-timbered houses are listed
• Historical building methods must be learned
• Experts are rare
• Higher costs may be incurred (400 – 600 € per sqm)

Building style half-timbered: history and architecture

If you are interested in half-timbering not only because of its beautiful appearance, but also because of the history that lies in every single wooden beam, we have put together a small overview for you that briefly summarizes the most important steps in the history of half-timbering:

• 15th century: The frame construction method is developed
• 16th century: Half-timbered houses conquer Germany
• 18th century: Half-timbering is so mature that even huge buildings can be erected in the architectural style
• Today: The historical style is combined with modern possibilities

Energy efficiency: What timber-framed house owners should consider

The energy efficiency of a half-timbered house depends very much on how old the building is and how much renovation and modernisation work has been carried out on the house in recent years. A modern half-timbered house, for example, has similar values as a new building in other architectural styles. Nevertheless, the following should be considered for older half-timbered houses in terms of energy sustainability:

• Sale also possible without energy certificate
• Energy efficiency is often poor
• Old insulation often needs to be replaced

Before moving in: What you should know

In itself, moving into a renovated half-timbered house is not particularly different from moving into any other house. As always, the year of construction, or the year of the last renovation and refurbishment, is relevant to whether the house is subject to special circumstances. However, prospective buyers of a half-timbered house should consider a few factors:

• Historic preservation?
• Year of manufacture?
• Insulation?
• Energy certificate?
• Suitable craftsman?

Buying a timber frame house: Tips & Possibilities Financing

Owning your own property has a number of advantages. As a homeowner, you have a lot more freedom when it comes to designing your own four walls. But with the freedoms also comes quite a bit of responsibility and additional costs that you do not necessarily calculate in advance.

• Service charges: 3 €/sqm per month
• Maintenance costs: 1,50 €/sqm per month
• Notary fees: one-time 1.5 – 2 % of the purchase price of the property
• Recommended equity capital for the purchase of real estate: 20 % of the purchase price

New building in half-timbered style: classical architecture revisited

Are you put off by the cost and effort involved in building an old half-timbered house? In this case, you can also resort to the option of building a new property. There are construction companies that specialize in the construction of modern houses in the half-timbered style.

Pro: Modern technology in traditional garb

Building a new half-timbered house definitely makes sense from an energy point of view, but if you have the time and the interest to let an old half-timbered house shine in new splendour, then you are definitely advised to do so, because the preservation of historic buildings is very important.

However, if you can’t put the time into upgrading a frame house, new construction is a good alternative.

Cons: Historicism

A major criticism voiced by some architects and art historians about new construction in the half-timbered style is that the original, sustainable style of building purely from natural materials is often no longer the case, but that it is only a matter of the visual aspect. Thus, materials are often used which, in the view of some, do not do justice to the half-timbered style.