Around three out of four Germans dream of buying or building a home. This emerges from the latest “Living in Germany” study by the Association of Sparda Banks. But implementation is sometimes difficult. There is no general answer to whether building or buying is the better option and depends on several factors.
Depending on the region you are looking for, it may be difficult to find a suitable existing house or piece of land. Especially in such cases, it can make sense to look for both and, at the same time, to find out about the advantages and disadvantages as well as the typical challenges when buying a house with renovation or building a house and, above all, the funding options.
Anyone who buys a property and independently commissions a construction company only pays real estate transfer tax, broker’s commission and notary and land registry costs on the property price. If you buy from the developer who is also building the house, these additional costs will also be due for the construction costs. When buying a house, the additional acquisition costs are generally calculated based on the total purchase price for the house and property.
Build or buy: which is better for whom?
It is advisable to think early on about the extent to which you can imagine building or buying a house. “There should be clarity about life planning for the next ten to 15 years: Where are you going in your job, family and personal life? In view of the rising mobility costs, the proximity of the place of residence to the workplace should also prove to be an advantage,” explains Marc Ellinger, head of the Freiburg-South Baden regional office of the Association of Private Builders (VPB).
In addition, owning your own home also requires a lot of discipline because you are responsible for all maintenance measures yourself. This does not initially apply to a new building or renovated old building in the first ten to 20 years, but in the long term renovation measures will also be necessary here – for example replacing the windows or replacing a gas heating system with a heat pump.
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As a rule, the mature environment and an already landscaped garden speak in favor of buying a house compared to a new building. However, individual ideas can often be implemented more easily with a new building. However, this sometimes requires a lot more patience, as the time until you move in can take significantly longer, which in turn is associated with high costs. Not only does the rent have to be paid, but also the home loan.
Make optimal use of funding
There are various subsidies available for both builders and home buyers. The first to be mentioned are the promotional loans from the Kreditanstalt für Wiederaufbau (KfW), which can offer major savings on interest costs. The programs at a glance:
Home buyers, in turn, can benefit from subsidies for energy-related renovation measures:
It is also highly recommended to check to what extent the respective state bank offers a funding program. They sometimes provide attractive grants or low-interest loans, particularly for energy-efficient renovations, and there are also many support programs for families.
Save costs when financing construction: These funding programs are available in northern Germany
