Buying a listed house: These are the advantages and disadvantages

Buy listed house: important facts

Whether half-timbered house, Art Nouveau villa or manor house: In view of such buildings, one can get shining eyes when looking for real estate. In thoughts one plays then through, how over reorganizations the housing requirements of the modern age with the historical charm of the past can be combined.

Apart from the beautiful conceptions there are however straight with older real estates also important topics, which are to be considered - for example with the monument protection. We would like to make you aware of this and show you what to look out for when buying a listed property.

What awaits you in this article:

1. You get background information on the term "monument protection".
2. You get tips for when you want to buy listed houses.
3. You learn what you need to pay attention to renovations.
4. You can get a first overview based on a comparison of the advantages and disadvantages in such a purchase.

What is meant by a listed property?

The historical value of a building decides whether a listed building is declared or not. The criteria for this are regulated in each federal state in the monument protection law. Therein also the public interest is defined more near, which must be present, so that a building is considered due to the meaning of its cultural inheritance as monument.

A high age of a real estate is thus per se still for a long time no warranty for the fact that the house stands also under monument protection. Also a firm time window as for example with cars, which are considered after 30 years officially as old timers, does not exist with the monument protection. By the way, not only classic residential buildings can be monuments.

Typical buildings that are often listed are

• gorgeous buildings such as castles or palaces,
• historic buildings, which are more often also landmarks, for example, city gates, water towers, windmills, churches or chapels,
• old manor houses and half-timbered houses,
• theater houses and barracks areas.

Who wants to get an overview of his home: per state and city there are monument lists from the competent monument protection authority. There you can see which properties are locally under monument protection or which monuments there are in your region at all. Beside architectural monuments there are namely also soil monuments (archaeologically relevant testimonies of earlier life in the soil or in waters) and culture monuments (revealing and by humans created objects of former epochs of mankind history)

For you as potential old real estate buyers is important: If your object is an official "monument protection house", you would commit yourselves with a purchase also to hold it in maintenance. That means in last consequence: They would have to co-ordinate each planned reorganization or modernization with the responsible local monument authority.

That is everything feasible - but evenly an additional expenditure, which one should take into account already with planning additionally. By the way, we have illuminated the difference between renovation and modernization for you in this article.

Buy listed property: These 5 tips we have for you

Even at the time of purchase, there are special points to consider if you want to acquire a listed house. The same applies to the acquisition of a condominium, which is located in a listed building.

With these 5 tips you are well positioned for the purchase of a listed house:

1. Look out for the renovation effort. In Exposés often already find initial indications. Ask but in any case during the on-site visit again explicitly about it.
2. Set the purchase price in proportion. If many renovations have already been carried out in a listed building, the price may also be correspondingly higher. Conversely, if there is still much to do, the object should not be too expensive.
3. Take a listed building surveyor with you. During inspections, you need an expert at your side to get reliable statements about possible renovation costs and regulatory approvals. In our article on property inspection, you get from us even more tips for an optimally used tour.
4. Include the location. When properties are listed, it is easy to forget what always matters when buying: the location and the environment of the property. In our article on micro and macro location, we have summarized the most important criteria for you.
5. Use government subsidies. Inquire before buying necessarily about the possibility of a subsidy on the part of the Kreditanstalt für Wiederaufbau (KfW). Here you can learn, for example, more about what KfW funding would be possible in the field of energy renovation.
6. Profit from the Denkmalschutz-AfA. With a listed property, modernizations are often necessary. These support the legislature with tax depreciation, the "Absetzung für Abnutzung" (AfA). In our related article on the monument AfA you will find the details along with helpful sample calculations.

Important: If it is about economic subsidies and tax benefits, we recommend the consultation of a tax advisor of your confidence.

Refurbish listed house: This is what you need to pay attention to when planning costs

An old building can look to fall in love at first glance. In the truest sense of the word, however, hidden costs may be waiting for you behind the facade in the course of modernization. In short, you should look particularly closely at older houses.

It is best to ask yourself these three important questions before buying, in order to better estimate the future renovation effort:

1. Is there substantial damage to the house, for example, damp spots on the facade or roof trusses?
2. Does the house have mold stains or can you even find damp spots?
3. Is it known whether asbestos or other questionable chemicals were used in walls, paints or varnishes?

In addition, you should check the condition of the heating, water and electrical systems and find out whether any outdated technology is in use here.

As already described, if you want to rebuild, refurbish or renovate a listed house, you have coordination with the relevant monument protection authority ahead of you. That depends primarily on how extensively the monument protection is declared with the real estate.

The monument protection can concern the whole house - or only parts of it. Inquire best before the purchase about it, how high the "degree of protection" is in your concrete case. What exactly is subject to approval, is also regulated differently from state to state and depends on the degree of protection.

As a rule, these plans are subject to approval:

• large extensions and additions, for example, a new attic, the installation of an elevator, a staircase, a state-of-the-art photovoltaic system or satellite dish
• optical embellishments, for example, a new facade or wall color, a new plastering or the change of flooring
• Renovations, for example, the bathroom or energy management or house insulation
• Replacement or repair, for example, of doors, windows, trusses, shutters, half-timbering, wall or ceiling coverings
• new uses, in the form of advertising space or shop windows

Who even plans a complete demolition, gutting or a major new construction in the immediate vicinity of the listed property, should of course in any case talk in advance with the monument protection authority.

Generally applies: Start reorganization measures never without an official permission. A possibly necessary deconstruction can go at the end unnecessarily in the money, in the extreme case threaten even fines. Also plan enough time, as approval procedures can sometimes take a very long time.

Advantages and disadvantages of buying a listed house

A listed property can bring advantages and disadvantages as a project. Below we have highlighted both sides for you.

These advantages can bring a listed building purchase of a property for buyers:

• Aesthetically, historic houses often exude an attractive charm.
• You own a special property of historical significance.
• You benefit in part from a relatively low purchase price.
• You can take advantage of government subsidies for the redevelopment The subsidy is regulated in paragraph § 7i Income Tax Act (EStH) and § 82i Income Tax Implementing Regulation (EStDV).
• You often come easier to a low-interest KfW loan.
• You put on a property that usually increases in value and is profitable in the long term.
• You usually enjoy tax advantages - you can partially deduct the costs of purchase and renovation for tax purposes. Here you can learn more about the requirement for "AfA" (deduction for wear and tear).

These disadvantages can bring a listed building purchase of a property with it:

• There is partly a high need for renovation.
• In part, there may be strict renovation requirements on the part of the local monument protection authority, which must be implemented by you.
• You sometimes have to accept official restrictions on the design of your house.
• It is to plan for a higher maintenance reserve, since you as the owner are obliged to repair.
• If you have to resell the old property after only a few years, you usually have to accept financial losses and sometimes longer approval procedures.

The bottom line: without question, the restoration of a historic building can be a heartfelt project, with which you can fulfill your personal lifelong dream. However, one must also be aware that with the acquisition of a listed property, one also assumes obligations. It is therefore all the more important to obtain detailed advice from experts even before the purchase in order to be able to estimate the future renovation and financial expenses as accurately as possible.