Prices on the real estate market are sometimes developing paradoxically, as a data analysis of real estate offers in Germany shows.
According to an evaluation of a bank, new condominiums in the medium price range cost up to 3.800 euros per square meter more. In some regions, however, old buildings are more expensive.
Postbank, a branch of Deutsche Bank AG, together with the Hamburgisches Weltwirtschaftsinstitut gGmbH (HWWI) evaluated the real estate offers in 401 independent cities and districts and published the results in its so-called "Wohnatlas 2020". According to the report, especially in parts of Saxony and North Rhine-Westphalia, as well as in the Munich region, new buildings (built between 2017 and 2019) are significantly more expensive than existing apartments. By far the greatest price differences are seen in the district of Miesbach.
There, a mid-priced condo costs 5 used.600 euros per square meter and as new construction just under 9.400 euros. With a surface of 70 square meters the price difference amounts without additional expenses thus to more than 263.000 euros. In the upper price segment, according to the bank, the premium is even a good 452.000 euros.
New buildings are lacking in many regions
"In many areas, the most desirable locations have long been built out. Who wants to live here, will hardly find a new building object. Then the maintained old building makes the race", determined the financial house. This obviously has an impact on prices, as "in the districts of Leer and Nordfriesland, existing buildings are on average even more expensive than new buildings".
In the area of the high-priced real estates in eight districts for the comfortable old building higher prices would be due than for the new building object: Aurich, Wittmund, empty, Rostock, Vechta, Schweinfurt, Cloppenburg and Freising.
Relatively small price differences between new and used properties exist in many rural areas.
Purchase recommendations
On the question of whether a newer or an older property is the better choice, a Postbank expert stresses: "Small price premiums for new buildings should at least be considered by buyers. The advantages can save money: modern building services, higher energy efficiency and warranty claims in the event of defects. Those who opt for a new building are usually spared repairs for a few years."
Risks would stand opposite that. If only construction plans and drawings were available before the purchase, the feeling of space would be more difficult to assess than in an old building that can be inspected. Another challenge cited is that any construction project costs time and nerves and is far more complex than buying a used property.
In order to avoid possible surprises in the case of old buildings due to hidden defects, it is recommended that experts or surveyors be consulted.
Home financing by life insurance
By the way, the insurance industry not only offers solutions such as buildings and contents insurance to protect belongings such as your own property and contents in line with your needs. In addition, a life insurance policy can also be used to secure a mortgage loan in the event that the main earner registered as the insured person dies before the loan has been repaid. This protects survivors, as the house would be paid off by such coverage after the death of the main payer.
And also the house financing itself is possible through life insurance. Last year alone, the volume of real estate loans paid out by life insurers increased by almost six percent to over 8.9 billion euros compared to the previous year, according to the German Insurance Association e.V. (GDV).
According to GDV, one advantage of real estate financing via a life insurance policy is: "While most banks primarily offer loans with a term of up to 15 years, insurers also grant loans with a fixed interest rate of 20 or even 30 years without any problems." This is especially in times of low mortgage rates an important plus point for cost-efficient planning.