Properties in need of renovation: What does that actually mean?

Properties in need of renovation are properties that require extensive renovation work due to age, wear and tear, or structural defects. These are often houses or apartments with particular charm and potential, but which do not meet current standards. Anyone deciding to purchase such a property should be aware that, in addition to the purchase price, investment in modernization will also be necessary.

Opportunities when buying: Your individual added value

Buying a property in need of renovation opens up the possibility of designing the property entirely according to your own ideas. Targeted measures can significantly increase the value of the property. In addition, there are often attractive subsidies and tax advantages that make the purchase and renovation even more interesting.

Risks and challenges: What you should pay attention to

Renovation projects bring not only opportunities, but also challenges. Unforeseen costs, structural surprises, and legal requirements can increase the expense. Careful planning and the right financing are crucial to minimizing risks and successfully implementing the project. However, with the right support, these challenges can usually be overcome without any problems.

Our support for your successful real estate purchase

We accompany buyers from the very beginning with personal advice and comprehensive support. Thanks to our cooperation with experienced craftsmen and construction companies, we can provide reliable partners for the renovation. Our financial expert is also available to answer all your questions about financing and ensures a solid foundation for your project.

How Bream Immobilien can help you achieve your goals

With our structured approach, we guide you step by step through the entire purchase and renovation process. We share our experience and give you valuable tips so that you can implement your project safely and efficiently. Customer reviews and reference properties show how successful working with us can be.

A successful renovation project with Bream Immobilien

Properties in need of renovation offer numerous opportunities when approached with the right partner. We are at your side as a trusted real estate agent and support you every step of the way. Together, we ensure that your renovation project is a success.

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Exterior: First impressions count

The exterior of a property plays a decisive role as it gives the first impression to potential buyers. A freshly painted façade and well-maintained gardens can significantly increase the value of the property and attract positive attention. The front door and windows should also be in immaculate condition to ensure aesthetics and security. Small investments in the external appearance can often have a big impact on overall perception and sales success.

Interior: Enhancing the quality of living

The interior of a property is largely responsible for the quality of living and the feel-good factor, which means it has a strong influence on the purchase decision. Freshly painted walls and ceilings create a bright and inviting atmosphere, while new or well-maintained floor coverings significantly improve the overall impression. Modernized lighting ensures pleasant illumination of the rooms and underlines their advantages. Targeted renovation measures in the interior can increase living comfort and significantly enhance the attractiveness of the property.

Kitchen and bathroom

The kitchen and bathroom are often the rooms that attract the most attention when viewing a property and can be the deciding factor in a purchase decision. Modernized, functional and aesthetically pleasing kitchens and bathrooms significantly increase the perceived value of the property. Investing in energy-efficient appliances and sustainable materials not only offers long-term cost benefits, but also appeals to environmentally conscious buyers. A well thought-out renovation of these central rooms can therefore make a significant contribution to the success of the sale.

Cost-benefit analysis

A thorough cost-benefit analysis is essential to determine which renovation and refurbishment measures make sense before selling a property. Not every investment pays off equally; it is therefore important to prioritize measures that offer the highest added value. For example, smaller, inexpensive jobs such as painting walls can often have a greater impact than expensive renovations. Careful budget planning and monitoring will help to keep an eye on investment costs and ensure that the added value achieved exceeds the expenditure.

Professionals or in-house work?

While smaller jobs such as painting walls can often be done by yourself, more complex tasks such as electrical installations or plumbing work usually require professional expertise. Specialists not only ensure high quality and safety, but can also save valuable time. It is important to realistically assess your own manual skills and weigh up when it makes sense to hire professionals in order to avoid defects and additional costs.

If you would like to place the renovation work in professional hands before selling, we at Bream Immobilien in Berlin and Potsdam can establish the necessary contacts. Get in touch with us!

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Accessibility in the house or apartment

Accessibility is a key feature of a property suitable for senior citizens and enables older people to live safely and independently within their own four walls. This includes step-free access, wide doors and corridors as well as easily accessible light switches and sockets. Suitable floor coverings that avoid tripping hazards also make a significant contribution to increasing mobility and safety. A well-thought-out barrier-free design not only makes everyday life easier, but also promotes the independence of residents.

Accessible bathroom

A senior-friendly bathroom is essential for the safety and comfort of older people. Non-slip flooring and level-access showers significantly minimize the risk of falling, while well-positioned grab rails provide additional stability. Seating options in the shower and height-adjustable washbasins make daily hygiene easier and promote independence.

Bedroom without tripping hazards

A senior-friendly bedroom should be designed with comfort and accessibility in mind. Height-adjustable beds make it easier to get in and out of bed, creating greater safety and comfort. Easily accessible cupboards and drawers allow easy access to clothing and personal items without the elderly having to bend or stretch. Adequate lighting, especially nightlights, also helps to prevent accidents at night.

Safety in your own home

Safety in a property suitable for the elderly is of crucial importance and encompasses several aspects. Emergency call systems that can quickly summon help in the event of an accident offer a high level of safety and, not least, reassure relatives. Smoke detectors should also be installed in all relevant areas so that an alarm can be raised in good time in an emergency. Lighting sensors and automatic light sources increase safety in the dark and significantly reduce the risk of falls and accidents.

Environment and infrastructure

A senior-friendly living environment and good infrastructure play a key role in the well-being of older people. Nearby medical care facilities and pharmacies ensure that help is available quickly if needed. Shopping facilities and public transport in the immediate vicinity make everyday life easier and contribute to independence. In addition, community facilities and social amenities promote social contacts and an active life in old age, which is of great importance for mental and physical health.

Bream Immobilien advises you

Bream Immobilien provides comprehensive and competent advice on planning and designing a property suitable for senior citizens. Whether you want to renovate your existing property or sell it and then reorient yourself – we are at your side as your estate agent!

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Why real estate?

Real estate offers robust protection against inflation, as its value tends to rise in line with general price increases, allowing you to preserve the purchasing power of your capital. Unlike other forms of investment such as shares or bonds, which can be more volatile, real estate offers a physical investment that generally retains its value. In addition, rented properties generate regular income through rent, which can also be adjusted for inflation. This combination of value appreciation and ongoing income makes real estate an attractive choice for investors who want to secure their assets for the long term.

How does inflation affect real estate?

Inflation affects real estate in various ways, but mostly positively for the owner. While general price increases reduce the purchasing power of money, the value of real estate usually increases accordingly, which preserves the real value of your investment. Rental income can also be adjusted for inflation, resulting in rising income. As a result, real estate offers double protection: both the value of the asset and the income from it retain their purchasing power.

Risks and challenges

Although real estate can be a stable investment, it is not without risks and challenges. Market volatility and economic fluctuations can lead to changes in value that reduce the expected return. There are also ongoing maintenance and management costs which, if not well managed, can have a significant impact on returns. Careful due diligence and strategic risk management are therefore essential to avoid potential pitfalls and ensure long-term success.

Future prospects

The future prospects for the real estate market remain promising, especially in growing urban areas and up-and-coming regions such as Berlin and Potsdam. Forecasts show that demand for residential and commercial real estate will continue to rise due to urbanization and population growth. Technological progress, for example in the form of smart homes and sustainable construction methods, also offers additional opportunities for value appreciation. Long-term investors can benefit from these trends if they invest strategically and well-informed in the real estate market.

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Why do building interest rates change?

Building interest rates change due to various factors, which are primarily influenced by the monetary policy of central banks such as the European Central Bank (ECB). Changes in the ECB’s key interest rate have a direct impact on the cost of lending to banks, which then pass this on to private customers. Economic indicators such as inflation, the unemployment rate and general economic growth also play a role. Following interest rate cuts by the ECB, which were intended to help combat high inflation, experts are hardly expecting any further major cuts in key interest rates in the coming months; in fact, the opposite is the case. The conditions for building loans will adjust accordingly.

The latest developments in building interest rates

There has been a significant increase in building interest rates over the last 7 days. In particular, interest rates for 10-year fixed rates have risen by 0.33% to an average of 3.69%, the highest level in seven months and the sharpest weekly increase since the global financial crisis 18 years ago. This is due to the planned measures of the expected future German government, which intends to issue additional federal bonds, which will require higher interest rates and thus lead to rising building interest rates. These developments make it all the more important to compare different credit institutions in order to find the best financing offer. Together with our financier, we will help you to find the right financing offer, even in times of rising interest rates.

Influence of rising interest rates on real estate purchases

Rising construction interest rates have a direct impact on the financing options available to homebuyers, as they increase monthly loan installments and therefore make the total cost of a home loan more expensive. This can reduce the affordability of homes, especially for first-time buyers who are reliant on financing larger sums. At the same time, demand for property could fall as fewer people can afford to buy, potentially stabilizing or even lowering property prices. Such market conditions require well thought-out financing strategies and careful planning on the part of buyers.

What does this mean for property sellers?

For property sellers, rising construction interest rates mean that demand for properties may decrease as potential buyers have to shoulder higher financing costs. This can lead to longer selling times and possibly lower selling prices as fewer buyers are willing or able to pay the asking price. It can therefore be beneficial for sellers to start the sales process now, before interest rates rise further and the market potentially cools. A professional valuation and strategic advice can help determine the best time to sell and the best sales strategy.

Bream Immobilien advises you

If you are still hesitating whether now is the right time to sell your property in Berlin or Potsdam, we offer you a non-binding initial consultation. We will show you how you can take advantage of the current market conditions and complete the sale before the market turns negative for sellers.

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But what exactly makes a property energy efficient? In this article, we explain which features and technologies characterize an energy-efficient property and how you can recognize them.

Insulation and thermal insulation materials

Insulation and the choice of the right thermal insulation materials are key elements for the energy efficiency of a property. High-quality insulation materials such as mineral wool, foam and cellulose significantly reduce heat loss and help to lower heating costs. Good insulation not only ensures a pleasant indoor climate in winter, but also protects against excessive heat in summer. By investing in effective thermal insulation, you can save energy costs in the long term and help to reduce CO2 emissions at the same time.

Windows and doors

Windows and doors play a crucial role in the energy efficiency of a property, as they can be potential weak points for heat loss. Modern windows with multi-layered insulating glass and special coatings minimize heat loss and contribute to better heat regulation. Well-insulated doors, preferably with multiple seals, are also essential to prevent energy loss and increase living comfort.

Heating and air conditioning

Efficient heating and air conditioning systems are crucial for reducing a property’s energy consumption and operating costs. Modern heating systems such as heat pumps, underfloor heating and condensing boilers make optimum use of energy and ensure an even, pleasant indoor climate. The latest generation of air conditioning systems are energy-efficient and can be further optimized using smart control systems.

Water heating

Water heating is a significant factor in household energy consumption, which is why efficient systems are particularly important here. Solar thermal systems use solar energy to heat water, which not only reduces energy costs but is also environmentally friendly. Efficient hot water boilers and instantaneous water heaters provide fast, on-demand water heating, avoiding unnecessary energy consumption.

Energy-efficient household appliances

Energy-efficient household appliances are an important part of sustainable living and make a significant contribution to reducing energy consumption. Appliances with energy consumption labels such as A or B are particularly energy-efficient models that save costs and resources in the long term. The selection of such appliances, combined with regular maintenance, ensures optimum function and longevity. 

Would you like a purchase price valuation of your property and have questions about the extent to which improving energy efficiency will increase the purchase price of your property?  Or would you like to search for energy-efficient properties in Berlin or Potsdam with our support?

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Market analysis and economic conditions

A thorough market analysis and understanding of current economic conditions are critical to determining the best time to sell your property. Economic trends such as interest rates, employment rates and economic growth can have a significant impact on the real estate market. Local market conditions such as the supply of comparable properties and their selling prices should also be considered. Gathering and analyzing this data will give you a clearer picture of when demand is highest and the selling price is optimal.

Seasonal fluctuations

Seasonal fluctuations can also have an impact on the real estate market and therefore determine the ideal time to sell. In many regions, properties sell more quickly and at higher prices in spring and summer, as the weather makes it easier to move and the property is more visible. Fall and winter, on the other hand, are good times to prepare the property for sale.

Personal circumstances and life goals

In addition to what is happening on the real estate market, your personal situation should also play a role in your decision. Take into account your professional plans, such as upcoming transfers or career changes that may necessitate a move. Family changes such as the birth of a child, children growing up or retirement can also influence the timing. Some of these situations require a quicker property sale, for example if the capital tied up in the property is needed to purchase a new property in a new place of work. Other situations, such as impending retirement, can be planned for the longer term.

Financial considerations

If you want to sell your property for financial reasons, for example because the maintenance costs exceed your budget, you should aim for a quick sale. If you want to maximize the profit on the sale, value-enhancing measures should be calculated before the sale, which in turn will influence the ideal time for the property sale.

Would you like professional advice on determining the right time to sell your property in Berlin or Potsdam?

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Choosing the right time

Finding the right time to downsize is usually not that easy. It is worth considering your physical health and general lifestyle. Ideally, a move should take place when there are still enough energy reserves and support networks to make the process easier. Seasonal considerations, such as milder weather conditions, can also make the move more relaxed.

Planning and preparation

Thorough planning and preparation are essential to make the move to a smaller home a smooth one. Start by taking stock of your possessions and decide what is really necessary and what can be given away. A well thought out schedule will help break the process down into manageable steps and avoid stress. For a more objective perspective, you can also ask friends or family members for help.

Effective decluttering

Go through room by room and evaluate each item critically: Do you really need it or can it be donated, sold or disposed of? Boxes can help with sorting. Start with the items and rooms that hold the fewest memories and slowly work your way through until you have reached the emotional mementos and photos. Sometimes it can help to hand over cherished items to trusted new hands. If you know that your favorite pieces of furniture have found a new owner who enjoys them as much as you do, the separation will be easier.

Choosing a new home

The choice of a new home should be made carefully, taking into account your current and future needs. Pay attention to accessibility and age-appropriate furnishings that make daily life easier. Also check the location: good public transport connections, shopping facilities and medical care are decisive factors. Finally, you should also consider the social environment – a lively community life can contribute significantly to the quality of life.

If you would like to sell your outgrown property in Charlottenburg, Spandau or Kladow and are looking for a new living solution, we will be happy to help you.

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The development of the key interest rate

In recent months, the ECB has influenced the financial market by adjusting the key interest rate. A key interest rate of 0% in 2016 meant that loans were cheaper than ever before. Since then, there have been regular increases, leading to a peak rate of 4.5 %. In June, the prime rate was cut again for the first time since September 2019 and currently stands at 3.75 %. Nevertheless, loans for property financing have become noticeably more expensive for many buyers in terms of overall costs. As the inflation rate has fallen, no further increases in the key interest rate are expected for the time being. A few days ago, the ECB announced a further interest rate cut of 0.25%, which will come into force in a few days’ time. This is basically a positive development for property buyers. However, at the moment, it is assumed that the interest rate market will stabilise rather than see further interest rate cuts.

Effects on building interest rates

While interest rates on bank deposits develop in a similar way to the prime rate, the development of building interest rates is somewhat different. Building loans have become more expensive since 2022 and have been in a range of around 3 to 4 % since then. In May, a slight increase in interest rates was recorded once again before there was also a minimal drop. As construction interest rates are generally fixed for a longer period, interest rate changes do not have an immediate impact on loans, which generally makes forecasting more difficult.

Action tips for property buyers

The fact that no major changes in construction interest rates are expected can be interpreted in different ways for property buyers. On the one hand, buyers who have found a property and have a suitable financing offer can sign the purchase contract with peace of mind – because there is no need to wait for significantly better conditions. However, for those who are currently unable to afford property financing, the expected sideways movement means that there are no certain prospects for more favourable loans for the time being. If you would like individual advice tailored to your personal financial situation, you will find an experienced expert in our financing partner. Together we will clarify how you can realise your property purchase in Berlin, Potsdam, Gatow, Kladow and Brandenburg.

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The most important documents for property financing

The required documents differ slightly from bank to bank and depend on your personal situation. If you are self-employed, for example, you must provide an insight into business analyses if no salary statements can be submitted. In general, a distinction is made between documents that relate to the buyer’s financial situation and those that provide the bank with information about the property.

Proof of income

Proof of income serves to transparently present your financial situation to the lender and enables them to assess your creditworthiness. Typical proof of income includes payslips, tax statements, pension statements or profit and loss statements for the self-employed. The proof of income gives the lender an insight into your financial stability and ensures that you are able to meet the monthly loan instalments. It is therefore important to collect these documents carefully and submit them in full. If there are factors that reduce your income and influence your financial situation, such as existing loans or leasing contracts, you must also provide documentation for these.

Proof of equity

Proof of equity is an important part of property financing, as it shows the lender that you can finance part of the purchase price from your own funds. This includes, for example, bank statements showing how much equity you have available, as well as savings contracts or securities. By providing proof of equity, you can strengthen your credit rating with the lender and possibly obtain better conditions for the financing. Proof of insurance and savings contracts should also be kept ready and submitted.

Information about the property

This includes the extract from the land register, which provides information about the ownership structure and any encumbrances on the property. Equally relevant is the purchase contract, which regulates the legal framework for the property purchase. In addition, construction plans, energy performance certificates or expert opinions may be further relevant documents relating to the property that must be taken into account when financing. They also give the bank an overview of how much the property is worth.

Tips for obtaining the required documents

In order to efficiently obtain the required documents for property financing, it is advisable to start early and create a checklist with all the necessary documents. In some cases, you need to allow some time between applying for and receiving the documents. If you decide to process your property purchase in Berlin or Brandenburg with our team, we will organise all the necessary documents and ensure that everything runs smoothly.

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