What is Renovation cost in East Germany

[iwico]

Hi

I am thinking to buy a big house in East Germany (maybe in Lapzig or other East German city or town. I will think buy it from Auction. I buy this house is for my-self living in (maybe part let out).

I saw some big house house in East German cities in auction are cheap, about 10000 Euros (have about 10 flats but in very poor condition, need full renovation).

Could someone tell me how much will cost to renovation a big house in East Germany city or town (for example charge whole roof, change all windows, paint outside wall, repair staircase). If possible cound you give cost for every job.

Thanks

 

[iwico]

None can help me for the renovation cost?

Hi

Some one told me: In UK, renovate a new roof is cost abot £30 per square feet? (or meet).

Is it ture? Hope someone know this.

Regars

 

[berlinportfolio]

Renovation cost in Germany

The question sounds a bit like "How long is a piece of string". If you buy a totally run down property you have to calculate ca. 600 Euro per sqm to have a turn key renovation of the apartments. Then you have to see what needs to be done to the roof: Is it tile, felt of a mix. The cost vary significantly. If is has been bad for a long period, does the timber need (part) replacing. I could go on through all parts of the building but you still had no answer. So it depends!
On the other side there are subsidies for insulation, new windows and enrgy efficient heating.
When you found something you like there is no way to get around a detailed inspection and costing. This will cost money as well but money spent well if it prevents you from an adventure with almost guaranteed desaster at the end.

Uwe Falkenberg
Local Expert for the German Property Market
Berlin Portfolio Ltd.

 

[Lewis]

I have posted on several occassions regarding the pros and cons of using auctions. Gone are the days when a complete amateur could walk in to the German auctions and be confident they have snapped a bargain.

Most of these properties are there for a reason - they are problem properties or problem areas.

I have purchased and will continue to do so but I do not purchase without the advice of my German partners. BE VERY CAREFUL if you are tempted to go ahead without this sort of local and specialized knowledge.

In many cases the prices are approaching and surpassing what you would pay from the estate agents windows.

German workmen are invariably top craftsmen and will expect to be paid as such. Renovations will probably be first class and the bill for it will reflect this.

Enter into these purchases and renovations with your eyes open. You can lose your shirt. If these properties were considered, "Good investments" Don't you think your German counterpart would be snapping them up?

Do you think the Germans are niaive, stupid, or less shrewd than yourself? Or - are they not purchasing everything under the gavel because they have a clearer view of their own market than you might have?

 

[iwico]

More questions

Hi

You said there maybe a "problems property", what is this meanings?

Does properties have legal problem? or is a property be damaged too bad?

If a property has a hidden legal problem, auction house should take responsible.

If a property's problem is because it's condition so bad, there must be a price to repair it. Are you try to tell me a property cannot be repaired what so ever?

If as you said the property is in worry area, what you mean? A crimal rate high area? or no go zone?

 

[erikko]

sometimes its good to buy a new house because it assures you that you need not to renovate it and you will start from scratch decorating your house

 

[Lewis]

Hi

You said there maybe a "problems property", what is this meanings?

Does properties have legal problem? or is a property be damaged too bad?



The problems could be anything from contaminated ground (We found one with the possibility of depleted uranium being present!) It could be asbestos (very expensive and time consuming to get rid of it) - A word of warning here don't be tempted like some foreigners have been to just dump the asbestos as they might be able to in their own countries - YOU WILL go to prison and you almost certainly will be caught.
Flood damage/Damp problems are a real problem in an area with such severe winters. Subsidence. Fire. Right of way, - the same sort of problems you may encounter elsewhere in the world.



If a property has a hidden legal problem, auction house should take responsible.

If a property's problem is because it's condition so bad, there must be a price to repair it. Are you try to tell me a property cannot be repaired what so ever?




No - Any property is repairable if you have the money, time and desire to do so.
As an investor would you want to buy a property at auction for 10,000 Euros, need to spend 100,000 Euros to renovate/repair it, spend six months of your life doing this and have the headache of all the beauraucracy to contend with or would you rather buy a comparable property for less than 110,000 Euros from an agent in the local town, own the property in less than 3 months and have most of the red-tape taken care of for you by those paid to do so?
If the property is for your own use and not an investment fine but as an investor the first route does not make sense.



If as you said the property is in worry area, what you mean? A crimal rate high area? or no go zone?

Very little of Germany would fall into the high crime rate bracket when compared to most other areas of the world.
As an investor you should be looking to purchase in the very best and desirable areas you can afford not just buying because a property is cheap! Remember - exit strategy!
In the old east the communists gave little thought to where they built. A beautiful old castle could find itself surrounded by railway lines and factories and no - one cared.
A lovely terrace of 1800'S houses would have a small factory joined to the house in the 1950's - no-one cared.
A beautiful old church would have plattenbau apartments built next to them - who cared - no-one.
Take a look - A CLOSE LOOK at the surrounding areas of some of these properties in the auctions you will see exactly what I mean.


Please note - I am categorically not saying NEVER BUY AT THE AUCTIONS. I am merely pointing out the potential for losing a lot of money and time if you get it worng. I have bought at these auctions and will carry on doing so - for the right property. When I attend these auctions I amazed by the number of (Usually British wannabees who have no idea what they are doing. They leave their brains on the ferry or at Gatwick and far too often get carried away into buying a pile of expensive junk. There are now unscrupulous agents running bus trips to these auctions and filling these people with crazy expectations.

I will ask this question again. DO YOU REALLY THINK IF IT WAS SO EASY TO MAKE MONEY FROM THESE AUCTIONS THE GERMANS THEMSELVES WOULD NOT BE BUYING EVERYTHING THAT COMES UP IN THE AUCTION HOUSES? Some of these properties have already been through two or three auctions and not sold or some amateur has realized, too late, that his investment was not an investment after all and has put it back into the auctions in the hope of finding another fool like himself. I have been doing these auctions for nearly four years and I see the same properties time and time again - don't be fooled. I ALSO SEE THE SAME FOOLS TIME AND TIME AGAIN!


I'm lucky, I have a little knowledge but I also have vastly experienced German partners who advise me - if they tell me to walk away I listen.

I sincerely hope this helps and gets you to realize extreme caution is a must. Amateurs should not be playing Russian roulette with their money.

Good luck