According to a survey by the opinion research institute YouGov, around 29 percent of the German population live in their own home. The survey was commissioned by the German Real Estate Association IVD. In addition to many of the advantages and conveniences that homeowners have, the IVD points out that prospective buyers should find out in advance about the regular costs that will be incurred. After all, the loan for the house is a cost center, but maintenance and upkeep costs must also be factored in.
The IVD series "The road to home ownership" provides information on the advantages and challenges of buying a home. Among other things, the series explains what maintenance costs homeowners can expect and what is meant by the term "maintenance. Homeowners often use the term "operating costs" as a synonym for maintenance costs. These include all costs for services and expenses, such as fees for water supply or waste disposal, as well as electricity and heating costs or the costs for the chimney sweep and others. Property tax is also included in the maintenance costs. This is not paid monthly, but once a year.
Depending on the age and condition of the property, future property owners must also expect maintenance and repair costs. Whether due to repairs, pending maintenance of technical systems or the building fabric, homeowners must expect recurring costs. Since it is not possible to determine the exact amount of these cost items, there are three methods that can be used to estimate them. While one method estimates possible expenses based on the age of the property, the "Peters' formula" uses production costs as a reference for the estimate. A lump-sum calculation for possible expenses is also possible. Here, it is common to calculate one euro per square meter as a monthly reserve.
Source: IVD
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