Maintaining the value of a property through upkeep

Maintaining a property is not just about preserving its residential value, but also its market value. Therefore, experts recommend not postponing repairs. By doing so, owners only risk incurring higher costs later when repairing damage. For example, if moisture penetrates the insulation through a leaking roof, it can lead to mold and inadequate insulation. It goes without saying that the costs for repairing the damage will then be higher than if only the roof had needed fixing.

Regular inspections

Real estate professionals recommend conducting property inspections every two to three years. These inspections should be carried out by a qualified professional every five to ten years, as damage can sometimes be virtually undetectable to the untrained eye. Technical systems, in particular, should be checked by a professional at shorter intervals.

Build up reserves

According to experts, property owners should also set aside funds for maintenance. After all, maintenance costs will inevitably arise at some point. Real estate professionals therefore recommend setting aside between 7 and 12 euros per square meter per year, depending on the building's age. As a general rule, the older the property, the higher the maintenance costs.

Tax deductible

Homeowners can claim back a portion of their maintenance costs – known as upkeep expenses – through their taxes. In Germany, all expenses related to the proper maintenance of a property are tax-deductible. Examples include costs for roof repairs, thermal insulation, facade renovations, installation of energy-efficient systems, heating system upgrades, and bathroom renovations. Twenty percent of maintenance costs, up to a maximum of €6,000, are eligible. This can result in tax savings of up to €1,200 annually. However, only labor and travel costs are considered; material costs are not included.

Would you like to know how maintenance measures affect the value of your property? Contact us now. We'd be happy to advise you.

No results found:

https://ivd.net/2021/04/so-viel-kosten-unterhalt-und-instandhaltung-fuer-ein-haus/

https://www.handelsblatt.com/finanzen/maerkte/anlegerakademie/immobilien-haeufig-werden-die-instandhaltungskosten-unterschaetzt/4371782-3.html?ticket=ST-13055272-xgGc2CGiUgNPtKiXyRHo-ap4

https://www.esslinger-zeitung.de/inhalt.immobilien-was-die-instandhaltung-eines-hauses-mit-sich-bringt.6a22aac1-17d4-4369-bcdb-b8cb965f6a1e.html

Notes

For the sake of readability, this text uses the generic masculine form. Female and other gender identities are explicitly included where relevant to the statement.

Legal notice: This article does not constitute tax or legal advice for any specific case. Please consult a lawyer and/or tax advisor to clarify the facts of your individual situation.

Photo: © urfingus/Depositphotos.com