Existing Property (Bestandsimmobilie)
Pre-owned properties and what to consider
Existing property (Bestandsimmobilie or Altbau) refers to previously occupied buildings, as opposed to new construction. These properties often offer better value and established neighborhoods but come with different tax treatment.
Advantages of Existing Properties
- Lower price per m²: Typically 15-20% cheaper than comparable new construction
- Higher initial rental yield: Lower purchase price with similar rents
- Established location: Proven neighborhood with mature infrastructure
- Character and charm: Often feature better construction quality, higher ceilings, solid walls
- Immediate inspection: See exactly what you're buying (no construction risk)
Disadvantages vs. New Construction
- Lower AfA rate: Typically 2% depreciation for older buildings, compared to 3% base rate (+ up to 5% Sonder-AfA) for qualifying new construction
- Higher maintenance: Older buildings need more repairs and updates
- Lower energy efficiency: Higher heating costs unless renovated
- Hidden issues: Potential for undiscovered problems (pipes, electrical, asbestos)
Real Example: Investment Comparison
Existing Property (1990s)
- Purchase price: €450,000
- Rent: €1,800/month
- Gross yield: 4.8%
- AfA: €7,200/year (2%)
- Maintenance: €6,750/year (1.5%)
New Construction (2024)
- Purchase price: €520,000
- Rent: €1,900/month
- Gross yield: 4.4%
- AfA: €36,400/year (8% = 5%+3% for first 4 years)
- Maintenance: €2,600/year (0.5%)
When to Choose Existing Properties
Existing properties make sense if you:
• Want immediate cashflow over tax benefits
• Prefer established neighborhoods
• Can evaluate and renovate properties
• Are buying in a lower tax bracket (where AfA difference matters less)
Age Categories
- Neubau — completed after Dec 31, 2022: 3% standard AfA; eligible for Sonder-AfA (8% combined in years 1–4)
- Bestandsimmobilie (completed before 2023): Standard 2% AfA over 50 years
- Altbau (50-100 years): Pre-war construction, character buildings, 2% AfA
- Denkmalschutz (100+ years): Protected monuments with special tax benefits
Related Terms
New Construction(Neubau)
New construction (Neubau) refers to properties built recently. They qualify for Sonder-AfA tax benefits and typically have lower maintenance costs but higher purchase prices.
Operating Costs(Bewirtschaftungskosten)
Operating costs (Bewirtschaftungskosten) include property management, maintenance, insurance, property tax, and utilities. Typically 20-30% of rental income.