ᐅ Buying a house instead of building? Energy performance certificate? Renovation? Heating system?
Created on: 23 Apr 2009 16:31
C
CmajereHello,
As some of you might recall, I asked a few questions about house construction here some time ago.
Today, I read an article in the Financial Times stating that the real estate market sharply declined in the first quarter, meaning prices are dropping significantly, and homeowners who hoped for an increase in value are now putting their houses on the market. Consequently, prices are moving in a downward spiral from which one can actually benefit.
I also have a few questions regarding this.
If someone sells such a house, is it now mandatory to have an energy performance certificate?
From which year of construction is a property considered interesting, meaning it would require minimal renovation? I have seen some buildings labeled as “renovated in 2006,” but I assume that term can be quite flexible, right?
Which type of heating system should be preferred? I found houses with oil or gas central heating (I guess oil is the worst choice?).
I hope this is the right place for these questions.
Best regards
As some of you might recall, I asked a few questions about house construction here some time ago.
Today, I read an article in the Financial Times stating that the real estate market sharply declined in the first quarter, meaning prices are dropping significantly, and homeowners who hoped for an increase in value are now putting their houses on the market. Consequently, prices are moving in a downward spiral from which one can actually benefit.
I also have a few questions regarding this.
If someone sells such a house, is it now mandatory to have an energy performance certificate?
From which year of construction is a property considered interesting, meaning it would require minimal renovation? I have seen some buildings labeled as “renovated in 2006,” but I assume that term can be quite flexible, right?
Which type of heating system should be preferred? I found houses with oil or gas central heating (I guess oil is the worst choice?).
I hope this is the right place for these questions.
Best regards
Hello Cmajere,
This is quite a complex and partly confusing topic, as there are many different deadlines depending on the type of property by which an energy certificate must be available. Additionally, energy certificates are divided into consumption-based and demand-based certificates. Generally, the energy certificate must be made accessible to future tenants and/or buyers of an apartment or property. That means they must be allowed to review it, but the certificate does not have to be handed over to them.
I will try to present the whole topic as clearly as possible:
Since when is the certificate mandatory?
For new residential buildings since October 1, 2007
For older residential buildings (building application submitted by December 31, 1965) since July 1, 2008
For older residential buildings (building application submitted from January 1, 1966) since January 1, 2009
For non-residential buildings since July 1, 2009
Which type of energy certificate is mandatory?
For older buildings (already completed buildings), there was a choice between consumption-based and demand-based certificates until September 30, 2008.
Since October 1, 2008, for older buildings with fewer than 5 residential units and with building applications submitted before November 1, 1977, the demand-based certificate is mandatory unless the building has been renovated afterwards to at least meet the thermal insulation regulations (WSV) of 1977. In that case, a consumption-based certificate is also permitted.
For residential buildings with 5 or more residential units, the choice between consumption-based and demand-based certificates continues to apply.
What is the difference between the certificates?
The consumption-based certificate shows only the average energy consumption of the last three heating seasons of an apartment or building. However, it does not allow a meaningful comparison with other apartments or houses. Moreover, it can be easily manipulated or distorted by entering incorrect baseline values (see energy certificates found on the internet).
The demand-based certificate is prepared by a specialist based on the actual building components present (insulation thicknesses, etc.) and considering the existing technical systems (heating, hot water supply, etc.). Thermal bridges and much more can also be taken into account. Additionally, improvement suggestions for reducing energy demand can be included. This certificate therefore provides an objective way to compare energy demand with other apartments or buildings.
For these reasons, as a tenant or buyer, I would always insist on a demand-based energy certificate if possible.
Any type of heating system—whether oil, gas, heat pump, or wood—has its advantages and disadvantages. The demand-based certificate also reflects the type of heating system, making comparison possible here as well.
Residential building renovated in 2006?
If it is a single-family house (i.e., fewer than 5 residential units) and the building application was submitted before November 1, 1977, the question arises whether it has been brought at least up to the standard of the WSV 1977 by renovation. This must be proven with appropriate documentation.
If yes, then legally, a consumption-based certificate is sufficient.
If no, then the demand-based certificate is mandatory.
If the building application for the single-family house was submitted after November 1, 1977, a consumption-based certificate is legally sufficient.
I hope this helps to clarify the matter somewhat.
Best regards,
Danton
Engineering and Planning Office
Dipl.-Ing. Thomas Brandenburg
Consulting Engineer and Building Expert
Insurance Specialist (Construction Contract)
This is quite a complex and partly confusing topic, as there are many different deadlines depending on the type of property by which an energy certificate must be available. Additionally, energy certificates are divided into consumption-based and demand-based certificates. Generally, the energy certificate must be made accessible to future tenants and/or buyers of an apartment or property. That means they must be allowed to review it, but the certificate does not have to be handed over to them.
I will try to present the whole topic as clearly as possible:
Since when is the certificate mandatory?
For new residential buildings since October 1, 2007
For older residential buildings (building application submitted by December 31, 1965) since July 1, 2008
For older residential buildings (building application submitted from January 1, 1966) since January 1, 2009
For non-residential buildings since July 1, 2009
Which type of energy certificate is mandatory?
For older buildings (already completed buildings), there was a choice between consumption-based and demand-based certificates until September 30, 2008.
Since October 1, 2008, for older buildings with fewer than 5 residential units and with building applications submitted before November 1, 1977, the demand-based certificate is mandatory unless the building has been renovated afterwards to at least meet the thermal insulation regulations (WSV) of 1977. In that case, a consumption-based certificate is also permitted.
For residential buildings with 5 or more residential units, the choice between consumption-based and demand-based certificates continues to apply.
What is the difference between the certificates?
The consumption-based certificate shows only the average energy consumption of the last three heating seasons of an apartment or building. However, it does not allow a meaningful comparison with other apartments or houses. Moreover, it can be easily manipulated or distorted by entering incorrect baseline values (see energy certificates found on the internet).
The demand-based certificate is prepared by a specialist based on the actual building components present (insulation thicknesses, etc.) and considering the existing technical systems (heating, hot water supply, etc.). Thermal bridges and much more can also be taken into account. Additionally, improvement suggestions for reducing energy demand can be included. This certificate therefore provides an objective way to compare energy demand with other apartments or buildings.
For these reasons, as a tenant or buyer, I would always insist on a demand-based energy certificate if possible.
Any type of heating system—whether oil, gas, heat pump, or wood—has its advantages and disadvantages. The demand-based certificate also reflects the type of heating system, making comparison possible here as well.
Residential building renovated in 2006?
If it is a single-family house (i.e., fewer than 5 residential units) and the building application was submitted before November 1, 1977, the question arises whether it has been brought at least up to the standard of the WSV 1977 by renovation. This must be proven with appropriate documentation.
If yes, then legally, a consumption-based certificate is sufficient.
If no, then the demand-based certificate is mandatory.
If the building application for the single-family house was submitted after November 1, 1977, a consumption-based certificate is legally sufficient.
I hope this helps to clarify the matter somewhat.
Best regards,
Danton
Engineering and Planning Office
Dipl.-Ing. Thomas Brandenburg
Consulting Engineer and Building Expert
Insurance Specialist (Construction Contract)
Property prices have certainly decreased, but I believe it is an exaggeration to say that prices for truly good properties (location, construction condition, etc.) are crashing. This only applies to distress sales, which are not the norm. Those who have some time can wait and are not necessarily selling today.
S
Somalitiger29 May 2009 09:19Hi,
we are also considering whether to build new or buy a finished house.
What puts me off about new construction are all the unclear additional costs. For example, there’s the garden (around 10,000 euros or so?), utilities, maybe the foundation slab, and suddenly you’re out another 50,000 euros.
On the other hand, it’s often hard to find a nice finished house. Or does it make more sense to buy something and then renovate it a bit? We’re looking at properties up to about 10 years old.
we are also considering whether to build new or buy a finished house.
What puts me off about new construction are all the unclear additional costs. For example, there’s the garden (around 10,000 euros or so?), utilities, maybe the foundation slab, and suddenly you’re out another 50,000 euros.
On the other hand, it’s often hard to find a nice finished house. Or does it make more sense to buy something and then renovate it a bit? We’re looking at properties up to about 10 years old.
At around 10 years of age, it will become difficult to find properties, as most listings for built houses are for buildings 25 years old or more.
Additional costs need to be analyzed very carefully, especially what has been specified in the contract. The most significant expenses are the fees for the notary and property transfer tax. Surveying costs, soil assessments, and connections to the municipal network (gas/electricity, depending on the location) should also be considered.
Then, of course, there is the garden landscaping. In my case, I prefer a full lawn and consider that sufficient ^^, which is relatively inexpensive compared to the other costs.
Best regards
Additional costs need to be analyzed very carefully, especially what has been specified in the contract. The most significant expenses are the fees for the notary and property transfer tax. Surveying costs, soil assessments, and connections to the municipal network (gas/electricity, depending on the location) should also be considered.
Then, of course, there is the garden landscaping. In my case, I prefer a full lawn and consider that sufficient ^^, which is relatively inexpensive compared to the other costs.
Best regards
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