ᐅ Renovation of a Condominium Built in 1965: A Worthwhile Investment?
Created on: 19 Apr 2015 21:12
H
hausbau2015H
hausbau201519 Apr 2015 21:12Hello everyone,
My husband and I are planning to buy a condominium for personal use. Here are the key details: about 100 sqm (1,076 sq ft), 1st floor, 4 rooms, kitchen, bathroom, guest toilet, balcony, basement, bicycle storage, laundry room. The building was constructed in 1965, has 6 residential units, each owned by different owners (all identical apartments). It is located in an established residential area with good local amenities and transport connections. So, for us, the location and apartment layout are great.
The building looks well-maintained from the outside, but many things are still in their original condition (electrical system, water supply, heating—though the gas boiler is from 2005, roof). Windows were replaced a few years ago; external insulation is probably not worth it financially. There is a minor moisture issue in the basement, and one wall will need waterproofing soon (an expert report is available). Otherwise, the basement is dry.
We plan to renovate the electrical wiring and bathrooms in our apartment, including replacing the corresponding pipes in the bathroom. And, of course, general renovations.
However, I have some concerns due to the age of the building—it’s already 50 years old, and bigger repairs are gradually becoming necessary.
Is it even sensible to invest in an apartment in a building like this? This might be a bit vague, but maybe you have experience or ideas we should consider.
The apartment plus the mentioned renovations are affordable—buying a new-build apartment here would cost about twice as much (but wouldn’t have such a good layout and location; it would have other features such as an elevator and underground parking). On the other hand, it’s possible that we will face regular special assessments for renovations in the coming years, which could also make the apartment quite expensive.
Are there any experts who can also estimate renovation costs for the roof, water supply, and electrical system? Would that be helpful for me? I don’t even know whether the roof will need repairs tomorrow, in 10 years, or 20 years.
Are there any standard renovation cost benchmarks per sqm?
Or is it better to just save a fixed amount each month for special assessments and leave it at that? We simply cannot afford a new build.
Thank you very much for your suggestions.
My husband and I are planning to buy a condominium for personal use. Here are the key details: about 100 sqm (1,076 sq ft), 1st floor, 4 rooms, kitchen, bathroom, guest toilet, balcony, basement, bicycle storage, laundry room. The building was constructed in 1965, has 6 residential units, each owned by different owners (all identical apartments). It is located in an established residential area with good local amenities and transport connections. So, for us, the location and apartment layout are great.
The building looks well-maintained from the outside, but many things are still in their original condition (electrical system, water supply, heating—though the gas boiler is from 2005, roof). Windows were replaced a few years ago; external insulation is probably not worth it financially. There is a minor moisture issue in the basement, and one wall will need waterproofing soon (an expert report is available). Otherwise, the basement is dry.
We plan to renovate the electrical wiring and bathrooms in our apartment, including replacing the corresponding pipes in the bathroom. And, of course, general renovations.
However, I have some concerns due to the age of the building—it’s already 50 years old, and bigger repairs are gradually becoming necessary.
Is it even sensible to invest in an apartment in a building like this? This might be a bit vague, but maybe you have experience or ideas we should consider.
The apartment plus the mentioned renovations are affordable—buying a new-build apartment here would cost about twice as much (but wouldn’t have such a good layout and location; it would have other features such as an elevator and underground parking). On the other hand, it’s possible that we will face regular special assessments for renovations in the coming years, which could also make the apartment quite expensive.
Are there any experts who can also estimate renovation costs for the roof, water supply, and electrical system? Would that be helpful for me? I don’t even know whether the roof will need repairs tomorrow, in 10 years, or 20 years.
Are there any standard renovation cost benchmarks per sqm?
Or is it better to just save a fixed amount each month for special assessments and leave it at that? We simply cannot afford a new build.
Thank you very much for your suggestions.
H
hausbau201519 Apr 2015 21:18About 15,000 euros. I don’t think that’s too much, but it’s also not bad.
With 6 apartments, that still sounds reasonable. However, it also depends on the development. How much is contributed to the reserve fund per apartment each month? How regularly have renovations been carried out in recent years?
When I bought my property, I requested the minutes of the last owners’ meetings along with the statements for completed renovations.
If, for example, the $15,000 (or equivalent) exists because nothing was spent in the past 5 years, that would be concerning. But if the property is regularly maintained and the $15,000 (or equivalent) serves essentially as a buffer, then that is a good amount.
When I bought my property, I requested the minutes of the last owners’ meetings along with the statements for completed renovations.
If, for example, the $15,000 (or equivalent) exists because nothing was spent in the past 5 years, that would be concerning. But if the property is regularly maintained and the $15,000 (or equivalent) serves essentially as a buffer, then that is a good amount.
H
hausbau201519 Apr 2015 21:33That is a very good question – approximately 200 euros per apartment per year. That’s not much, is it? According to the records, repairs were mostly carried out rather than proactive investments.
That sounds quite low. In our complex (built in 1970), it is 100 euros per month per apartment. This means the housing maintenance fee is relatively high, but on the other hand, there have been no additional charges in the past seven years, even though some extensive work has been carried out.
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