Old and non-energy-efficient buildings have had their day. At least if the EU has its way. If the EU Parliament adopts its planned renovation obligation, many owners in the European Union will be faced with a wave of new building directives. What does the upcoming renovation obligation mean?
One thing is certain: implementing the necessary renovations will be expensive. Many owners are already dreading the costs. Especially homeowners who are not investors, i.e. who live in the property themselves and only have a thin financial cushion, will not be able to manage without financial assistance. Experts see the new guidelines as a greater burden than the government's new heating law.
What energy standard should a property meet?
Older buildings should have an energy efficiency rating of at least E by 2030. By 2033, energy efficiency class D is the next highest target. The EU not only envisages replacing heating systems, but also insulation, replacing old windows and other measures that are part of a complete energy-efficient refurbishment. All buildings are to become climate-neutral by 2050.
What costs are expected?
In order to implement the new building guidelines throughout Germany, the annual investment sum would have to rise to more than 180 billion euros. This currently amounts to around 50 million euros per year. The savings achieved in energy costs sometimes do not compensate for the modernization costs incurred.
Use subsidies
The state helps owners with state funding. KfW offers various funding programs for climate-friendly modernization. The amount of the grants depends on the necessary measures and other factors. Many subsidies must be applied for before construction begins.
However, some banks (such as Umweltbank) now also offer low-interest loans for energy-efficient refurbishment. The measures for which such offers apply depend on the financing partner. A real estate agent can help owners find a suitable offer or an energy consultant in the region.
Avoiding the obligation to restructure - selling instead of restructuring
Not every owner wants to or is able to renovate their home and wonders whether it wouldn't be better to sell the old existing property. Owners who do not fall under the hardship scheme of the new heating law in particular are faced with a difficult decision - both financially and emotionally. Anyone selling their old property will find that the values on the energy performance certificate are also becoming increasingly relevant for buyers and banks.
The demand for properties that are in a poor energy condition is decreasing. If potential buyers are found for the property, the costs of a necessary refurbishment are often factored in. Nevertheless, the energy value is only one of many valuation criteria. An estate agent can professionally determine the value of the property and knows the state of the real estate market in the region. Together they can set an offer price in line with the market.
Do you need support with energy-efficient refurbishment or are you thinking of selling your property? Then contact us. We will be happy to advise you. Expertly and personally.
Notes
For reasons of better readability, the generic masculine is used in this text. Female and other gender identities are explicitly included where this is necessary for the statement.
Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific individual case.
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