Buying your first property is an exciting step — but also one filled with potential pitfalls, especially when you’re buying for investment. Unlike buying a home for yourself, buying for rental or appreciation requires another level of scrutiny.
Before you fall in love with the exposed brick walls and charming Altbau ceilings, make sure you’re asking the right questions.
Here’s a checklist that every first-time buyer should go through before signing on the dotted line:
⸻How Old Are the Windows?
Windows are a critical part of a building’s energy efficiency. If they’re old or single-glazed, your tenants might complain about cold drafts — and your energy certificate (Energieausweis) might be embarrassing.
Newer, double- or triple-glazed windows also reduce noise and help meet modern energy standards.
⸻How Old Is the Heating System?
In Germany, many properties still run on oil or outdated gas heating. With increasing regulations and carbon taxes, this is a big deal.
If the heating system is over 20 years old, factor in a potential replacement — which could run into five figures.
⸻How Old Is the Façade (Especially With Insulation)?
The façade isn’t just cosmetic — it impacts insulation and energy ratings. Ask:
- Has it been insulated?
- When was it last refurbished?
- Is there potential exposure to asbestos (common in buildings from the 60s–80s)?
This can affect renovation costs significantly.
⸻How Old Is the Roof?
A full roof replacement is expensive, especially in multi-family buildings. Check the minutes of the homeowners’ association (WEG-Protokolle) to see if a replacement is being discussed.
A leaky or old roof might not just cost you — it might cost everyone in the building.
⸻What’s in the Reserve Fund (Instandhaltungsrücklage)?
If all of the above elements are old and the reserves are low, expect a Sonderumlage — a special one-time payment from owners to fund major repairs.
Always ask:
- How much is in the reserve fund?
- What major repairs are planned in the next 3–5 years?
- What were the last special payments?
Who Lives in the Building — Owners or Tenants?
This one’s psychological.
If most apartments are owner-occupied, the building tends to be better maintained. People care more when it’s their home.
But if most units are rented out, landlords may be more hands-off, and maintenance can suffer.
Ask for the ownership ratio — this can tell you a lot about the building’s long-term condition and mindset.
⸻Are There Any Legal Disputes or Structural Issues?
Always check with the property management or Verwalter:
- Are there current or past legal disputes in the building?
- Any lawsuits or open claims?
- Any water damage or structural issues reported?
These are often hidden in the Teilungserklärung, Protokolle or house meeting minutes — make sure to read them carefully or get help reviewing them.
⸻How Much Are the Monthly Running Costs (Nebenkosten)?
Aside from the mortgage, the Hausgeld (monthly fees) can vary drastically.
Pay attention to:
- Heating method (central vs. decentralized)
- Insurance
- Waste removal
- Management fees
- Contributions to reserve fund
A high Hausgeld eats into your yield and can scare away future buyers.
⸻BONUS: Questions You Didn’t Think to Ask
- When was the last electrical inspection? (Outdated wiring = expensive.)
- Is the tenant reliable? (For rented properties — check for payment delays.)
- Is there a floor plan that matches the actual space? (Mismatch in sqm = legal headaches.)
- How many units are in the building? (Smaller buildings = bigger share of future costs.)
Final Thoughts
Real estate in Germany can be a powerful path to wealth — but it rewards the prepared. Don’t just trust your gut or fall for pretty interiors. Ask the right questions. Dig into the documents. Talk to the right professionals.
And most importantly — run the numbers.
That’s exactly why tools like Immojourney exist. To help investors like you monitor cash flow, track expenses, and never get blindsided by a broken boiler or unexpected special payment again.
Try Immojourney now — the cash flow and portfolio tool built for German real estate investors.