Existing Property (Bestandsimmobilie)
Pre-owned properties and what to consider
3 min readUpdated December 2024
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
- Standard AfA only: 2% depreciation vs. 7% for 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: €31,850/year (7% for 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 (0-5 years): Eligible for Sonder-AfA
- Bestandsimmobilie (5-50 years): Most common, standard 2% AfA
- Altbau (50-100 years): Pre-war construction, character buildings
- Denkmalschutz (100+ years): Protected monuments with special tax benefits