
Listed building, new build or existing property?
Three routes into property investment, three different logics. Which strategy suits which stage of life.
Strategy first, then the property
Buying an investment property means choosing not just a flat but a strategy. Listed buildings, new builds and existing properties differ markedly in tax treatment, economics and effort.
Listed building
Architecture with character and special tax treatment of renovation costs under § 7i EStG (Income Tax Act). Of interest above all to investors with higher incomes and a long investment horizon who value substance. An experienced developer and a realistic share of renovation costs are essential.
New build
Predictable quality, modern technology and little maintenance in the first years. New builds benefit from higher depreciation rates and, under certain conditions, special depreciation. A new build suits owner-occupiers as well as strategic investors.
Existing property
Often the better, established locations and immediate rental income. In return, it calls for a close look at condition, reserves and upcoming works. Those who check carefully will find solid value in existing property.
What decides in the end
The right choice is determined not by the market but by your situation: income, equity, time horizon and goals. Have tax questions reviewed by your tax adviser. Manfred Braun will gladly work through the options with you openly.
This article provides a general overview and does not replace legal, tax or investment advice.
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