Buying heritage properties in Karlsruhe

Monument protection act and funding for properties in Karlsruhe

All heritage properties in Baden-Württemberg are subject to the monument protection act, known as dschg bw. This act regulates the obligations and procedures for handling listed buildings. For example, section 6 of the dschg bw requires all property owners to preserve and properly maintain their protected buildings. The state office for monument preservation in Baden-Württemberg supports owners of listed properties with heritage funding under certain conditions. Depending on the type of renovation work and the classification of the property under monument protection, these subsidies can cover anywhere from 20 up to 100 percent of the total expenses.
Find your heritage properties in the city of Karlsruhe for any type of commercial use with us, such as:

• Gastronomy rental Karlsruhe

• Commercial space Karlsruhe

Heritage properties: tax advantages through special depreciation

Heritage properties are unique and captivate with their very special charm. But if you buy these investment properties in Karlsruhe, the listed buildings must also be economically viable. To encourage investors to preserve cultural monuments, the tax office grants tax benefits on the purchase price. You can deduct this over 40 years at 2.5% of the purchase price per year. If you take out a mortgage to buy a heritage property in Karlsruhe, you can also deduct the loan interest on your tax return. Depending on the type of use, the following special depreciations are permitted—generally linear depreciations for acquisitions (afa) of modernization costs or future maintenance expenses in full for heritage properties:

• § 7i EstG: deductible for rental use – 9% for eight years and 7% for four years

• § 10f EstG: deductible for owner-occupation – 9% for ten years

• § 10g EstG: deductible for land or cultural monuments – 9% for ten years

• § 11b EstG: maintenance expenses with linear depreciation over 2–5 years

Disadvantages when buying listed properties

One challenge when purchasing a heritage-listed property is that all structural changes must first be approved by the responsible monument protection authority in Karlsruhe. This applies to a new roof covering just as much as to changes to the façade, which may include something as simple as a change of color. The choice of construction materials is also restricted during renovation, which can make improving the building’s energy efficiency more difficult. To carry out renovation work yourself, you must provide proof of relevant qualifications. In addition, older buildings naturally incur higher maintenance costs than new constructions.

Advantages when buying heritage properties

A listed property offers far more advantages than disadvantages. Depending on its condition, the purchase price of a heritage property is often significantly lower than real estate prices in Karlsruhe for newer commercial buildings, which typically offsets the higher renovation costs. Funding programs and tax depreciations for listed properties reduce the tax burden for both private and institutional investors for many years and should therefore be considered part of the overall return. In addition, beautifully renovated apartments in historic buildings are a timeless investment, as demand from tenants for such properties is consistently high. With every modernization measure, not only does the tax savings increase, but so does the value of the listed property. Various funding programs also facilitate future renovation work and improvements in energy efficiency. This makes a carefully selected heritage property an excellent investment.

Buying heritage properties safely with commercial broker Engel & Völkers

Our commercial brokers in Karlsruhe are highly experienced with heritage properties and monument protection. Thanks to our professional commercial real estate valuation in Karlsruhe, you will know the condition of the listed property even before purchase, as well as which renovation measures are required. A solid building structure is essential to renovate a listed property profitably and thus view it as a lucrative investment in Karlsruhe. Our strong connections with the monument protection authority and our many years of experience help clarify planned measures, legal requirements, and associated costs in advance. In addition to the purchase price, the renovation costs—depending on the property and its condition—also determine the success of heritage properties as an investment in Karlsruhe.

Get in touch with our commercial brokers for Karlsruhe and the surrounding area as well as for Pforzheim.