Purchasing a property in need of renovation can be an attractive option, but it also carries risks. To make an informed decision, it’s important to understand the lifespan of various building components, potential renovation costs, and possible value increases. The lifespan of different building components and their associated costs play a central role. A thorough understanding of these aspects is advisable to sustainably secure the property’s value and avoid financial surprises.

What You Should Pay Attention to Before Buying

Before buying a property in need of renovation, it’s crucial to conduct a thorough inventory. Start with an inspection of the property, ideally accompanied by an experienced building expert. Pay particular attention to the condition of the load-bearing structures, the roof, the facade, and technical systems such as heating, electrical, and plumbing. These elements can represent the largest cost factors in a renovation. Request documents on the building’s history and any renovations already carried out. For multi-family houses, you should also inquire about the amount in the renovation fund.

Be aware that interventions in the load-bearing structure are associated with great effort; removing walls or adding openings may not be possible, so work with the existing building structure.

Consider the legal circumstances: to what extent is renovation possible? Check the land register extracts for easements or building restrictions and inform yourself about any requirements from the municipality or protection status by heritage conservation. For larger renovation projects, you should pay special attention to access and whether unobstructed access to the building is possible.

Ultimately, the year of construction of the property can provide information about the risk of asbestos contamination. Buildings constructed before 1990 could contain asbestos-containing materials. Furthermore, it should be checked whether the property is listed in the cadaster of contaminated sites. This cadaster provides information about possible soil or groundwater contamination. Both factors can have significant impacts on renovation costs and should therefore be considered early on.

Lastly, you should make a realistic assessment of the total costs, which includes not only the purchase price but also all renovation expenses and possible unforeseen costs. Only then can you judge whether the project makes economic sense and fits your financial capabilities. Careful preparation and analysis before purchase can help you avoid nasty surprises and maximize the chances of a successful renovation.

Lifespan and Renovation Cycles

The average total lifespan of a property is typically between 80 and 100 years. Moreover, this period can be significantly extended through regular maintenance and modernization. Some buildings even survive several centuries when properly cared for and continuously adapted to modern standards. Generally, it should be noted that the total lifespan of a property depends on various factors, such as:

• Construction quality and materials used
• Regular maintenance and upkeep
• Environmental influences and climatic conditions
• Intensity and type of use

Various building components and technical systems have different lifespans and must be renewed or renovated at regular intervals. These periods are referred to as renovation cycles. A typical renovation cycle for a single-family house in Switzerland is about 25 to 30 years. During this period, major renovation work that goes beyond normal maintenance usually occurs.

It’s important to understand that not all building components need to be renovated simultaneously. Static elements typically have the longest lifespan and require only minimal maintenance when handled correctly, which is why these are also the most cost-intensive adaptations. Visible elements exposed to weathering, such as paint or coverings, need to be renewed most frequently. Here’s an overview of the average life expectancies of important building components:

It should be noted that these figures are guidelines and can vary depending on weather conditions, quality of materials, intensity of use, and maintenance.

Investment Costs & Benefits

The costs for renovations can be considerable, depending on the depth of intervention, and should be included in future financial planning. A renovation can include both value-preserving and value-enhancing structural measures, making it difficult to give an exact estimate of the investment volume. As a rule of thumb, about 1% to 1.5% of the building’s value should be set aside annually for maintenance and renovations. This is typically also considered by banks when granting loans and is factored into the affordability calculation. Specifically, the costs for individual measures can look as follows:

• Facade renovation: 60,000 to 120,000 francs
• Roof renovation: 40,000 to 80,000 francs
• Window replacement: 30,000 to 50,000 francs
• Heating replacement: 25,000 to 50,000 francs
• Bathroom renovation: 25,000 to 50,000 francs

These figures are guidelines and can vary greatly depending on the size and condition of the property as well as the chosen quality of materials.

While property renovation means effort for the owner, careful planning can lead to multiple benefits after the work is completed. For example, it’s possible to reduce operating costs, increase the building’s value in the long term, and enjoy tax advantages through deductions. According to tax law (DBG; StHG), maintenance costs for privately owned properties are tax-deductible (Art. 32 Para. 2 DBG; Art. 9 Para. 3 STHG).

For this purpose, it’s important to correctly document the expenses and measures taken so that they can be correctly presented to the tax authorities and in the event of a later property sale.

Energy-Efficient Renovations

Energy efficiency and sustainability play an increasingly important role in real estate, not only from an ecological perspective but also in terms of financing and value retention. In Switzerland, there are various standards and certificates that assess the energy efficiency and sustainability of buildings. The best-known include Minergie, the Building Energy Certificate of the Cantons (GEAK), and the Swiss Sustainable Building Standard (SNBS).

These certifications can be advantageous when selling or obtaining external financing. Some banks offer special environmental loans with preferential conditions for energy-efficient properties. For example, one can benefit from special conditions with a Minergie certificate, a GEAK certificate, or when implementing certain energy-efficient measures.

Certification is not mandatory in any case, and renovation can be worthwhile to reduce operating costs. Targeted interventions that improve the energy efficiency of the property can result in financial savings and an increase in the property’s value. The following measures have the greatest impact on reducing heat loss and operating costs:

The amortization period for these investments typically ranges from 10 to 20 years, depending on energy prices and individual circumstances.

Additionally, the federal government and cantons often support energy-efficient renovations with funding programs. It’s therefore worthwhile to inquire about current funding opportunities before undertaking a renovation.

Ultimately, each property must be considered individually. Factors such as age, building substance, location, and personal preferences play an important role in planning renovations. Professional advice from experts can help make the right decisions and plan investments optimally.