Remaining useful life and modernisation: how many years does your house have left?

The remaining useful life indicates how long a building can still be used economically if it is properly managed and maintained (§ 4(3) ImmoWertV). Modernisation extends it. In about four minutes, this video explains the points model of Annex 2 ImmoWertV and uses an example to show how many years modernisation adds.

What you will learn in the video

• Terms: total useful life (model value, e.g. 80 years), age and remaining useful life (§ 4 ImmoWertV, Annex 1).
• Modernisation points: roof and façade insulation up to 4 points each; windows, pipes and wiring, heating, bathrooms, interior fit-out and floor plan up to 2 each – a maximum of 20 (Annex 2).
• Worked example: built in 1966: approx. 21 years without modernisation, 37 years with 8 points, 45 years with 12 points.
• Relevance: age-related depreciation in the cost approach (§ 38), present value factor in the income approach (§ 34), tax depreciation for let properties.
• In practice: keep invoices and photos; a maintenance backlog can shorten the remaining useful life.

Legal basis and sources (as of 9 October 2026)

• § 4 ImmoWertV – age, total and remaining useful life
• Annex 1 ImmoWertV – total useful life
• Annex 2 ImmoWertV – modernisation
• § 38 ImmoWertV – age-related depreciation factor
• § 34 ImmoWertV – present value factor
• § 7 EStG – depreciation for wear and tear (AfA)

This video is an information and promotional video of the real estate appraisal office STRECKEL for its own services. It provides general information, is not tax or legal advice and does not replace an appraisal of your property. Examples are simplified.