Bank offer attractive or not?!

you just have to weigh what you want. Flexibility, so this 50k flat rate or better conditions.

That is definitely the trade-off we have to make. The 50k just seemed very high to me compared to what I have read and heard so far.

I don’t know how many m² the place has, but 200,000€ sounds like a complete renovation: so everything completely new, from plumbing, electricity, roof, and interior work. Are you sure you really want to pay craftsmen 50,000€ cash without an invoice?? Or do you want to buy materials yourself for 50,000€ and process them yourself? Then you have an invoice and can also submit it. In that case, you would have negotiated wrongly with the bank, because currently the offer naturally includes the black money or consumer goods surcharge for the 50,000€ cash.

It has 200sqm of pure living space + 100sqm basement. No, I don’t want that, but since I want to do a lot myself I also need the appropriate machines and would then buy them and I also don’t want to submit invoices of around 100€ or something like that. So the money would be good for that. Or to basically pay my own labor (only to a small extent) so I can take maybe one or two days off unpaid from work IF necessary.

have you fully understood Bau Riester and the disadvantages that result from it? Then actually the only option is to stop immediately, convert into a normal Riester, or dissolve it. 1.7% for 20 years is actually not bad for an almost 100% financing. The house won’t be worth 350k€ later. Does the grandpa have a separate apartment and pay rent?

Back then no, maybe I was too ignorant or naive – you can see it as you like. If anything, I would convert it anyway if I don’t need it. The question is what the value is based on? On market value? Then I say, if I compare the houses on the market, the house will be exactly worth that or more. Maybe my current value estimate is way too low. The apartments are not separate, so there is a shared hallway from which he accesses the bathroom etc. If he passes away or has to go to a nursing home, then we would occupy both floors (child planning is coming in the next years). Therefore, he only currently pays the utility costs.

The offer from the house bank is fair and good. I would take it. However, I would try to be free of it in 15 years. Therefore, not fixed for 20, but rather fixed for 15, with a special repayment option. Please convert the Riester into a normal one based on stocks. Our stock Riester plans do very well, while the fixed-interest Riester plans do not make people happy.

The apartments are not separate, so there is a shared hallway from which he accesses the bathroom, etc. If he ever moves out or into a nursing home, we would then occupy both floors (child planning is coming in the next few years). Therefore, he currently only pays the additional costs.

I would not focus on the overall conditions, also look at other terms, provision interest, what happens if you need only 170k instead of 200k. Prepayment, repayment change, repayment-free period... these were things important for us to approach our upcoming renovation with little double burden and time pressure.

And consider whether you should provide grandpa with a rental agreement after all. That could have tax advantages -> renting to relatives is 66% of the local usual rent and you can deduct part of the costs for tax purposes.

I find the second paragraph about Grandpa and the lease impossible. It's as if you receive a house by way of the preliminary inheritance and then come at the former owner with a lease.

Sorry, you misunderstand me. It's not about squeezing money out of the former owner.

My sole concern is that the already paid additional costs are documented in writing in order to claim them as income-related expenses. Also, it should be clearly stated that there is a separate apartment that is also rented out. In any case, one can try to claim the additional costs there.

So in this case, I would primarily approach the tax office with the rental agreement to secure a financial advantage for myself.

I probably just expressed myself a bit unclearly about the intention behind it, sorry.

Sorry, you misunderstand me. It's not about squeezing money out of the former owner.

My concern is solely that the ancillary costs already paid should be documented in writing in order to claim them as advertising expenses. Also, it should be clearly stated that there is a granny flat which is also rented out. In any case, you can try to apply the ancillary costs there.

So in this case, I would mainly approach the tax office with the rental contract to secure a financial advantage.

However, I probably expressed myself somewhat unclearly regarding the intention behind this, sorry.

But grandpa has a registered right of residence, which means to me (as far as I have read correctly) no rental contract since he is allowed to live there rent-free under tenancy law.

What you said about ancillary costs might be interesting though. Whether I can draw up a contract for that since we share the ancillary costs (except electricity, he has his own meter).