Bridge financing plus renovation, what's the best way?

Additional: I have just now noticed that you are relating the 250k euros equity to the sale price of the house. You don't have that money yet, and the question is whether you really need it for the purchase plus renovation. If you don't need it and can get a loan of 250k - 300k on the new house, then you can use your 100k + 80k from stocks for the renovation.

I don't mean the value of your existing property, but the loan value of the property to be purchased. [...]

Ah, okay, now I understand. Sure, that makes sense! That would definitely be an option.

Regarding the renovation, I was thinking of a KFW loan, for which I need a calculation anyway. However, there is also a grant without a loan, which might even be the better option.

A "problem" with part of my equity is that I am participating in a program where you are rewarded for holding stocks for a certain period, you get one stock for every three stocks held. Almost 50k are affected at the moment. I can sell them at any time, I would just forgo one benefit. That's why I would like to keep that part. But you have to calculate it soberly.

The appraiser's calculation is supposed to come tomorrow, I'm curious to see what he says.

Mia

Good morning

so financing:
a standalone KfW loan for the new property (€100,000) with bridge financing on the old property will probably not be given by any bank here (because they have more work to do (valuing 2 properties) and will hardly earn anything in the long term (10-15 years) on the €100,000)

therefore this option is off the table.

banks can provide bridge financing if they provide a larger, long-term loan on the new house (at least €100,000 without KfW)

therefore, I would choose the "grant variant" at KfW, without a loan. This means the money goes into your account instead of being a repayment subsidy at the bank.

to keep things uncomplicated here, something like this would be "recommended"

you buy the house for €275,000
€100,000 comes from financing at the bank
€175,000 is bridge financing (until the property in Bavaria is sold)
the incidental costs are paid out of pocket. (€25,000)
(equity investment: €25,000)

you then pay for the modernization completely out of pocket, or you do that first so it is ready to move in.
other things, such as outdoor facilities, can be done gradually, especially after you have sold the property in Bavaria and the money has come in.

that means depending on modernization costs, you might initially invest €125,000 of equity... and the rest when you have the money from Bavaria in your account.

Good morning so financing: a stand-alone KfW loan on the new property (€100,000) with bridging finance on the old property will probably not be provided by any bank here (because they have more work with this (assessing 2 properties) and will hardly earn anything long-term (10-15 years) on the €100,000) so that's off the table. banks can provide bridging finance if they grant a larger, long-term loan on the new house (at least €100,000 without KfW) [...]

Thanks for the detailed answer! Yes, very interesting, that sounds like a totally feasible way. I will inquire with the first banks about the option on Monday, the report from the surveyor is in and sounds quite positive. To move in, windows, walls, floors, and bathroom would have to be done, of course, that is manageable with reasonable costs. For the windows, he recommends an over-insulatable variant, then I can do the facade after I have moved in. I agreed and now hope that I get the contract. Looking forward to it!