Buying a house without a mortgage loan

We will never buy a house without documents again. Building files, floor plans, and whatever else there is, I want to see them beforehand next time and have them externally checked if we don’t understand something. And next time I’ll also look differently at the development plan, because there was a small subtle line that I didn’t understand as a layman. That was the planting strip.

Exactly that. Be sure to get (!) the building file along with the building permit from the building authority. You can’t otherwise be sure you’re buying an approved residential building.

The house was built sometime before World War I; most of the documents for it simply no longer exist. The seller had to go from office to office until she at least obtained the land register excerpt and the parcel. I said I would show up there with the appraiser so that there are no (big) nasty surprises.

Property transfer tax €7,500 and notary costs €1,875 together amount to €134,375. So much for €110k.

If a bank says the house is only worth €130k, then go to the next one. To the Deutsche Bank, our plot was only worth €50k, the Sparkasse accepted €130k...

Consumer loans are usually capped, I think €50-60k, and significantly more expensive in interest because the bank is not listed in the land register. By the way, there are additional costs at the notary for registering the land charge, something three-digit.

You can also renovate step by step. Save up and install windows. Save up and do the heating. If the owner lives there, you can do it too. Maybe it’s getting too expensive for her alone, that's why she wants to move out.

Hire a building surveyor as soon as possible and then buy. Don’t waste time; there are quick buyers everywhere.

I pay the notary and the like out of the equity capital, just as one normally does. So nothing with 134k. Almost 10k for the notary and property transfer tax, 10k equity capital and then 115k (yes, I omitted 5k) loan.

I have contacted a building surveyor, but it is the weekend. For this building, we have not yet submitted a loan application, but for another one, and BB Bank has been reviewing it for a week now!

You can hardly see any of the timber framing.

Even what you don't see can be rotten. Hidden timber framing is actually a disadvantage in this case, as the expert cannot inspect the beams behind the plaster without causing damage.

But can I just take out any random loan for any random amount, for free use?

Sure you can. If you need 20k for a new heating system, that is often a good idea. But realistically, you will need more like 200k than 150k; banks won't do that without collateral. Even if you don't want to hear it... for a fixer-upper house, you can't calculate the loan amount simply as the purchase price.

For me, it is actually only about the purchase. For the rest, then the right way is through [Modernisierungsfinanzierung].