Financial planning for repurposing

I consider the estimated construction costs to be too low. What in the [Kuhstall] can you reuse? As a rule, demolition and new construction is more economical; I would sit down again with a specialist who has actually carried out such projects. 240,000€ including all incidental costs and even furniture for 200m² living space is not believable to me, not even in the inexpensive [Niedersachsen].

Own contribution: approx. €50,000 (we have no time pressure at all, as we live rent-free in the parental house next door and want to do as much as possible ourselves)

Yes; you do have time pressure. Big time. You want money from the bank, and KFW 124. The commitment interest for KFW 124 is 3% on undrawn funds, and that starts after 4 months. There’s no way around that.

You can negotiate with the bank, but they usually allow 6 months for free, some offer 12 months free or for a surcharge. But longer than 12 months is quite rare.

And after the commitment-free period, it usually costs 3%. And that can add up.

How long were you planning to estimate for the project?

Regarding the construction costs, we are currently in the process of obtaining quotes. The exterior walls of the cowshed are intact and only a new formwork needs to be installed from the inside. The majority of the roof is in great condition and doesn’t require any work. Since we live on a farm, machines, etc. are practically already available or can be borrowed for free from neighbors.

Regarding the time pressure: the KfW loan is 50k which we can draw first, and we should be able to achieve that within 4 months. For the TA loan, the bank offered 24 months without commitment fees. That was not a problem. We are already estimating a construction period of up to 2 years, as, as mentioned, a lot of the work will be done by ourselves.

If they live rent-free, they can already access the money and repay it without double burden. According to the OP, there are enough securities...

If they live rent-free, they can already access the money and pay it off without double burden. According to the OP, there are enough securities...

Well then :cool:

Hello everyone, we now have a financing proposal from Volksbank. I would like to ask for your opinions.

Loan: €200,000.00
Repayment: €275,179.14

Component 1: KfW-Wohneigentum 50k
Component 2: TA-Darlehen 100k
Component 3: Bank-Darlehen 50k (variable)

for 1: installment €210.84 (1.35%, 2 years repayment-free, term 25)
for 2: installment €191.67 (2.30%, interest only)
for 2: installment €260.00 (savings 15 years)
for 3: installment €122.92 (at 50k, 1.95%, fixed term 10 years)
Total: €785.43 (after 2 years, as the KfW is repayment-free for 2 years), prepayment options (e.g. in case of an inheritance are sufficiently available)
Offer is non-negotiable.

Component 2: Here the loan is replaced after 15 years by an annuity loan. Remaining debt approx. 50k, which is then paid off.

What do you think of the offer?

At the same time, we have made an appointment with the local Sparkasse to get a comparison.