Financing for an existing property from 1960

  • Erstellt am 2021-08-29 16:12:39

ElektroAss

2021-08-29 16:12:39
  • #1
Hello everyone.

I came across this forum a few days ago because I wanted to review my financing offer. Unfortunately, I didn’t find any topic that I could compare with my project.

Therefore, I would like to tell you about my financing and find out if I am making a mistake or if you would recommend other options.

So, I currently want to buy a property for €290,000 + €35,000 ancillary costs.
Additionally, there is a calculated renovation cost of about €100,000, which I will carry out mostly myself.

I actually wanted to cover the renovation from equity, but the bank advised me to include half of the renovation costs in the loan and bring in €50,000 of equity. With the KfW loan, I am also worse off regarding the interest rates.

The current offer from my bank is:

Loan amount: €325,000
Term: 20 years
Nominal interest rate: 1.52%
Effective annual interest rate: 1.55%

Are these reasonable conditions, or would you rather advise against it?

I look forward to your answers.

Best regards from NRW
 

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