Financing: how to proceed with further required funds?

Good evening,

I would like to know your opinions. So far, I have mostly been a silent reader.

Initial situation:

- Permanent full-time job
- House bought with equity.
- Took out a construction loan. 40,000€
-> this financing would have worked if I had left out my special requests <-
Monthly installments: 200€ (why so little? I am also thinking of hard times)
Annual special repayment: 4,000€

It is such that I barely manage with 75% of my tasks with the money + my salary. I can thus establish partial habitability.
Due to lack of experience, I simply miscalculated a bit. Well, the die is cast now.

Further information:
- One tenant in the house, 230€ cold rent.
- So I have about 1400€ monthly at my disposal after deducting insurance, etc.
- No children and planned in about 5 years
- Another apartment could be finished for renting, which would bring about 350€ cold rent. However, I would need to invest another 10,000€ for this.

What do I need now?

According to my calculations, which are now based on experience, I need another 20,000€. In addition, I would like to install a new heating system. From gas to pellets. Due to own labor, another 10,000€ would be incurred for this.

So we are talking about an amount of 30,000€ that I urgently need.

What would you do?

I think you should definitely get an installment loan, but at higher interest rates. There are also installment loans under the umbrella of homeownership, without a land charge, cheaper than an installment loan, more expensive than a construction loan. 30k for a construction loan is basically too small an amount, and a new bank would not agree to subordinate. Basically, your best alternative remains your current bank to inquire about follow-up financing.

What would you do?

Consult a tax advisor (regarding the rental and the question of equity or debt).

If the house is not completely worthless, you should be able to get further credit without any problems. The requested amount is just a bit small for many banks (they have the same work for 20,000 euros as for, for example, 400,000 euros, but earn nothing from it).

Go to your bank and ask about the loan. Alternatively, look elsewhere for cheap loans. 30000 is not an amount that one couldn’t manage separately.

The turbo loan at Wüstenrot works, to my knowledge, up to 30,000 euros... google it, in my opinion it would fit your situation exactly...