Financing offer for a core renovation

I know it differently to pay out 240k for renovation... that requires a good partner. If everything is done by invoice, it is easier; with own labor, banks have more difficulties (at least the big ones).

There are offers available...

I assume there are invoices.

However, I do agree with you on self-performed work.

There are offers available...

So I assume invoices.

But with own work, I definitely agree with you.

is not clear to me....

With a purchase price of 60k and a house that can still be renovated, the land is basically a gift. In this respect, one can be glad if anyone finances it at all. Renovation because of the outdoor area? Otherwise, wouldn’t demolition and new construction be more economically sensible? They should still calculate everything for you in one large annuity loan, that is simply more manageable.

Well, usually when buying existing properties, you are mostly buying the location. I see it more like the land is purchased and the house on it is free.

The best example is me personally. The first house I bought was before the foreclosure. After a suicide and fire. Purchase price €7,500. The value of the land was €40,000 in 2010. Of course, I renovated and have now sold it at a profit.

Second purchase this year: bought a house for €165,000. Completely renovated and overall ended up at about €240,000 including purchase price.

The land is worth about €80,000. Good location and bigger. That means: I effectively 'built' a house up to current standards for €160,000. Including finished outdoor facilities, an extra conservatory, basement, and a masonry triple garage.

Compromises in the floor plan, though. But that’s fine.

At that price, nobody builds new. Definitely not comparable.

Therefore: don’t always be so pessimistic. Existing properties can make sense.

So purchase price and renovation measures are fine, you can accept that as is. The bank is financing it as well (value is higher).

My specific question: In your opinion, what is worse about the TA loan compared to the annuity loan? When I compare, the annuity loan costs me more with the same term if I include all credit expenses. Am I thinking wrong?

What speaks in favor of the annuity loan?

What do I need/should I still address regarding the offers?

So far, everyone has advised against KFW in our case, as there are no positive effects.

Best regards and thanks for your support!