Financing property purchase and modernization

Then just buy first with the equity. And then you borrow money when you have concrete plans. I had a clause in the contract with the bank that I could waive up to €20,000 free of charge. And the bank (Sparkasse) did not pay out only based on invoices, but simply upon request.

With mod and ren definitely more and with an old house (as is the case here) the value increases disproportionately compared to the mod and ren costs, in other words, it can happen that the discounts when valuing the property without mod and ren become too high in the dilapidated condition.

The house is not dilapidated, it is from the 1950s and everything is no longer up to the latest standards, but it is not structurally unsound.

The planning of the renovation and modernization is not yet advanced enough for me to provide listings on it now. However, the purchase is supposed to take place soon.

What can one say to that, then of course you cannot take these into account either.

Although I cannot imagine that it is not possible to determine what at least must be done, especially since work can then also be postponed, meaning as long as the funds flow into value-adding measures, it is not entirely crucial that these must be carried out exactly as presented in the financing application and the costs are relatively easy to determine.

The house is not dilapidated, it is from the 1950s and everything is no longer up to date, but it is not dilapidated.

Well, but that is enough if nothing is up to date anymore and the year of construction is 1950.

The house with the property is worth about €130,000.

If you buy it for €90K, you are already putting in €40K of equity (preferential price within the family), which the bank will also take into account in the terms (provided the house is in normal condition and not "junk").

The planning of the renovation and modernization is not yet so far advanced that I can provide breakdowns for it now. However, the purchase is supposed to take place soon.

Then pay for the house from equity. When you later know what you are renovating and have an overview of the costs, you get the necessary money from the bank. Maybe also a little more to get back equity and have a buffer.

Thank you very much for the previous advice.

I just looked at the repayment calculator for a KfW loan for property financing, and in my case, an interest rate of 0.75% would be indicated for a loan of 40 or 50K € for 5 years. Is it realistic that I could also get that in my case? What would speak against it? That would then give me 50 or 40K € again, which I could prove as equity for a modernization.