Financing Strategy House Purchase Interest-Free Period

Well, but only after handover. And that would be the occasion to pay for the house as well. Unless it is an area where real estate is so sought after that the seller can put everything into the contract. Because there are so many interested parties that one will agree.

Yes, how is he supposed to renovate without handover??

Every common notarized contract states "payment of the purchase price simultaneously upon transfer". To speed up the process, a notary escrow account can be used. Whether the new owner then renovates or not is their own business. The seller, of course, wants their money when the house is gone. And only then can I renovate. Strictly speaking, only after the transfer of ownership, because there is theoretically a risk that someone exercises a right of first refusal (e.g., [Kommune]).

The notary inquired with the municipality in advance regarding the right of first refusal. They waived it. The fee was, I believe, €10.

Yes, how is he supposed to renovate without handover??

No way. Sequence: handover and purchase payment ideally almost simultaneously. After that, renovation can take place. Only the OP doesn't want to pay anything for his loan until then and also while renovating. That might work if he can arrange a year of no loan commitment interest. But as soon as money flows, at least interest will be charged. I wanted to point out: depending on how tight the real estate market is in the OP's area, the seller might also insist: pay now, hand over in November. And then costs start from now on as well.

Not at all. Sequence: Handover and purchase price payment ideally almost simultaneously. After that, renovation can take place. But the OP simply doesn’t want to pay anything for his loan until then and also while he is renovating. That might work if he can arrange a year of interest-free provision period. But once money flows, at least interest is due. I wanted to point out: depending on how scarce properties are in the OP’s area, the seller might also demand: pay now, hand over in November. And then it costs from now on.

Unfortunately not! No matter how scarce the properties are, as I already wrote, the handover takes place on a Zug-um-Zug basis against payment of the purchase price. When payment is made, the loan is drawn upon and interest and repayment are always due. Anything else is wishful thinking. Whether he renovates or not is irrelevant to the bank. I am d’accord with the rest of the statement

what does unfortunately mean? For the buyer, such a situation is of course absolutely undesirable. This would lead to a double burden. But is there really no freedom of contract to agree on when the price is to be paid?