Home purchase financing with little equity?

260 k€ for a house in need of renovation with 120m² is not that cheap (of course it depends on the location). I also consider the 20,000€ very optimistic. Usually, the bathroom costs between 5-10k€, even if you do everything yourself and buy online. Sure, at Reuter etc. it looks cheap at first, but then the bases, connections, etc. are added. Then you still need fittings, etc. Have you ever checked how much shower enclosures cost? We are currently calculating our bathroom as well. Even with internet prices, I probably won’t get under 10,000€ without luxury. It’s similar with new electrical wiring. On the one hand, you want a bit more than what is already there (otherwise it often doesn’t make sense), and then a lot adds up. Switches, flush-mounted inserts, and sockets alone quickly cost 1,000€. The cables for this amount also aren’t free, and a fully equipped fuse box costs as well. Can you do the wiring yourself (including planning)? If you have to bring in an electrician every two days to discuss what goes where, that also costs. Moreover, an electrician doesn’t connect an entire house in 3 hours. This means costs are involved here. Even without major fancy features, I would estimate 3-5k€ here.
A lot has already been said about flooring. Basically, nothing is feasible under 20€/m². That would already be very cheap because with inexpensive laminate (12-15€) you still have to add impact sound insulation and baseboards. If your floors are uneven, it can get expensive quite quickly. Wallpaper for 1,000€ is then probably just "Raufaser," right? I would estimate that about 150m needs to be wallpapered. That means 75 rolls of wallpaper with room heights up to 2.5m. Plus paste, tools, paint, etc. I’ve left out ceilings for now. Maybe those can stay. It is very difficult to estimate heating without having seen it. A simple heating system replacement usually starts at 6-7k€. If radiators and/or pipes also need to be replaced, it can quickly get complicated.
Don’t underestimate all the “stuff” around it. When I think about how much money you spend on “little things.” A new mailbox, a broken doorbell, a new lamp, curtains, towel holders,... These are all things you don’t even notice, but which annoy you if they’re not done. You can easily spend a thousand on that too.

Regarding your financing: Your equity seems just enough to cover the incidental costs (around 16-19k€), assuming no realtor is involved. That means you can still get the 260k€ for the house financed by the bank. For the remaining 30k€ for renovation, it gets difficult because these can’t be directly reflected in the value. Some banks calculate 50% as value increase, some not at all; some may be able to fully finance the sum by “adjusting” with own services. But it always depends on the individual advisor and the bank. Since 01.04., it has become noticeably more difficult. Previously, the house bank might have turned a blind eye if the other data was correct. Additionally, there’s how high the bank assesses the house’s value. They have software that calculates a lending value based on comparable values. If, for example, that only comes to 220k€, you’re missing another 40k€ as “security.” Most banks don’t/won’t anymore finance over 100%. That means the rest has to be covered by other loans. However, the 50,000€ from your offer aren’t insignificant, since such loans on the one hand have high interest rates and on the other are short-term. The money generally has to be repaid in 10 years, so no money is usually available in this time to repay the main loan. It becomes worse if you only agree on a 10-year fixed interest period. Then you have to refinance after 10 years, have barely paid off any of the 260k€, but your house has aged and is therefore worth less (unless the land value rises exorbitantly). The refinancing then becomes a balancing act and can be almost worse than the initial financing.

Regarding time planning: In one month we managed the following (weekends always fully with 4 people, during the week 2 people 3 hours per day, plus 2 people one week full-time):
- Wallpapered 2 rooms (35m²+12m²)
- Paneled ceilings in 2 rooms (35m²+12m²)
- Installed network cables in the house (approx. 80m cable partly in already existing conduits, some lines flush-mounted, some access points)
- Basic cleaning of the house (certainly a full week in total)
- Little things (mowed and watered lawn, replaced broken lamps, installed lamps, coat racks and clocks, etc.)

I don’t know where all the time went, but after one month, we were just able to completely furnish the ground floor. But the entire basement was still full of boxes (even 2 months after moving in).

the fixed interest period is a good point ... a competent financial advisor will certainly be able to calculate all that for BER as well ... I hope so

the house is being offered by a real estate agent from a Volksbank, so I assume they have already determined the value that way.

your time estimate with all due respect but I think what you describe for the work of a month with so many people is quite long, isn’t it? when I think back, when we rented a 120 sqm house, for the complete program, wallpapering and painting ALL rooms and laying laminate in half of the rooms, it took two of us about 2 weeks to be able to move in quickly .... and we did it better than the "real" craftsmen the landlord brought in after a water damage (renowned specialist company from the region - no illegal Polish workers!)

I can wallpaper a 50 sqm room in one day if I buckle down meanwhile I have really practiced that

the house is being offered by a real estate agent of a Volksbank, so I assume they have already determined the value that way.

But then it is the market value and not a bargain. And if it is cheaper than average, there will be reasons for that.

You said you would renew the pipes because otherwise you would never do it again. You are referring only to water pipes, as far as I understand. What argument do you have, for example, not to renew the electrical wiring? What about the roof, has it ever been renovated, or do you think you can do that "on the side" in the future?

I also have the feeling that you are sugarcoating this a lot. I especially want to emphasize the renovation costs again. I think you might be thinking in the wrong order of magnitude.

Now let's get down to brass tacks!!!
You can't even get through the door with your own capital:
Real estate transfer tax: 16,900
Notary/land register: 4,500
Broker (assuming "only" 4%): 10,400
Total: 31,800 Euro

Now find the mistake yourself.

no ALL pipes, water, electricity, heating. because of the costs .... that's why I'm asking

but as an example .... aside from the pipes ... let's take the bathroom ...

large bathroom ... 5x3 meters .. makes 15 sqm floor. black granite tiles (internet prices) 400 Euro
wall area edge length of the rooms x room height 2.3 meters (which it isn't, a slanted window, door.) still calculating full dimensions = 36 sqm -> nice natural stone tiles = 1440 Euro

freestanding bathtub incl. fittings 800 Euro, simple shower partition with 2 real glass doors 300 Euro

toilet bowl 150 Euro, washbasin 400 Euro, faucet 50 Euro, shower faucet 100 Euro

pre-wall elements 2x 100 Euro each (maybe one less because of the washbasin)

drywall panels very generously flat rate 150 Euro + profiles also generously 100 Euro.

towel radiator 100 Euro

edge profiles, joint materials and adhesive sealing materials, insulation and small stuff generously estimated 1500

that gets me roughly 5700 Euro for the bathroom with the bowls we like .... as I said the entire pipework is on an extra bill, switches and sockets too and the toilet is thus the most expensive room of all ... is that so unrealistic?

of course the equity share is very low that's why I'm writing this .. the incidental purchase costs are higher also clear ... but how do people do it who fully finance their place? there are enough who somehow manage that and many don't look like moneybags either

is that so unrealistic?

Yep, it is. You don’t have a shower installed yet. A freestanding bathtub with all the bells and whistles for 800 would interest me a lot.

Can you tile? If not, let go of that idea. Unless your wife is into the look of poorly laid tiles.

What I don’t understand is, there are 3 pages here telling you this won’t work. But you keep arguing against it. I at least wonder why you ask if you don’t really want to know?

And the question of who made the estimate and who said the structure is alright is still up in the air.

Last but not least, you have to cover the incidental purchase costs yourself like everyone else. And when you buy a finished house, those are usually more expensive than if you buy an undeveloped plot. I wouldn’t keep indulging that illusion and would rather keep looking. Where is this gem supposed to be located anyway?