Is financing for a property okay like this?

Hello,


After a long search on the outskirts of a major city, we have finally found a property that meets our wishes. Unfortunately, we have no knowledge at all about financing, etc. :-(

A brief introduction about us:
- Civil servant (2,000 net)
- Employee (approx. 1,000 euros net)
- 1 child (3 years old)
- Equity capital: 80,000 euros plus approx. 9,000 euros for initial renovation
- 1 small building savings contract running since 2011 (amount: 10,000 euros) with monthly deposits of 50 € + advance deposits
- Wife has a life insurance policy (wife is currently not here.. therefore no details available right now)
- No debts


House:
- End of terrace house
- Purchase price 200,000
- Broker: 3.57%
- 110 sqm living space
- approx. 250 sqm plot size
- 1 parking space - no garage
- Year built 1962
- Development: fully developed
- Energy certificate: consumption-based energy certificate for residential buildings,
- Energy demand 192 KWh/(m²a), energy efficiency class F,
- Main energy source: gas
- Heating renewed in 2004
- Roof/facade insulated in 1996
- Double-glazed windows from 1985
- Electrical system from 1983
- Condition of the house after our viewing: first impression okay
- Guest bathroom and kitchen would be retiled
- New floors (laminate) would have to be laid in 2-3 rooms
- According to information from the broker and the current owner, the Eternit flat roof may need to be renewed within the next 10 years.


Currently, we pay approx. 500 euros cold rent plus 200 euros ancillary costs.

We now have a few financing offers and would like an assessment, please:

Offer 1 (Annuity loan 100,000 euros + 40,000 euros KFW):

Monthly total expense including repayment (after interest-only period) 658.39 €

Annuity loan: 100,000 euros
fixed nominal interest rate: 2.80% p.a.
effective annual interest rate: 2.84%
Initial repayment rate: 2.50%
Optional special repayment right: 5,000.00 EUR p.a. (min. 1,250 euros)
Fixed interest period: 15 years
Installment: 441.67 €
Provision interest: 3.00% p.a.
Costs for appraisal: none
Processing fees: none
Residual debt: approx. 53,461.99 € at the end of the above fixed interest period
Calculated contract duration: 26 years 11 months

KfW loan: 40,000 euros
fixed nominal interest rate: 2.30%
effective annual interest rate: 2.32%
repayment rate: 4.20%
Fixed interest period: 10 years
Installment: 216.72 €
Provision interest: 3% p.a.; 0.25% p.m.
Processing fees: none
Partial valuation fees: none
Residual debt: approx. 23,212.76 € at the end of the above fixed interest period
Calculated contract duration (at constant interest rate): approx. 20 years


Offer 2 (Annuity loan 140,000 euros):

Monthly total expense including repayment (after interest-only period) 618.33 €

Net loan amount 140,000.00 €
fixed nominal interest rate 2.80% p.a.
Effective annual interest rate 2.84%
Initial repayment rate 2.50% p.a.
Optional special repayment right 7,000.00 EUR p.a.
Fixed interest period 15 years
Installment 618.33 €
Provision interest 3.00% p.a.
Costs for appraisal none
Processing fees none
Residual debt approx. 74,848.56 € at the end of the above fixed interest period
Calculated contract duration 26 years 11 months


Offer 3:


- Nominal amount: 140,000.00 EUR
- Interest fixed period (in years): 10.00
- Rate (monthly): 650.00 EUR
- Nominal interest rate: 2.230%
- Effective annual interest rate - end of fixed interest period: 2.25%
- Initial repayment: 3.341%
- Annuity rate: 650.00 EUR
- Residual debt: 87,647.945 EUR



Now we would like some opinions, since as mentioned, we have no knowledge here at all. I think offer 3 is already off the table because of the only 10-year fixed interest period.
We might possibly secure offer 1 later with building savings contracts?!

What do you think? Are the above financing options okay or would you finance it completely differently (maybe with Wohnriester etc.)?

Do you have any other tips or what else should one consider with an end of terrace house? :-)

What kind of structural things can we expect in the coming years with the information given above?

Thanks in advance :)

Just a few tips, I’m not familiar with finances either:
Even if you consider the condition of the house to be okay, I would consult an expert for a building from 1962.
Unfortunately, you don’t say where the house is located – here you can get almost a new RH for 200,000.
So where do you pay so much for a house over 50 years old?
What about the roof? Is there asbestos in the Eternit? This must not be concealed by the seller.

And just read somewhere: you can quickly grow mold and fungus with laminate flooring in older buildings. I don’t know how true that is.

Thank you for your response... We have also considered consulting an expert. But how much does something like that roughly cost? Unfortunately, the price here is "normal." Big city after all.

We asked about asbestos. According to the seller, asbestos-free.

We are more concerned about the energy demand (Energy demand 192 KWh/(m²a), energy efficiency class F, the old electrical system, and the windows from the 80s). Can you maybe say something about that?

We didn't know about the laminate - thanks for the tip :-)

1962 roof and asbestos-free? I'm not sure, but as far as I have read, the asbestos-free panels only came onto the market later.

Was it probably renewed in the meantime!?

That can then be assessed by the expert, it pays off if you then know what really awaits you when buying ;) I would also have that in writing, that with without asbestos ;) - then you can claim damages if the roof does turn out to be with asbestos :p