Is financing for a semi-detached house feasible?

Hi, Wohnriester is not bad. However, Wohnriester home savings is only suitable if you also plan to live there forever because of the subsidy money. Otherwise, you have to pay back the subsidy money. The "Riester" program is well suited for families with children. You receive allowances for the child as long as they receive child benefit. And you must pay in at least 4% (I think) of your net salary to fully utilize the Riester. But beware: banks would also like to include Riester in their loans after allocation maturity. That means you get none of your allowances, but the bank does. And the disadvantage of Bausparen-Riester is that it is not flexible. And if you are still interested in it, then make sure the closing fee is under 3%. Because with the conclusion of the contract, this is initially offset against what you pay in with the fee. I made that mistake :(

That is not entirely true. You only have to pay back allowances if you sell the house without buying another property for personal use. And it is precisely the fact that the allowances are used for repaying the loan that makes the advantage of Wohn-Riester. Because by doing so, you pay back more, save interest, and do so with money that you get on top.

However, I am (I am a pessimist by nature) afraid that I will not be able to repay the remaining debt in a maximum of 15 years with at most the same rate, because the interest rate will eventually rise... I am just an insecure scaredy-cat, and bank advisors are always potentially just after my money. The last one wanted to immediately include Wohnriester, but he couldn't explain it 100% clearly. What do you think about that?

Ok, if that's the case, then you have two options: a very long fixed interest period of 20 years. Disadvantage: the longer the fixed interest period, the higher the interest rate and thus the entire financing.

Option 2: normal fixed interest period of 10 years with securing the follow-up financing through a building savings account. Advantage: same interest rate security as option 1, but significantly cheaper interest rate for the first 10 years. Flexible deposits into the building savings account and you can additionally receive the Riester allowances for your deposits.

Which option do you prefer?

If I were you, I would first conduct an on-site inspection with an expert before purchase, check the condition, document any structural damage/moisture damage, and estimate the renovation costs. Houses from the 1950s were built very economically and have a very poor energy performance level. Moisture loads in the basement and in the ground floor plinth area due to missing building waterproofing are also relatively common. Therefore, the renovation effort should realistically be factored into the overall financing by you before purchase, including the actually possible personal contributions.

The purchase price, relative to the year of construction, does not seem excessive to me but should be recalculated based on the land reference value. When estimating the renovation and modernization costs, the retrofit obligations according to the Energy Saving Ordinance should be considered, as well as a fundamental energy-efficient renovation of the house that also includes the windows. I consider the costs allocated for roof insulation to be significantly too low; the effort can only be estimated once the existing roof structure is known.

The cost estimate should be prepared in detail as a cost calculation by trades to ensure the lowest possible tolerance range of +/- 10% to the actually incurred costs later on. "Rule of thumb" cost estimates without quantity surveying and current existing plans are especially risky with tight financing; the bank will see it that way too.

Thank you for the answers.
At the moment, I would choose the 2nd option. I just have to take a little risk.
If I’m not finished in 25 years, it won’t kill me either.

On Saturday, I will look at the house again with a friend who has renovated several houses; he should approach the matter with a completely different perspective.
Through a neighbor I have since contacted, I will certainly get some more information. After all, there are a total of 8 semi-detached houses from the same year of construction.
If necessary, if something still seems odd to me, I will of course involve an expert.
I know that houses from the 50s don’t have the best reputation, but you just can’t get everything you want in the area for my budget.
The friend who is a roofer would do the roofing with me; according to him, it won’t cost a fortune. My renovation plan itself will be discussed with an expert beforehand,
but thanks for reminding me again not to underestimate everything too easily.
Best regards, Daniel
Best regards, Daniel

Where is the property located? I conduct independent real estate purchase consultations in NRW/RLP. I will gladly send you more information by email.

Thanks for the answers. At the moment I would choose the 2nd option. I just have to take a bit of risk. If I'm not finished in 25 years, it won't kill me.

I think it's very good how you are proceeding. Gather all possible information from neighbors and experts and then make the decision yourself. Securely finance the majority of the sum and then it looks good.

What came of the viewing on Saturday?