Pay compensation to helpers

Hello community,

we are buying a semi-detached house from the 60s. The renovation need is significant. Fortunately, I have the opportunity to involve friends and relatives, and I would like to pay a compensation for expenses in each case. For example, my brother lives 70km away and then drives 140km every day for 2 weeks for me. Calculation: 140km x 12 days x 30 cents = 500€ just for my brother... For 100 hours, 500€ is of course not much... But still, it adds up and then "is missing" in the total calculation for the LABO and the KFW. The question now is whether I may/can pay compensation for expenses and then declare them?

Thanks and regards

Florian

hm black is beautiful..........

Do you have no equity? Otherwise, depending on the financing model, the bank does not want to see every single cent documented (questions?!). You obviously need to document every cent for [KfW].

As long as the small financial recognition does not escalate into a fixed compensation based on hours worked, that is probably fine. However, if an hourly wage is agreed upon and the helper is paid, this counts as undeclared work (even among friends/family members) and if discovered by inspectors, the trouble really starts.

The costs for this are your own responsibility and, as I suspect, cannot be claimed.

Much more important is that you insure your helpers and that is a must!

The question now is whether I am allowed/can pay compensation for expenses and then declare it?

I believe that own contributions (which also include private helpers) are usually taken into account by the banks on a flat-rate basis. This means that a certain amount is set for a specific service ("painting work"), which is included in the valuation. If you also need money from the bank for this, you should mention it in the conversation before signing.

I think that personal contributions (including private helpers) are usually taken into account by the banks as a flat rate. That means a certain amount is set for a specific service ("painting work"), which is included in the evaluation. If you also need money from the bank for this, you should mention it in the conversation before signing.

not with the big banks, which is why it is always advisable not to always look at the 0.000x %, but also to choose the financer according to your own needs