Pledge the house or take a mortgage to renovate the property?

Hello everyone, I have a listed building (200m² + attic) and want to renovate it. Professionally, I have been self-employed for 1.5 years, and we get by with it. I would like to mortgage the house and invest the money into the house to rent it out. Would one bank accept the house as collateral, or is there no way around showing the financial statements of my activity?

There is probably no way around it, especially not since 21.3. But even before that, it would have been questionable.

What of course looks positive are the expected rental income. At least that doesn't make the situation worse.

It also depends on whether you want to take out 50 or 500 thousand euros for a property that is actually worth 250 thousand euros.

However, the historic preservation regulations do not make life easier now, especially since you cannot just do anything there. On the other hand, the limits are more relaxed, for example, regarding insulation, and the grant funds are sometimes more generous (KFW), but the planning and execution are also more expensive.

I’m bothered by the addition: we’re getting by .... Doesn’t exactly inspire hope that things are booming for you

What bothers me is the addition: we're just getting by.... Doesn't exactly make one hopeful that things are booming for you

The sentence refers to our unusual lifestyle and is meant to avoid creating false impressions. We live very modestly and forego many typical consumer habits (expensive smartphone, vacations, new car), but have stocked up on antiques, design classics, and artworks that others would see as extravagant, but we consider a stable investment for enjoyment.

I prefer to keep modest rather than create false impressions. But you are right, it can be interpreted negatively.

Banks welcome it when you set some money aside instead of consuming (whether art or smartphone, car or antiquarian). The income/expense calculation must have enough leeway for the installment in the end.