Question about financing existing properties

Of course, I meant in the month :D

The KFW loan of 50,000 is also sometimes counted as equity because it can be pledged in the 2nd rank. Or did I misunderstand something here while reading in the forum?

So, all in all, I calculated as follows:

Min. 280,000 value of the property after renovation
275,000 financing requirement

225,000 1st rank loan, just under 80% loan-to-value
50,000 2nd rank loan

Where parts can still be taken over by the Rentenbank or with additional funds from KfW for energy-efficient renovation. Both of which would also end up in the 2nd rank again.

Regarding the repayment plan and remaining debt at the end of the term. In a few years, we will benefit from 2 condominiums (inheritance case, may you live a long time! But it certainly won’t be 30 years) with a current value of 70,000 euros and 210,000 euros.

I can calmly pay and allocate 1000 euros at the moment. The additional money coming from reclassifications and tariff adjustments is not included because it would be unreliable. But they will come and will amount to 500 euros more per month in the next 2 or 3 years. This does not mean a tariff increase, which at best only compensates for inflation.

Wow, the last sentence was bad. That’s what happens when you’re feeding your son and writing here ;)

I mean, that more money is not a tariff increase, since these more or less just offset inflation.

Still about the eliminated rent. At the moment we pay just under 800 euros with electricity and gas. Of that, 550 euros are cold rent. Just so it’s not said that I forgot the additional costs for the house ;)

I still don’t quite understand what you want? Someone to just tell you yes and amen?

- 20K€ own contribution is quite a sum. Is that supposed to be pure labor savings? What about the materials? Do you have that much free time and vacation?

- Who estimated the 210K€? You yourselves or an expert?

- You haven’t had a conversation with an architect yet, but you already want to know what the property will be worth after renovation? Especially with existing properties, banks like to apply safety discounts of at least 10%. Then you’re at a loan-to-value limit of only 252K€ and have a financing need of 275K€, of which the kitchen is not eligible as collateral.

- You are basing your calculations on your current ancillary costs from your rental apartment and want to compare them with a house of 190m² and 2000m² of land? As far as I know, most banks calculate with 2€/m².

- As far as I know, the priority ranking in the KFW loan is handled differently from bank to bank.

- I’m not sure if the gift will work like that, since you are providing a counter-performance. Otherwise, this can quickly lead to tax evasion issues. (Topic [Grunderwerbsteuer])

Well, I don’t want a yes and/or amen, but arguing is allowed, right? Especially since there are detailed questions that I just want answered. Unless they were rhetorical in nature, which I didn’t understand that way. Or are you simply not okay with someone trying to correct arguments, but rather accept the first best answer?

Then let’s leave the kitchen out, we still have another kitchen that we can take with us.

The expected value after renovation is very conservatively calculated based on comparable properties and the investment costs minus 30% as an increase in value. Even an architect can’t say how the bank will value the property.

The 210,000 was determined by a bank three years ago.

Sure, the estimated 20,000 euros of own labor are just wages; unfortunately, I can’t build windows myself, knit insulation, or install a heating system. So those kinds of questions are really pointless, but your whole post is very negative anyway. With an estimated renovation cost of 120,000, those 20,000 can already be saved. But I also wrote that these are just estimates, as no architect has drawn up a renovation plan yet. Neither the actual renovation costs nor the possible own labor. The renovation costs are calculated high to have a worst-case scenario to just rely on.

I have enough time since I work shifts. In addition, during the renovation phase, we can live in the second apartment on the property, which makes the distances short and costs no rent. The time plan was nine months for the renovation; that should be enough for quite a bit of own labor. Especially since friends are also helping and all trades are represented there.

Well, even if we had to pay property transfer tax, that would be 6,000 euros since it is based on 120,000. The rest is a gift and not subject to property transfer tax as long as we don’t sell the property again. Plus notary costs. But my father-in-law would pay all of that if it came down to it. For that reason alone, I didn’t include and list these costs. But describing it like now would have completely blown up my original post.

I know that the 250 euros in ancillary costs we have at the moment aren’t enough to manage a house. But it won’t be 400 euros a month either, because then we did something wrong with the renovation.