Realistic financing project?

  • Erstellt am 2016-09-15 11:42:23

Knallkörper

2016-09-15 22:57:26
  • #1
Hello Iowa,

basically, I consider your project financially feasible. However, the prices give me pause.

280,000 for the renovation is a lot of money, I cannot see from your list why it is so expensive. I will write down how my gut feeling would be for the individual measures: Windows: 20,000 + "floor-level" 3,000 + 3 front doors 12,000 + hallway 8,000 + removing walls and structural reinforcement 8,000 + drywall and painter attic 9,000 + bathroom 20,000 + screed 80sqm with insulation 2,000 + downpipes, pipes, meters 5,000 + 2 pellet stoves with chimney 10,000 + rest of the house painter work 7,000 + balcony 15,000 + floor materials 12,000

That is initially less than half. Even in Bavaria, or if I am overlooking something, I do not understand that. You don't have a new roof, no new facade, etc.
 

HilfeHilfe

2016-09-16 07:49:44
  • #2
Hello,

are there any other children who could throw a "wrench" in your plans? If parents die within 10 years after the gift, there could be clawbacks. The same applies if it comes to a care case....

This also comes to mind in this context. Otherwise, have the "Zuwendungen" checked to see if they are taxable as rent or considered a gift....

Otherwise, 280k for the major renovation. hmm I also find that gigantic... Some people even build for
 

Espenlaub

2016-09-16 08:04:00
  • #3
Hello Iowa,



since you are renovating: do you want to keep an oil heating system alongside the new pellet stoves? And what about the insulation?

Otherwise, the financing should be fine, but make sure to get further offers from the banks.

Regards Rina
 

iowa84

2016-09-16 08:41:58
  • #4


What would still be missing are repairs on the roof from the outside. The facade will be replastered and repainted. The base of the house is crumbling and will also be repaired. The electrical system on the upper floor will be renewed and on the attic newly done. A floor heating will be installed in the bathroom. In addition, the old oil heating will be replaced, as well as 2 solar units for hot water installed on the roof. The WC on the ground floor will also be renovated.

Basically, the 280k is not yet final but a first offer on which we wanted to build because it is currently the cheapest out of 10 offers. How far we can still push it down remains to be seen.

There was a lot included that we don’t actually need or want to have done. Also included were all equipment features like floors, tiles, complete bathroom furnishings (down to the detail of the towel holder). Floors and bathroom furnishings in particular are omitted because 1. we don’t need a bathroom from our most expensive regional bathroom supplier and 2. we prefer to buy those ourselves. We will also source and lay the floors ourselves. Only the tiles I don’t dare to do myself, especially in the bathroom with the walk-in shower and the slope.

Today we happened to have the meeting with the person responsible. Let’s see how far he goes along. Otherwise, we will get more offers. So it is safe to assume 280k max. We are not in a hurry and can take our time because we don’t have to move out of another apartment or anything.

I have to have many things done because I’m not much of a handyman and I don’t want to burden my father who has already had 3 slipped discs (even if emotionally he can’t help himself ^^).

Basic things like laying floors, demolition and dismantling work, finalizing the home network, repainting the base of the house, painting interior rooms etc. we can do ourselves.



More children in the sense of my brother? Yes, but we already handled that via the notary, plus signatures of all parties. So I do not have to pay him out.

I will have the matter of the donations checked. Thanks for the tip!

Currently, it is planned that when bills (e.g. electricity, oil, insurance) come in, my parents simply want to cover a certain share. In the liquidity plan, that counts as rent since I calculated those costs per month. Many costs come only once a year, so no money will flow there monthly.

Still, thanks for the hint, I will check that as I said. Anyway, because of "later." Eventually, my parents will no longer be around – unfortunately – then we want to rent out the ground floor.
 

iowa84

2016-09-16 08:47:23
  • #5


Hello Rina,

yes, we just want a small mix. Pellets, oil, underfloor heating (bathroom). However, we have already significantly reduced the number of radiators.

Currently, neither the ceiling on the upper floor nor the roof is insulated. Both will be newly insulated. Wood fiber was used in the offer. Over the past few weeks, we have consulted various construction companies and specialists. Conclusion: We can also use mineral wool there and save about 10-15 thousand euros. Both materials naturally have advantages and disadvantages, which were repeatedly listed to us.

We will not do any facade insulation.
 

Bieber0815

2016-09-16 08:50:46
  • #6
It's not just renovation, but also conversion/extension. From the current 155 m² to then 230 m², means 75 m² new. Roughly 75 m² x 1500 euros/m² already amounts to 115,000 euros. Anyway...

The overall family constellation and possible tax issues should be considered:
- Transfer of the house,
- Later payment of (local customary?) rent from the parents to the child,
- Other children, relatives, additional assets.

With 4500 euros/net I definitely see no problems financing 280,000 euros. The bank will examine the lending value precisely (this is always a bit more difficult with conversion/renovation than with new construction), solvency is rather unlikely to be an issue.

With projects like this, something unforeseen will always occur. I would therefore want to borrow as much money as possible (so 280,000 euros) to have as much buffer as possible. Even if the interest rate is a bit worse. If things go well, you can repay early quickly; if not, you'll be glad to have money without needing additional financing.

And then it might be sensible to handle financing and construction questions in separate threads :rolleyes:.
 

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