Owners of real estate to take care of the maintenance. These include various renovation, compulsory restoration and repairs. The maintenance costs are not cheap. Are added monthly cost for property tax, waste and sewage disposal, electricity and heating costs and insurance.
Homeowners should therefore put back money for repairs and renovations. As a rule of thumb, to save a euro per square meter per month. With a 90 m² large apartment would 1,080 euros annually. The money should best be applied, because the House is older, the more costs.
The maintenance costs are often underestimatedare unfortunately. Also, it may happen that all of a sudden is a non-predictable renovation. In this case saved equity is not sufficient most of the time. You need a credit.
What loans are there?
1. housing loan
For owners, there are special housing loans that are suitable for the renovation, purchase of furniture, renovation or repair. They are similar to the concept with an installment loan; they have a flexible runtime, an income independent interest rate and an arbitrary withdrawal date. The repayment can be done in advance in the form of a special repayment without incurring costs. The financing is with the housing credit price value, because interest rates are low.
The housing loans but not always suitable. Owners should use it exclusively for smaller amounts as other home loans in part have more favourable interest rates. Also for freelancers and self-employed persons, the housing credit is only conditionally eligible because many banks require permanent employment. Still, the homeowner must provide proof of home ownership. In some financial institutions of the applicant must be also a specific net income.
Those who are interested in a home loan, should the Internetperform a comparison. So undGeld to track down the best deal can save. Because the interest rates of financial institutions are far apart for the part.
2. mortgage credit
Renovations can also finance with a mortgage loan. The effective interest rate is generally less expensive than at a residential loan. The mortgage loan is worthwhile only for larger renovations of more than 30,000 euros. Because the application of such credit is expensive. Homeowners need to protect this form of loans with a mortgage. In case of failure of payment, the Bank can seize the property. The mortgage is in the land register one maybe. The cost of land, notary ranking will have to pay the owner of the House. Therefore, the mortgage credit for smaller reconstruction is not advisable.
3. State aid
Subsidy programs of the KfW-bank offer home owning cheap loans to finance the Renovierungsarbeitenan. The interest rates for these loans are still lower than a residential loan. In some cases, the homeowners receive repayment assistance. The programs are a great incentive to invest in their own real estate. Even tenants can take advantage of the promotion.
KfW promotes only measures that make energy-efficient property. These include new Windows and doors, insulation, roof and floor slabs and improvements to the heating and ventilation system. An expert willing to pay the homeowners need to verify in advance whether the KfW criteria and whether the measure makes sense. It can happen that bank financing does not support the installation of new Windows, if not at the same time a wall insulation. The promotion is not designed for home furnishings. Also the programmes generally only apply to older real estate. Unscheduled repayments are possible in the first ten years of the term free, homeowners must be expected with costs.
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