Best time for a renovation loan

The best time for a renovation loan: real estate prizes are rising, construction financing interest rates still very favorable

Homeowners know: there is always something to be done to a house. Simply because it is fun. But also, because over time, modernization and renovation are due. In addition, many would like to have the owner-occupied house before entering the retirement age in such a way in shot that then no more too large investments are pending. In addition, the modernization is always suitable to increase the value of the property.

For all homeowner types, take advantage of historically low interest rates now to tackle a modernization with a renovation loan. Even if the construction interest rate has risen slightly recently, it is still close to the low interest rate record. Modernizing a property is an investment in the future: As property prices continue to rise, modernization can increase the value – and thus your own assets – of a property. If you're planning for retirement, investing in your own home today can ensure that you won't incur any major costs during retirement and you can then live worry-free in a rent-free home that has been refurbished for the long term.

Installment loan or construction financing loan as a renovation loan?

Even if many speak of a renovation loan. A renovation loan in the true sense of the word does not exist as a credit product. Two different types of loans are available for modernization and renovation: an installment loan or a construction financing loan. Which of the two forms of credit is the most suitable, always depends on the amount of the planned investment and the type of modernization or. Redevelopment:

  • Who would like to have a new kitchen, old against new furniture exchange or in the own cellar a well-being oasis with Sauna and Fitnessraum would like to install, which needs a rate or. Consumer loan.
  • Construction financing loans are applied for to invest in the substance of a property.
  • The installment loan is only an option for investments in the substance,if less than 50.000,- loan amount are needed. Also with this credit form the interest rates are currently very low and one has up to 84 months time – thus up to 4 years to repay this completely.

Fulfilling housing wishes with an installment loan.

Since the installment loan is also one of the simplest bank products, the conclusion is usually uncomplicated and fast possible. To apply for an installment loan, you need the following documents:

  • the identity card (copy)
  • the salary slips of the last 3 months (in copy)
  • Bank statements of the salary account of the last 5 weeks (in copy)
  • and the loan application in the original

This can also be done quickly and easily via bank-independent online intermediaries such as ACCEDO AG, which also specializes in construction projects (see also: ACCEDO installment loan). ACCEDO also offers particularly convenient transmission of the documents required for an installment loan.

Any investments that allow you to modernize or rehabilitate the substance of your home can be particularly well financed with a mortgage loan (i.e., traditional construction financing). Construction financing can be:

  • Energy measures such as insulation or heating systems
  • the roof conversion, the extension or the garage with attic
  • or age-appropriate and barrier-free conversions.

Here it applies to examine whether these financings are to be converted still more favorably with an interest-subsidized credit of the KfW bank. This exam is taken by a bank, a financing broker or an online intermediary specialized in construction financing. In any case, before applying for a KfW loan or grant, you need to be well informed. This is because all KfW subsidy programs are backed by clearly defined specifications – especially for energy-efficient renovations. Due to the currently very favorable interest rates on building loans, it may even be possible to save little with a KfW loan, but in return you will have to fulfill higher requirements, which basically make the renovation more expensive.

1. Barrier-free and age-appropriate conversions.

If the bathroom is getting on in years? The kitchen not age-appropriate? Building entrance or doors not wide enough and stairs too narrow? Then you can get an interest-subsidized loan up to 50.000,- Euro from the KfW. If the investment is higher than 50.000, – Euro, then takes over z. B. a classic annuity loan the remaining amount. You can finance particularly cleverly if you combine KfW loans: z. B. the program "age-appropriate rebuilding" with a KfW loan from the program "energy-efficient refurbishment". This is how you can ultimately renovate a house from the ground up and at the same time enjoy extremely favorable interest rates.

2. Energetic renovation to meet the new standards.

A special measure to preserve the value of an older house are all investments that concern the energetic standard. Not only that one comes in such a way into the possession of an energy document of identification, which increases demonstrably the value of a real estate. The savings on energy bills over the years also more than pay for themselves. KfW provides low-interest subsidies for loans of up to 100.000 euros if you insulate the roof and walls, upgrade the old heating system to the latest standards and install new triple-glazed windows. Prerequisite: the property was built before 1.02.built in 2002.

3. Create modern living space.

Old houses often do not offer the opportunities that are expected today. The rooms are too small. An open kitchen-dining room with direct access to the garden was not a standard in the past. And also the connection from the inside to the outside through oversized patio doors, conservatories and dormers with balconies were rare in the past. Even the today usual double garage was from few decades still the exception.

In the case of these measures, which concern the pure quality of living (z. B. the enlargement of rooms, the addition of a balcony, the creation of a double garage, the winter garden), it is to be examined whether one does not need also with something own contribution only small financing sums, which are then uncomplicated with an installment credit to be converted.

Build up assets for tomorrow with a renovation.

Who upgrades an old real estate accordingly, can secure not only the real estate price for years, but build up at the same time meaningfully fortune. Because such houses do not lose value – rather the opposite. For old houses not only have a special charm but also find many lovers, if you want to sell them at some point. If the heating system is also renewed in the course of these modernization measures, z. B. in addition to the KfW loan, you can also apply for the Bafa subsidy. And if a photovoltaic system is also installed, KfW has another subsidy program on offer for this purpose.

Because of these many possibilities, an intensive research and consultation is necessary. Because often the financing options then determine the framework and scope of the rehabilitation measures that are then actually carried out. In some cases it even makes sense to invest more than originally planned. Because some redemption-free subsidies and interest-subsidized reorganization loans are aabhängig of the investment sum.

The smart renovation loan consists of many building blocks.

Comprehensive refurbishment and modernization consists of many building blocks: own funds, interest-subsidized loans, redemption-free subsidies, home savings, Wohn-Riester and classic annuity loans. In this way, you not only finance intelligently, but also build up higher assets for the future. It goes without saying that such a construction financing concept for a renovation and modernization financing requires particularly expert, but also bank-independent, advice.

Often it is the intelligent mixture of different credit offers and bundling of the reorganization, modernization and rebuilding measures, which by the use of the current still extremely favorable credit environment the maximum at dwelling value, future security and increase in assets brings out.

All homeowners whose property is aging should not miss this opportunity. Take advantage of the opportunity to discuss your options for a renovation loan calmly and comprehensively with an ACCEDO construction financing advisor. Of course free of charge and without obligation. This is the ACCEDO service promise.

Who informs itself, finds fast many promotion possibilities Baufinanzierung. To evaluate these and bring them into a coherent construction financing concept is the task of a Baufi expert

There are a variety of more or less known funding opportunities. Finding them and combining them cleverly is the art.

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