The refurbishment and modernization of properties are crucial measures for increasing the value and sustainable management of existing properties. Whether it's installing new windows, insulating the façade or replacing the heating system - such projects often require considerable financial investment. Building societies offer attractive financing options for this, which we would like to take a closer look at here. Particularly interesting are the combinations with development loans from the Kreditanstalt für Wiederaufbau (KfW).
Use of home loan and savings contracts for renovations:
In principle, existing home loan and savings contracts can be used for renovation and modernization projects. A particular advantage results from the coupling with KfW subsidized loans, whereby very favorable financing conditions are possible. However, building societies also offer special immediate financing without existing home loan and savings contracts, which are characterized by long-term terms and often lower monthly charges.
Building societies or partner banks grant loans to finance measures such as the modernization, renovation or refurbishment of properties. A special mechanism here is the building society savings contract, which is saved during the term and ultimately replaces the advance loan.
Advantages of renovation loans from building societies:
In addition to special conditions, renovation loans from building societies offer various other advantages. For example, the monthly charges are often lower than with conventional installment loans, which allows for a longer term. Although such loans are often more expensive than installment loans, they offer flexible and usually longer terms, which is a decisive criterion for many investors.
Additional advantages:
For loan amounts of up to 50,000 euros, building societies often do not require a land charge to be entered in the land register, which can save costs of around 0.8 to 1.2 % of the loan amount. In addition, projects with comparatively small financing volumes can also be realized that a bank would not normally finance via a classic property loan, such as the renovation of a kitchen or smaller conversions.
Conclusion:
For real estate investors, renovation and modernization loans from building societies offer flexible financing options that can be planned for the long term. The combination with development loans such as those from KfW can bring further economic advantages. Particularly noteworthy are the offers from Wüstenrot and Alte Leipziger, which impress with their attractive conditions. Investors should carefully examine the various options and keep an eye on the specific requirements and possibilities of their projects.
Please contact me if you have any questions on this topic.
Kind Regards,
Matthias Holzmann
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