Homeowners know that there is always something to be done to a house. Simply because it's fun. But also, because in the course of time modernization and renovation are pending. In addition, many people want to have the house they own in good condition before they retire, so that they don't have to make any major investments. Moreover, the modernization is always likely to increase the value of the property.
For all homeowner types, take advantage of historically low interest rates now to tackle a remodel with a rehab loan. Even if the construction interest rate has risen slightly in recent times, it is still close to the low interest rate record. Modernizing a property is an investment for the future: as property prices continue to rise, modernization can increase value – and thus your own wealth. If you are planning for retirement, you can invest in your own home today to ensure that no major costs will be incurred during retirement and that you will be able to live carefree in a rent-free house that has been renovated for the long term.
Installment loan or construction financing loan as a renovation loan?
Even if many speak of a rehabilitation loan. There is no such thing as a reorganization loan in the true sense of the word. There are two different types of loans 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 renovation. Redevelopment:
- Anyone who would like to have a new kitchen, exchange old furniture for new furniture, or install a wellness oasis with a sauna and fitness room in their own basement will need an installment or construction loan. Consumer credit.
- 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,- credit amount is required. The interest rates for this type of loan are also currently very low and you have up to 84 months, i.E. Up to 4 years, to repay it in full.
Fulfilling housing wishes with an installment loan.
Since the installment loan is also one of the simplest bank products, it can usually be concluded quickly and without complications. To apply for an installment loan, you need the following documents:
- The identity card (in 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 original loan application
You can also do this quickly and easily via bank-independent online brokers 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.
All investments that modernize or renovate the substance of the house can be financed particularly well with a mortgage loan (i.E., with classic construction financing). Construction financing can:
- Energy measures such as insulation or heating systems
- The roof extension, the annex or the garage with attic
- Or age-appropriate and barrier-free conversions.
Here it is important to check whether these financings can be implemented even more favorably with an interest-subsidized loan from the kfw bank. This check is carried out by a bank, a financing broker or an online intermediary specializing in construction financing. In any case, before applying for a kfw loan or a grant, it is important to be well informed. All kfw subsidy programs are based on clearly defined requirements, especially for energy-efficient renovations. Due to the currently very favorable interest rates on building loans, it may even be possible to save a little with a kfw loan, but in return you will have to fulfill higher requirements, which will make the renovation more expensive in principle.
1. Barrier-free and age-appropriate remodeling.
If the bathroom is getting on in years? Kitchen not suitable for the elderly? House entrance or doors not wide enough and stairs too narrow? Then you can take out an interest-subsidized loan up to an amount of 50 percent.Apply for 000,- euro at the kfw. If the investment is higher than 50.000,- euro, then z takes over. B. A classic annuity loan the remaining amount. Financing can be particularly clever if you combine kfw loans: z. B. The "age-appropriate conversion" program with a kfw loan from the "energy-efficient renovation" program. 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 refurbishment to meet the new standards.
A special measure to preserve the value of an older house is any investment that affects its energy standard. Not only does this give you an energy certificate, which demonstrably increases the value of a property, but it also helps you to find and cleverly combine the best energy-saving solutions. The savings in energy costs over the years also more than pay for themselves. The kfw provides subsidies of up to 100 percent.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 january 2009.02.Built in 2002.
3. Creating modern living space.
Old homes often don't offer the options you expect today. The rooms are too small. An open kitchen with direct access to the garden was not standard in the past. And also the connection from the inside to the outside through oversized patio doors, winter gardens and dormers with balconies were rare in the past. Even the double garage that is common today was the exception a few decades ago.
For these measures, which concern the pure quality of living (z. B. The enlargement of rooms, the addition of a balcony, the construction of a double garage, the winter garden), it is to be examined whether one does not need also with some own contribution only small financing sums, which are then uncomplicated with an installment credit to be converted.
Building up assets for tomorrow with a renovation.
If you upgrade an old property accordingly, you can not only secure the price of the property for years to come, but at the same time build up wealth in a sensible way. Because such houses do not lose value – rather the opposite. Because old houses not only have a special charm, but also find many lovers, if one would like to sell them at some point. If the heating system is also renewed in the course of these modernization measures, the z. B. In addition to the kfw loan also the bafa subsidy. And if we also install a photovoltaic system, the kfw offers another subsidy program for this.
Because of these many possibilities, intensive research and consultation is necessary. Because the financing options often determine the framework and the scope of the renovation measures that are actually carried out. In some cases, it even makes sense to invest more than originally planned. Some grants and low-interest renovation loans are dependent on the amount of the investment.
The intelligent renovation loan consists of many building blocks.
A comprehensive renovation and modernization consists of many building blocks: own funds, interest-subsidized loans, redemption-free subsidies, building savings, housing riester and classic annuity loans. So not only are you financing smart, you're building higher net worth for the future. It goes without saying that such a construction financing concept for renovation and modernization financing requires particularly expert, but also bank-independent, advice.
It is often the intelligent mix of different loan offers and the bundling of renovation, modernization and conversion measures that brings out the maximum in residential value, future security and asset growth by taking advantage of the currently still extremely favorable credit environment.
All homeowners whose property is getting on in years should not miss out on this opportunity. Take the opportunity to discuss your options for a renovation loan calmly and comprehensively with an ACCEDO construction financing advisor. Free of charge and without obligation, of course. That is the ACCEDO service promise.
There are a large number of more or less well-known subsidy options available. Finding these and combining them cleverly is the art.