If you have your own property, then you know that something must always be done. Here is a small repair, as a repair. If the work is to a certain extent, then it should not be a big problem to handle it. But at some point the time has come when a small repair is no longer sufficient. Then it must be properly modernized or renovated to maintain or even increase the value of the property.
In addition, if you do not just use your property on your own, but you own a property that you rent, then you have no choice but to initiate a modernization at regular intervals. Otherwise, you can no longer justify the rental prices that you demand from your tenants and would have to reduce them. Or your tenants move out and you have a vacant object. The death for any owner as an unused property is quickly expose.
Unfortunately, modernization not only makes sense but also costs a lot of money. For anyone who comprehensively modernizes, can close here and there with a bag of gypsum and a little water here and there a few small holes. Rather, as part of a modernization extensive work on the property, which are time-consuming and sometimes cost many thousands of euros.
If you have not saved this money in advance, it is important to find a suitable loan for the modernization. If you are not just focusing on simple installment loans and real estate loans, but are also using government subsidies, your modernization loan can be a fairly inexpensive proposition. Provided you meet all the requirements for state funding and apply for it in good time. You can find out how this works here.
Intrasavings bank is happy to help
If you achieve a better energy efficiency by modernizing your property or your property is converted age-appropriate, you have the right to use a state subsidy under certain conditions. This usually comes from Intrasavings bank and is provided in various programs.
Most popular are all those support programs that require energy-efficient refurbishment and modernization. In this regard, there are four different programs that bring different content.
For example, Funding Program 151 will provide you with a discounted loan of up to € 100,000 if you achieve a certain level of efficiency. With Program 167, you get a discounted loan of up to € 50,000 when you install a new heating system that uses renewable energy. Program 431, on the other hand, promises a 50% reimbursement of the costs of modernization planning.
As you can already see from these few remarks, each program offers different approaches. As a layman, there is little chance of applying for the necessary funds for the modernization loan in the right place. We therefore recommend that you talk to Intrasavings bank in advance, who can tell you exactly what funds you can call up at which point. So you are always on the right side and do not have to worry about getting lost funding.
When can grants be requested?
That you can only use funds for your modernization loan, if the modernization improves the energy efficiency of the property, or if you are converting to age-appropriate, you already know. However, keep in mind that you will only receive the funding if you apply for it before upgrading.
To apply, you must submit cost estimates and details about the upgrade. The modernization must be carried out by companies belonging to the construction industry and able to bill properly. On top of that, you have to make sure that the funds from the funding programs do not disappear in dubious channels. Here is very closely looked at what happens to the money, because it is tax money that can not be wasted recklessly.
What to do if the funding is insufficient?
If you find yourself in a situation where funding is insufficient to carry out a complete refurbishment, you have the option of receiving an additional loan for refurbishment at any time. Here you can choose between a classic installment loan or a modernization loan.
We recommend that you compare both loan options. You will see that each variant has its own advantages and disadvantages, but in spite of all this is well suited as a loan for a modernization.
An installment loan can always make sense if the money from the loan for the modernization should not flow directly into construction measures, but perhaps in little things such as decoration, furniture, floor coverings, wallpaper or the like. If you take out an installment loan, you do not have to tell the bank what the money should be used for. This gives you the advantage that you can freely dispose of it. In addition, interest rates are low and you are not tied to a fixed loan amount. Furthermore, it is of great advantage that the bank can not be entered in the land register in the case of a installment loan. Since you do not have to tell the bank that you need credit for a modernization, the bank does not know that you have a property that can be considered as collateral.
It looks a little different if you opt for a modernization loan. This is a dedicated loan that works like a real estate loan. They are offered very large loan amounts in combination with very long terms, but must agree that the lending bank enters the land register and considers your property as a pledge. If you are unable to service the installments, the bank will be able to pledge and sell your property so that the outstanding amounts can be paid.
But you will save yourself other collateral, which you would have to offer for a larger installment loan, including in the form of a guarantor or material collateral such as capital-forming insurance or similar things. Decide wisely which step you would like to take in financing and think in advance which loan option would seem most suitable for you. So that your modernization does not fail at the end of the money and you can still enjoy your property in many years.