Hello everyone,
I am currently in the planning phase of building a house. Right now, I am considering whether and how it would be possible to create a second living unit in the basement in order to secure two affordable KFW loans of €100,000 each. I would prefer to invest more money into the house rather than pay higher interest costs to the bank. Plus, you also receive a repayment grant for each loan.
The house has two full floors and is situated on a relatively flat plot with a height difference of 0.5m (1.6 feet). The basement is therefore entirely below ground level. The current layout of the basement is shown in UG_bisher.pdf. The window at the bottom left is planned to have a light well. Structural work would include an external basement stairway, an entrance, walls, and preparations for a bathroom and kitchenette. I understand that the second living unit is supposed to be very small. It is not intended for rental, but rather for the children in the future. Therefore, doors will not be installed everywhere yet.
What do you think about my plan and my design in UG_neu.pdf? Or is this unrealistic, and do you have other ideas?
Thank you very much.
I am currently in the planning phase of building a house. Right now, I am considering whether and how it would be possible to create a second living unit in the basement in order to secure two affordable KFW loans of €100,000 each. I would prefer to invest more money into the house rather than pay higher interest costs to the bank. Plus, you also receive a repayment grant for each loan.
The house has two full floors and is situated on a relatively flat plot with a height difference of 0.5m (1.6 feet). The basement is therefore entirely below ground level. The current layout of the basement is shown in UG_bisher.pdf. The window at the bottom left is planned to have a light well. Structural work would include an external basement stairway, an entrance, walls, and preparations for a bathroom and kitchenette. I understand that the second living unit is supposed to be very small. It is not intended for rental, but rather for the children in the future. Therefore, doors will not be installed everywhere yet.
What do you think about my plan and my design in UG_neu.pdf? Or is this unrealistic, and do you have other ideas?
Thank you very much.
We are currently planning two residential units, including a granny flat for my parents. Due to the size of the house, some plots of land were not suitable.
We might only take out one KFW loan because that fits better with our desired monthly payment. You have to repay the KFW loan at a fixed interest rate. That doesn’t work out well for us, as the rest of the total financing amount still needs to be covered.
We might only take out one KFW loan because that fits better with our desired monthly payment. You have to repay the KFW loan at a fixed interest rate. That doesn’t work out well for us, as the rest of the total financing amount still needs to be covered.
T
toxicmolotof21 Apr 2016 13:30Has construction already started?
T
toxicmolotof21 Apr 2016 13:33Bellanina schrieb:
We might only take out a KFW loan because it fits better with our desired monthly payment. With the KfW loan, you have to repay it at a certain percentage rate. That doesn’t work for us since the rest of the total amount also needs to be financed.If it fails because of that, you should urgently review your building plans. The loan term is very moderate at 30 years with a repayment rate of around 2,x%.
It never makes sense to approach any loan (including bank loans) with a lower repayment rate.
Bellanina schrieb:
We might only use a KfW loan because it better fits our desired monthly payment. With a KfW loan, you have to repay a certain percentage. That doesn’t work out for us, since the rest of the total amount also needs to be financed. I don’t quite understand that. We are also planning with a €300K (approximately $320K) KfW loan, fixed for 20 years, with 2 repayment-free years and a 30-year term. The repayment is manageable, especially since we wouldn’t plan for more than 30 years anyway.
MarcWen schrieb:
So, I can understand both sides here... but I wouldn’t want to exaggerate and assume bad intentions from the OP.
...In the original post, second sentence! Just because of the money, I don’t want to imply anything else.