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.
KfW Loan
€100,000 (30 years term, 20 years fixed interest rate at 1.5% nominal interest) €18,000 interest (outstanding balance €26,000)
Bank
€100,000 (20 years fixed interest rate at 2% nominal interest) €29,000 interest (outstanding balance €44,000)
In addition, there is a €11,000 repayment grant with KfW 40 (in Baden-Württemberg) or €6,000 with KfW 55.
This makes a significant difference for me.
€100,000 (30 years term, 20 years fixed interest rate at 1.5% nominal interest) €18,000 interest (outstanding balance €26,000)
Bank
€100,000 (20 years fixed interest rate at 2% nominal interest) €29,000 interest (outstanding balance €44,000)
In addition, there is a €11,000 repayment grant with KfW 40 (in Baden-Württemberg) or €6,000 with KfW 55.
This makes a significant difference for me.
T
toxicmolotof20 Apr 2016 16:00But you do know that you can only apply for a subsidized loan up to the value of the residential unit to be constructed, right?