It starts in most cases quite harmless – actually, only the corridor should be repainted. Since the color break to the other rooms but too precipitous, they should also be painted. And if already new color, then another time. And so that fits better with the furniture, is also equal to a new sofa in the house.
Quickly, the idea of a renovation leads one step to the next, only the dreams of the newly designed home is unfortunately offset by a gap in financial resources. On the other hand, the home should be a place where the residents feel good and do not always feel like living in the second best solution.
Renovation loan comparison
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Credit for renovation of house, apartment or apartment
To save for ever endless, until the new living world can be realized, is completely meaningless at low interest rates. But you can also turn around the interest rate spike, and use the low interest rates to beautify the four walls without taking over economically.
The renovation loan – one word, two meanings
The term “renovation loan” or “home loan” is used differently. Colloquially, it means that a consumer takes a installment loan with the purpose of the renovation. As can be seen from the introduction, a renovation covers a whole range of innovations in the home or apartment. Often, the next step results from one step, ending in the purchase of new furniture. It does not have to be that way, but it can.
Bank side, the renovation loan, however, is different, from the point of view much more closely occupied. Renovation loans are installment loans, but with much cheaper interest rates. Depending on the bank, they move from the maximum loan amount between 50,000 and 100,000 euros. The background to this is that these loans are only granted to real estate owners and are subject to “renovation” earmarking. However, the banks waive the registration of a mortgage. The interest rate varies between home loan interest rates and interest rates on a classic installment loan. Here are three arbitrarily selected examples:
|Bank||Installment loans effectively pa||Renovation loan effectively pa|
|Camibank||2.45% – 8.49% (depending on credit rating)||2.45% – 3.69% (depending on credit rating)|
|PAR Bank||3.69% – 5.79% (depending on the term)||3.58% – 4.29% (runtime dependent)|
As a purpose, all measures are provided that bring a renovation or renovation on the object with it. The purchase of furnishings does not count.
A few tips on the edge
The more extensive a refurbishment turns out, the more expensive it will be – that is indisputable. If craftsmen are involved, the costs can be reduced if the real estate owner buys the materials himself and does not have them done by the commissioned company.
The costs for the craftsmen, also for the rent of machines, can be tax deducted as “household-related services”. The amount is limited to 20 percent of the craftsman’s costs, up to a maximum of 1,200 euros a year. For example, activities that fall under this term are:
- Work on interior and exterior walls, roof, facade
- Repair and replacement of windows, doors, floor
- Repair, maintenance or replacement of heating systems, electrical, gas and water installations
- Modernization of kitchen or bath
The deductibility refers exclusively to the activity of the craftsman, not on the processed material. The invoice amount must also be transferred. A cash payment against receipt does not recognize the tax office.