In the context of financing, a list for modernization costs is needed as an overview of the possible costs for orientation purposes. This makes it possible to calculate the financing for modernization. Such a list of modernization costs is not only the basis for the financing discussion at the bank, but also gives the homeowner a clear assessment.
Plan the financing with the statement of the modernization costs
Whether you want to modernize a house you have lived in for a long time, a condominium or plan to buy an older house and then modernize it, it is essential to have a breakdown of modernization costs. If the energy efficiency of the house should be improved and a promotion with favorable KfW credits is planned, such a statement about modernization costs is even part of the application.
The list of modernization costs is of course not 100 percent exactly the amount that will ultimately be used for renovation or modernization. But such a list provides a good overview. In the case of more extensive or larger modernization measures, an architect or a building expert should in any case take a look at the planned measures. It can then assess whether the homeowner's wishes and ideas can be realized or whether a change of plans is necessary.
Which modernization measures are the most common?
Modernization measures are not only carried out on private residential buildings or in condominiums, but also on rental properties. Landlords have the possibility to claim the modernization costs at the tax office. In addition, they can pass on the costs to the tenants, provided that they meet certain requirements for this purpose.
The most common modernization measures and the approximate costs:
- Insulation of the roof ca. 50 – 200 €/m²
- Roofing from 100€/m²
- Extension of the roof depending on expenditure approx. 1.000€/m²
- Facade insulation from ca. 150€/m²
- Photovoltaic system from ca. 5.000€ per installation
- Windows new from ca. 500€ per piece
- Heating from ca. 10.000€
Many other trades can be done in the context of modernization. In the case of old houses, however, it is usually the roof, windows and heating system that are modernized first, as economic consumption also depends on these.
Who would like to bring its house economically up to date, should make exactly for these reasons a list for modernization costs. This will make it much easier to explain what measures are planned when talking to the bank about the modernization loan.
Financing the work after the list modernization costs
If you look at the individual costs, you can quickly see that an energy-efficient renovation or even just a thorough modernization will cost between 50.000€ and 100.000€ can be incurred. The tax benefits for private homeowners in owner-occupied housing are rather modest and amount to about 1200€ per year. It is pleasant that the modernization costs can be made more bearable through favorable loans and subsidies.
The best way to get funding is in the context of energy efficiency. The Kreditanstalt fur Wiederaufbau (Reconstruction Loan Corporation) has a special program for this called "energy-efficient refurbishment". If, for example, the heating system is to be modernized, the roof insulated or the exterior walls insulated, this is the right place to start. KfW loans are applied for through the banks. The subsidies are very low interest and are granted with an initial grace period. If the homeowner achieves one of the standards for KfW efficient houses through the modernization measures, a repayment subsidy can also be granted, whereby the state assumes part of the costs.
Similar funding programs are available from KfW for accessibility and age-appropriate renovations. Homeowners, who want to use a barrier-free bathroom in the age, can amount to it for example.
The right time for modernizations
Not only with an older house, but also with a new building modernizations become due after some years, in order to remain economical. This is also the reason why as a homeowner you always have to build reserves, because after about 10 years the roof renovation will be due or after ca. 20 years ago the windows. Similarly, the heating system, newly installed today, will no longer be economical and work properly after 20 years. If the reserves are not sufficient, of course, a normal consumer loan or, for a higher sum, a real estate loan can be considered.
The statement for modernization costs will usually include the works that will be carried out by specialized companies. It should not be forgotten, however, that equity capital is also important here and that it can be contributed in the form of personal contribution. The so-called muscle mortgage saves costs in financing and thus reduces the monthly burden. In order not to be "underpaid" here, there is the possibility to have the own work certified by an expert such as the building planner or the house construction company. For this purpose, the total costs are applied, the material costs are deducted and thus the labor wage is determined, which is then considered as own contribution. Who would not like to make everything completely, can let thus also a portion show up.
In order to show the own work when listing modernization costs, all trades are listed and noted according to total costs, material costs and resulting labor costs. The costs saved by doing it yourself could be used elsewhere where, for example, you cannot do it yourself for technical reasons. They have an impact on the financing, even if it should be a subsidized loan.
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