Refurbishment pays off: with the right subsidy to your dream home

The last two years have had a strong impact on the real estate and financing market. The real estate market was characterized by comparatively high mortgage interest rates combined with significant interest rate fluctuations. In addition, discussions about tightening the Building Energy Act caused uncertainty. Announced renovation obligations and stricter energy efficiency requirements led to falling prices for older properties and properties in need of renovation. But what is the current situation?

The time to buy a property is currently favorable. Prospective buyers are benefiting from the comparatively lower interest rates and the fall in prices in many places, which makes financing easier. In addition, subsidies are available not only for new builds, but also for renovations or the purchase of existing properties.

Among the best-known subsidies are the programs of the Kreditanstalt für Wiederaufbau and the Federal Office of Economics and Export Control, which can include both grants and low-interest loans and differ greatly in their purpose. There are subsidies for the purchase of a new owner-occupied property as well as for the age-appropriate conversion, purchase or energy-efficient refurbishment of an existing property. It is also important to keep an eye on state and regional programs. Many prospective buyers are often unaware of these due to their low public profile.

"Prospective buyers should obtain information as early as possible, as subsidy programs can have a direct impact on affordability or the available purchase budget. In some cases, the comprehensive consideration of subsidy programs makes a property purchase possible in the first place. Only if prospective buyers know in advance when and for what type of property they will receive which subsidies and to what extent can they make their search more targeted and often more comprehensive. In addition, some subsidy programs must be applied for before the purchase," says Christian Neteler, branch manager at VON POLL IMMOBILIEN Hannover.

Prospective buyers can obtain personal advice from experienced subsidy consultants at VON POLL FINANCE, for example. The financing experts examine over 6,000 subsidy programmes across Germany in the areas of building, buying and modernizing and help not only to identify the right subsidy, but also to apply for it.