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The KfW “Young Buys Old” funding aims to encourage young families to purchase and renovate old properties. But strict conditions and high costs provoke criticism.
Frankfurt – With the “Young Buys Old” program, KfW is trying to encourage young families to renovate older properties for energy efficiency and at the same time support the energy transition. But despite low interest rates and promotional loans, there is a hail of criticism: experts say it is too complex, too expensive and simply not affordable for many.
KfW loan for middle-income families
The “Young Buys Old” program is aimed at families with a household income of a maximum of 90,000 euros per year and offers KfW loans at particularly low interest rates for the purchase and renovation of older properties.
According to the KfW program, the maximum loan amount is 100,000 euros for households with one child and an annual income of a maximum of 90,000 euros; If you have three or more children, the loan can be up to 150,000 euros. Depending on the term and interest rate commitment, the interest charge can even be less than one percent.
Efficiency House Standard 70: High hurdles for the promotional loan
But the low interest rate offer has its price. In order to be approved for a loan, buyers must achieve the so-called Efficiency House Standard 70 (EH 70), which means investing in the energy efficiency of the house. This means that the property must use at least 30 percent less energy than an average building according to the Building Energy Act.
This requires good insulation of the building, heating that is powered by 65 percent renewable energy, and a controlled ventilation system. Thermal bridges must be avoided, which must be confirmed by thermal bridge proof.
High renovation costs could slow down the KfW “Young Buys Old” funding. (Symbolic image) © Daniel Bockwoldt/dpa
Cost trap for young families: renovations often exceed the budget
The core point of the criticism is that the funding requires a very demanding energy-saving renovation. Loud Handelsblatt The KfW Bank is holding back from an official statement, but confirms that “KfW is in principle in contact with the responsible ministries on all of its promotional products”. The “Young Buys Old” program is still being launched on the market.
Michael Koczwara, funding expert at Schwäbisch Hallcomments on the practical implementation in the report and emphasizes that the requirements are overwhelming for many families: “The complexity in the first phase is overwhelming for many,” he explains in the report.
Another issue that makes families hesitant is uncertainty about future financing. “There is uncertainty about what will happen with the financing afterwards. In the end, the funding could be reclaimed,” says Koczwara. The requirements for energy-efficient renovations in particular deter families who often cannot afford such an investment.
“A good goal, but far too complicated”
Construction financing consultant Birgit Weber from Passover & Crumble also criticizes the high requirements for energy-efficient renovation. She explains that families interested in this program often buy an old house with a poor energy efficiency rating and then have to take complex measures to meet the EH 70 standard. She explains to Focus Online: “In order to achieve the standard of an Efficiency House 70, I not only need new windows, but also a heating system that is powered by 65 percent renewable energy.” A renovation of this extent is practically only possible in new buildings and requires “an incredible amount Money”.
Weber also questions whether the program is really realistic for the target group. “The overlap is simply too small.” Many young families who want to buy an older house cannot afford the high renovation costs. “A goal that is good in itself is once again made far too complicated. This is pure eyewash. Young families simply won’t be able to afford it.”
