100% financing or would you rather wait longer?

Hello,

we are considering building a house. We have set a limit of about €250,000 including the land; according to various calculators, with 100% financing, we would have a monthly repayment of between €1250 - €1500. Now about us: we are in our early 30s, have one child (family planning is complete :D), our monthly net income is about €4350 plus holiday and Christmas bonuses. Unfortunately, we have no equity, as one of us has been studying until now and there have also been periods of childcare, and we have only had two regular incomes for about a year. In addition, we currently have a loan repayment of about €600 for a car and BAföG, which will last about 4 more years. Are there banks that would finance us like this, or should we rather wait a few more years and save equity? According to our own calculations, a repayment of €1200 would definitely be feasible :o oh yes, currently we have €800 cold rent!

Thank you in advance for the answers and tips :)

Hello

Do you already have a plot of land? What is the price per square meter for land where you are?

How big is the house supposed to be? With a basement?

Just go to the bank with all your income and expenses and see what/how much you can get.

Best regards, Caro

Unfortunately, we do not have land, for the purchase we have to plan about €50,000, then the rest (€200,000) for the house without a basement with about 150m². However, we could also acquire land on a leasehold basis from our local municipality here, then only the development costs would apply, I think that is €20,000 plus about €120 annual lease payment, but we still need to inquire precisely at the office.

Lenny

I would recommend you first go to the bank regarding the loan.

Then you can have a few talks with builders, property developers to find out what your house will cost.

You can also start looking for plots yourself.

Always remember the additional construction and land costs.

Do you want a garage?

We are just about to start construction and proceeded like that, because the actual costs are often underestimated. The prices from house providers can often be much higher.

200,000 all inclusive? Maybe a bit tight for 150 sqm, but it could work.

Best regards, Caro

I think that definitely works with €200,000 for 150m². So, we just got quotes for a house with 135m² with a few extras like [Drempelerhähung], shutters, chimney, Energy Saving Ordinance 2009. That comes to about €150,000. And if you do the tiles and, for example, the insulation in the upper floor yourselves, you save about €10,000, but then you have to add the material costs again.

I think that's definitely possible with €200,000 for 150m². So, we just got quotes for a house with 135m² with a few extras like knee wall height increase, shutters, chimney, Energy Saving Ordinance 2009. That comes to about €150,000. And if you do the tiling and, for example, the insulation on the upper floor yourselves, you save about €10,000, but then you have to add the material costs again.

We have a quote for about €130,000 (KfW85, 135m², chimney, underfloor heating, although without shutters, but with an air system - low-cost solution, paving work, house connections). Additional costs come for kitchen, furniture, fireplace, etc. And of course the land.

However, I would advise consulting a consumer advice center. Especially regarding 100% financing. Advantage – the consumer advice center is independent and shows everything as it is, without embellishments. We received very detailed advice there; all risks were brought to light and weighed. A consultation there costs almost nothing compared to companies. You could commission the consumer advice center to find suitable financing and a bank. A financial advisor then approaches banks themselves (of course has their own contacts) and can exert some pressure, makes comparisons, etc. Asking a bank directly – it may look nice, but whether you should trust them, I have doubts – they usually only think about their own advantages (in my opinion).