Bavaria house building subsidy options

Well, building a house with approx. €400,000 equity and currently €5,600 net income is tight?

Where do you see 400? I see 140, of which 70 are supposed to be used...

Addendum: ah, I see - you included the land. In any case, I would also get started.

That's exactly what I mean, cooking the books

They have to pay 500k and don't even have 100k available - all the "oh it's great that you have the [property]" etc. doesn't help, at the end of the day, they need 400k from the bank

That's exactly what I mean, cooking the books

They have to pay 500k and don't even have 100k available - all the "oh, it's great that you have the plot of land" doesn't help at all, at the end of the day, they need 400k from the bank

1. We don't even know what kind of house is going to be built. Maybe it costs €400k, maybe €800k. 2. Therefore, we also don't know what kind of loan is needed. 3. If it's a cozy little off-the-shelf house, it costs €400k plus incidental costs + outdoor facilities etc. Based on 3, with total costs of €500k all in, €400k could be financed. That's currently from €1,400 monthly payment (top conditions due to the very high equity contribution) including repayment.

With a net income of €5,600, €4,200 remain for living expenses. What exactly is so tight about that - please be specific? Even with one child (or two), it is easily manageable.

What do you actually think is paid in rent in an area with a land value of €500? Would €1,500 rent also be too tight, so that the original poster with wife and child is better off living on the street because they actually can't afford the rent?

Please just come down from your pessimist position. Banks are currently licking their lips over such clients - solid income of a young family, good to very good real estate location, high equity contribution. If not here, then where else should people still build? And if it takes another 10 months of planning time until construction begins, the two will have saved almost another €30k in additional equity.

I see it completely differently than nordanney.

This will be a tight or unpleasant situation if you need so much money from the bank!
The times of 1 and 2% interest are over, with 400k, 3% (which by the way, at the moment, you can’t even get if you really have good equity >60%, not like here, where you don’t even have 20%) means 1k in interest per month, what do you pay down then? 400€? and the loan is paid off in just 50 years.

No, you have to rather expect at least 2k and in the end, you still pay a lot of money to the bank that is licking its fingers (no one really believes that).

For a single-family house, the equity is quite low, the income OK - since family planning is still pending, you have to expect a temporary loss of one income.

I find the last point about saving 30k per year most interesting (although the question arises why that has not worked in the past), my approach would be to wait another 3 years, use the time for planning, and then only need 300k from the bank.

not like here, not even 20% has

Calculation?

the loan paid off in only 50 years.

Calculation?

No, they should rather expect at least 2k

Calculation?

I ask so persistently because I already come to different numbers roughly, I don't even need to start Excel.

The property is also equity, so nothing with 20%. And I don’t see 50 years to repay with an annuity loan either, where should those come from? You don’t repay linearly!

If your argument is based on a calculation error, a correction would be desirable. The numbers have to be correct in the discussion, a difference of €600/month is no basis.

We financed ourselves very conservatively at 3.1% back then, but even WE would do THAT given the initial situation. Unless a 1 million villa is supposed to be built on it. But I don’t see that!?

The days of 1 and 2% interest rates are over, with 400k, 3% (which, by the way, you currently can’t even get,

I’m calculating with 3.5%.

if you really have good equity >60%, not like here, not even 20%)

Total investment costs possibly €750k including land. Possible equity approx. €400k (if not only €70k is used, otherwise €320k) = 53%. However, we don’t know anything about the actual calculated construction costs. If a shack worth a million plus land is going to be built, the ratio is of course different.

1k interest per month, how much do you repay then? 400€? and the loan will be paid off in just 50 years.

At 1.5% repayment it takes 35 years, so the loan is mathematically gone before retirement.

For a single-family house, the equity is quite low,

See above – equity €400,000 at the age of 30 years.

I find the last point about saving €30k per year the most interesting (although the question arises as to why this hasn’t worked in the past)

€140,000 cash lying around, where did that come from again? Maybe saved up? : What do you say about the concrete numbers? Do you stick to your opinion with your false facts? A €400k loan with 5% annuity is €1,667 – with only one percent repayment (which would also be conceivable) it is a flat €1,500 and 44 years term. One could work against it with special repayments or repayment changes to effectively reduce the term.