Bavaria house building subsidy options

First of all, I don’t want to talk anyone out of anything here, I don’t know anyone personally and I also don’t have any mission or anything like that, because that is implicitly suspected. I have experienced the forum as a good advisor, so I comment when I think it might be a useful hint. I am not here to argue about other people’s problems.

Since we know far too little about the circumstances (I also allowed myself to make personal assumptions), our considerations are actually nonsense anyway, but according to my calculation

Yes, I set 70 in relation to the required 400, the plot of land is included, that’s ok, that was wrong of me! From my experience, however, the interest rate only varies marginally whether 20 or 40% equity is available. For me, the decisive factor remains the 400k loan, and that is a lot!

Since you calculated with €1400 monthly, the repayment can only be 1%, which then takes almost 50 years, you could now type it into some calculator and it might also come out as only 44 years, I just wanted to exaggeratedly show what you are binding yourself to.

The 2k simply came from my rough consideration of about 3.5% interest + 2.5% repayment = 6% of 400k = 24k/12 = 2k
that means you end up with about 25 years and thus have repaid 25 x 12 x 2 = 600k

As I said, these are all just assumptions, if the original poster provides numbers, data, facts, you can of course see what’s going on.

I may be a bit too conservative/anxious, but I see it critically to have to service such large loans with only an average income.
The much wasted money in the form of interest bothers me the most, I would try to reduce that as much as possible. For example, by needing only 300k from the bank 3 years later - but as I said, without knowing the two - basically everything being considered here is nonsense.

That overlapped just now, I only just read the response from nordanney. I don't quite understand where there are supposed to be "false facts" on my part? You are calculating my numbers yourself, how did you arrive at 1400 with 3.5+1.5?

Yes, I related 70 to the required 400, including the plot of land, that's fine, that was my mistake! From my experience, however, the interest rate only varies marginally whether you have 20 or 40% equity.

What experience? Are you a financing broker?

For me, the decisive factor remains the 400k loan, and that is a lot!

That would be approximately the average financing amount in 2023 for a single-family house. By the way, "a lot" is just a word if you don't explain it or give relations. For a millionaire, that is very little; for a citizen receiving basic income, very much, and so on.

Since you calculated with €1400 per month, the repayment can only be 1%, then it takes almost 50 years, you could now enter it into some calculator and it might also come out to only 44 years, I just wanted to show in an exaggerated way what you are tying yourself to.

But you missed the mark with that.

but I see it critically, such large loans with only average income

the income is OK

So what is it now? Ok or not? Is €4,000 per month for living expenses too tight?

Maybe I am also a bit too conservative/fearful,

No, you're out of touch and unrealistic.

What bothers me most is the wasted money in the form of interest, I would try to reduce that as much as possible. For example, by needing only 300k from the bank three years later

When it comes to money soberly, renting is the cheaper option (calculated over the entire life cycle of the house including maintenance). But life doesn’t only consist of money, but also quality of life. Apart from that, the house might cost not €500k but €600k in three years. Then you are back in the same situation and would have to advise against building a house. What you do not consider at all, however, is the comparison between interest and cold rent. The cold rent for a comparable property with comparable living quality will be significantly higher (due to €500 ground value it will be a good location, so cold rent for a house between €1,500 and €2,000 from experience). That would annoy me. Throwing away so much money on rent and giving it to a third party. Just imagine 10 years of rent with ongoing rent increases, non-ownership, etc. Then you eventually move out and have spent over €200k just for using a property. That is wasting money. In the same time, with financing, it is "only" €140k interest (3.5% interest/1.5% repayment). And the longer the financing runs, the more the pendulum swings toward buying, thanks to the saved interest. Rent tends to increase further with compound interest effect.

Uh, I don’t quite understand where there are supposed to be "wrong facts" on my part? You’re calculating my numbers, so how did you get 1400 from 3.5+1.5?

No, I never said that. I only said how the rate can be. There are plenty of wrong facts. - Duration of the financing - Equity ratio - Expected installment amount €2,000 - OP cannot save

What experience? Are you a financing broker

No, but I can calculate and have dealt with it out of personal interest; if the original poster does as well, they’ll see for themselves. Above all, don’t worry, a high equity does not cut the interest rate in half.

That would be roughly the average financing amount for a single-family house in 2023. By the way, "a lot" is just a word if you don’t explain it or provide relations. For a millionaire it’s very little, for a citizen receiving benefits it’s a lot. Etc.

Income 5.6k, so it should be clear that they are neither the one nor the other.

You really missed the mark with that

More like the one who thinks financing with 1% repayment would be solid

So what now? Okay or not?

Average means exactly that, OK—nothing more and nothing less

No, unrealistic and out of touch.

Fine, that’s your opinion; as I said, I’m not here to argue in this forum.
We agree on your last point, we are talking about things we cannot know.

No, I never said that. I only said how the rate could be.

Who then brought 1400 for 400k into play? Did I confuse that? Whatever

We are quite off topic, the question was about funding, just in case anyone still wants to contribute something meaningful.