Being able to build and finance building

Hello dear community,

I have read through this forum thoroughly. Since I have seen that there are also very competent people here who help with financial matters, I have decided to ask for advice as well.

We (2nd person) want to build or, if we find something, buy. Currently, we prefer to build. For me, it is somewhat about what is really financially feasible. I have already tried many finance calculator machines on the internet, but somehow not satisfactory for me.

We probably want to build a Scanhaus Marlow Marlow. Planning about €115,000 for the house, plus €40,000 for the land. Plus additional costs. What should we calculate there, €30,000 (purchase price additional costs + construction additional costs). NO equity - full financing!

After deducting ALL expenses, we have about €1,000-1,200 left for the installment and additional costs. For possible uncertainties, we have made a worst-case plan with about €850. Currently, rent including utilities is €1,000, increasing due to graduated rent.

Is that doable?
I am open to all tips and very grateful. Appointments at Scanhaus Marlow and the house bank are scheduled for this week. I would like to go into the discussions well informed.

Possibly barely feasible, but then rather €1200/month

Hello Phil,

Real estate financing without the use of equity has become more difficult - and more expensive. In the standard case, the incidental acquisition costs (real estate transfer tax, notary fees and possibly brokerage commission) are to be financed with a subordinated loan. The interest rates for this are somewhat higher than for a construction loan or KFW funds.

With a sufficient income situation, such financing is usually still possible.

Best regards
M. Thiemann

Difficult, difficult!

As already mentioned, financing without equity is expensive. Get some offers made for you. Even with a new build, you should simultaneously build up reserves for any unforeseen contingencies. And pay down properly during good times. Take advantage of special repayment rights.
A little tip. An overdraft is not classified as credit. It is expensive, but if you show the financing bank a little equity, it looks a bit better. Otherwise, they will wonder what you spent all your money on before. With KFW funds, you at least have one year without repayments. In that case, you should use that to reduce your equity (overdraft).