Building a house - Is that possible with our financial situation?

2016-03-01 20:45:21

I am no standard and didn’t need a consultant. Due to equity and income, that was never an issue and the banks were the "petitioners" with us

No, it wasn’t a criticism of you but of the general, in my opinion, dumbifying banking world – they actually manage with these actions to bind young people to themselves, thereby destroying their lives, and still an estimated 80% of Germans think the bank always wants only the best, and what strangers or even other consultants say, oh nonsense, they only tell rubbish

2016-03-02 01:41:34

So today I had the conversation at the Sparkasse; the current situation is that I would get €250,000. I told him about the idea of keeping a household budget and simulating the situation as if I had a loan and would pay a rate of €1,200 every month; he said that was a good start. He recommended investing part of the €1,200 into a Wohn Riester. I still need to get more information on that, although I am not a big fan of Riester. Then we came to the topic of the car loan that is still outstanding; I suggested that if I found a plot of land without a building obligation, I would buy the plot and include the car loan, and instead of paying €400 towards the car loan, I would start paying off the plot with €400. He also thought that was a good solution. So it is certain that I will save as much money as possible; if I find a plot, it would be worth considering buying it. This way, my loan would be gone and the remaining money I save would go into equity.

You made suggestions and he nodded that this and that was a good idea?

2016-03-02 08:27:50

I told him about the household book and [Grundstück] and asked if it would be feasible. It also didn’t seem to me like he would give me the loan immediately. So he was cautious about that. What he tried to do was to push the Wohn Riester on me.

2016-03-02 11:04:29

You want to pay 400€, exactly as much as you would pay off the car? If you’re lucky and the cars aren’t too expensive, the 400€ covers the depreciation for the 2 vehicles. So you build up 0 equity. How naive are you actually? I wonder what drives the banks to approve something like this and then, when the next big banking crisis comes, there will be a lot of crying again that they didn’t see it coming.

2016-03-03 20:00:20

Maybe as a small warning to potential builders: Despite a soil survey, we have already spent an extra 5,000 euros for removal and sand filling after just a few days. Then an extra here, a forgotten thing there, and an even nicer door over there.. Meanwhile, the shell is standing and despite a fixed price and detailed calculation in advance, I already have almost 10,000 euros more on the clock. Without a buffer, the drama would slowly begin.. For projects in the range of 300,000-400,000 euros, a calculation deviation of only 5% is already 20,000 euros! Therefore, one should have this amount in reserve!

2016-03-03 20:06:55

Maybe a small warning to potential builders: Despite the soil report, after just a few days we already spent an extra 5,000 euros for removal and sand filling. Then an extra here, a forgotten thing there, and an even nicer door over there... Meanwhile the shell is standing, and despite a fixed price and a precise calculation beforehand, I already have almost 10,000 euros extra on the meter. Without a buffer, the drama would slowly start... For projects in the range of 300-400,000 euros, a calculation deviation of just 5% is already 20,000 euros! Therefore, you should have this amount in reserve!

That's exactly how it looks. We have a 50k "buffer"... but it ACTUALLY should go towards the special repayment. We'll see if that works out...

Building a house - Is that possible with our financial situation?

ErikL

ypg

A2theX

Musketier

Nordmann

Steffen80