Building a house without equity or how does one proceed?

Good morning,
I hope you don’t throw stones at me. I am new here and hope I am in the right place. The thing is, I keep coming back to this topic and no one can really tell me from experience something good or bad.
Can you buy or have a house built without equity?
And if yes, how do you proceed? Where can I find companies that build a house according to my wishes?

And if no, how can I best save the money? Building savings contract? With which company or what other options are there?

What is rent-to-own?

I hope I get answers here, otherwise I thank you in advance.

For a long time, 20-30% of the capital requirement was considered necessary as equity for home financing. Even today, these values are quite reasonable if one does not want to take too much risk. For a solid full financing, one will always have to pay significant interest surcharges, because the risk is considerably higher for the bank. In addition, a high and secure income must be present, otherwise it will be difficult to find a bank that guarantees solid financing. I would not build or buy without equity. So initially building up equity would be at least my advice. How best to do this certainly also depends on risk tolerance and financial possibilities. In my opinion, a regular savings rate is more important than how the money is invested (Tagesgeld, Bausparer, etc.).

Much more important is the question of why you have no equity. This is the consequence of spending your entire income and not building up savings. For many, the balance is even negative, and there are (sometimes a number of) consumer loans (installment loans) present.

Often, there are understandable reasons for missing equity, e.g. young family, living well and comfortably, etc. It is questionable whether the burdens after purchasing/building a house will be higher than the burdens of the current situation. It should be taken into account that loan installments are regularly higher and higher incidental costs, etc. will occur.

In the end, it depends on whether one can sustainably bear the future burdens.

If the result is a "yes," then one will be able to manage financing at 100%, even with moderate conditions. If the result is a "no," one should refrain from such a project out of self-interest, even if one or another bank would still provide the financing.

Never forget: money problems are relationship/marriage killer No. 1.

Hello "absent" Voki, *wink*, but you are right.

The first line is the most important point everything revolves around and the costs of ownership are usually always higher than renting and the like (unless other existing burdens then disappear (2nd car, student loan, etc.)).

Without any equity at all (at least the ancillary costs should be covered) it will be at least expensive, if not also "interesting".

So aim for 10-15% of the total costs as your first savings goal.

Hello,

I would always ask the question why one has no equity? Studies and first job, living paycheck to paycheck, many vacations etc pp

Property entails obligations and also needs to be paid back. New builds are even more critical as immense additional costs could arise. Without equity, it looks bleak.

I admit, there was no saving earlier, which I now regret of course. The [Bausparvertrag] was there, it was also terminated because the money was urgently needed. Now there are two Riester pensions running (but only for 2 years). However, since I have often heard that many bought houses without equity, I was interested in what risks that entails.