Building financing first offer

But you do know that statistics are a significant part of risk controlling, don't you?

Unfortunately, I am not allowed to use reliable figures from my current work as a risk controller at a bank here.

What do you want to say with that now?

I don't know which bank you work at and/or how many financings you have insight into there. But either you actually have the possibility to check thousands of construction financings from the last decades based on our assumption and also represent the result here, or it remains a personal assessment based on a limited data set. But that would then not be "reliable."

Edit: And not to make this come across wrongly here; I do not think you are making things up, or would even claim that you are wrong. I would just personally come to a different assessment. It can be as correct or wrong as any other reasoned opinion!

Whether the discussion about who knows the median income of home builders best really helps the OP?

Back to the question:

The offered financing would be too confusing for me. Have them offer you the required amount of 255 TEUR as an annuity loan with a fixed term. That would have the advantage that you wouldn’t have to refinance different amounts at different times. The KfW-124 program is currently not particularly attractive by comparison given the low interest rates anyway.

You didn’t ask whether the estimated sum is sufficient "all inclusive." But it will probably be quite tight - even in McPomm - .

When I look at the posted statistics, I find my statement "the income is not special" quite fitting. Always assuming the absence of equity capital. If additional building costs + 20% equity capital were there... it obviously looks much better.

And that builders (new builds in 2016!) usually only have a household net income of 3500-4000 EUR, I continue to doubt. That does not match my circle of builder acquaintances. Ultimately, I don’t know either and there apparently seems to be no statistics. Maybe I’m wrong...

Regards, Steffen

PS: Also interesting to read again that people with significantly higher incomes are not allowed to comment here. I reread all the user conditions... but I couldn't find that clause

Then your circle is just more well-to-do. Birds of a feather flock together. Here’s 2 euros into the phrase pig. However, I know from my circle that net incomes of 4000 euros were rarely reached here. And I’m not talking about five years ago.
However, the part of equity capital is not viewable and also not the items sponsored by relatives are accounted for. It is supposed to still happen that parents, relatives contribute.

Thank you for the tip about the annuity loan.

I hope I have not started a fundamental discussion about financing with an income of 4000 euros.

Equity capital of 17,000 euros is available. That is already a lot of money for some people. Unfortunately, it was not possible to save more because the professional situation with the income as a civil servant has only existed since autumn 2015. Of course, you can save more equity over 2 - 3 years, but how will the interest rate situation for construction financing look in 2-3 years? In our area, land prices have risen very quickly because the demand for building plots has increased extremely. So wait or build? When is the exact time to build?

The 17,000 euros should be enough for the ancillary costs of the land since it is being bought separately. It is fully developed. Of course, you can correct me on this.

I find the view of some people here quite embarrassing. In some federal states, 4,000 euros net income for a family of four is a pretty good income. Of course, I would think differently if I lived in Bavaria or Baden-Württemberg with a net income of over 6,000 euros. But then of course you could save more equity to get better financing.

To throw another question into the room: why does it always have to be a house with construction costs of over 300,000 euros? We are simple people with low demands. Here, there are house companies that offer an angled bungalow (122m² living space) also for about 170,000 euros.

Thank you for the tip about the annuity loan.

I hope I didn’t start a fundamental discussion about financing with an income of 4,000 euros.

Sorry.. it’s always annoying when a thread gets hijacked.

There is 17,000 euros in equity. For some people, that is already a lot of money.
Unfortunately, it was not possible to save more because the employment situation with the income as a civil servant has only existed since autumn 2015.

Of course, that is actually a lot of money. Even for me! (yeah yeah.. some will laugh now). BUT 17,000 EUR in relation to a project like building a house is unfortunately not much. That’s the bitter truth. Unfortunately, the costs for purchase and construction have risen significantly in recent years and therefore the 17,000 EUR are basically “less” worth. Some call that inflation.

Of course, you can save more equity over 2 - 3 years, but how will the interest rate situation for construction financing look in 2-3 years.
In our area, land prices have risen sharply in a very short time because the demand for building plots has increased tremendously. So wait or build? When is the right time to start building?

Don’t fall for sayings from some banks and advisors. Under no circumstances build just because of the interest rates. That is pretty reckless and absolutely not recommended.

The 17,000 euros should be enough for the incidental costs of the plot, since it is bought separately. It is fully developed. Of course, you can correct me if I’m wrong.

House construction also has incidental building costs (not few)..not to mention landscaping, kitchen, moving, and so on and so forth..

I find the view of some people here quite embarrassing. In some federal states, 4,000 euros net income is quite a good income for a family of four. Of course, I would think differently if I maybe lived in Bavaria or Baden-Württemberg with a net income of over 6,000 euros. But then you could of course save more equity to get better financing.

See above. 4000 EUR net is a lot at first. But divided among 4 people is already “much” less and in relation to a house building project only average (yeah yeah.. no matter whether under or over). It’s certainly NOT much.

To throw another question into the room: why does it always have to be a house with construction costs of over 300,000 euros? We are simple people with low demands. Where we live, house companies offer an angled bungalow (122 m² living space) also for about 170,000 euros.

Show me someone who in 2016 buys a plot + builds a house + pays incidental building costs for 170k? Especially 122 m². Forget catalog prices. All a rip-off.

Regards, Steffen