dede09
2014-02-24 23:20:08
- #1
Hello everyone!
I came across this forum via Google and have already "gotten lost" in quite a few topics here. Great platform and many helpful people, compliments from me - and at the same time the explanation for my registration. :)
I am 25 years old, have been a civil servant since 2010, and as a career starter earn almost exactly €2000 net. My parents built a single-family house in 1996, in which I still live. I have not taken the "leap" yet because I am considering taking over this house. Now it might be time.
The house stands on about 654sqm of land, has a garage of 40sqm, a conservatory of 28sqm, is basemented and has a living area including the conservatory of about 200sqm.
I have already been to 2 banks (Sparkasse and Sparda). The financing was originally done at Sparda for building and is still running there. Therefore, the bank knows the facts about the house quite well (plans, location, etc. etc.). The house is 80-85% paid off.
At the moment, the bank sets a value of around €220,000 but estimates the current market value to be significantly higher.
I would get the house for €150,000. As of now, I have a small equity of €12,000 plus a Riester pension that has not been contributed to for long and very marginally, just to secure some allowances: €1800.
To immediately modernize things like the kitchen, bedroom, and living room a bit, I aim to borrow €165,000. That would be around €20-25,000 for renovations.
Since it is a direct family relationship, no real estate transfer tax applies. Only costs for the notary regarding the land register entry?
The following offers exist so far:
Sparda:
10-year nominal interest rate
2.68% fixed nominal interest rate
2.71% effective annual interest rate
Sparkasse:
10-year nominal interest rate
€50,000 via KfW with 2.89% effective interest rate, 5 years possible repayment free
€115,000 via Sparkasse with 2.65% effective interest rate
Question here: Why KfW at all? The Sparkasse does not want to do full financing, so basically KfW, but in my opinion, there is no promotional reason from which I would effectively benefit - apart from the fact that I only get the financing from this bank because of it.
The monthly installments would be between €550-700. Now some might shout "Great, pay it off by 2050." However, my longtime girlfriend earns a similar amount, and if living together in our own house continues to be this good, the whole thing will be paid off together (special repayments). In addition, I do not want to exclude selling the house in 10-15 years, paying a possible prepayment penalty, and still at least breaking even, if not even making a certain profit (capital for new construction - but that is future music). It would also be possible to rent out the upper floor (-> income), should I unexpectedly live in the house alone someday.
- So far, I approached 2 banks directly. House bank (Sparkasse) and Sparda Bank. Which one should I possibly still approach? Does an independent broker make sense here (I often read about this in other topics, often resulting in better interest rates; sometimes via insurance?!)
- Which costs might I possibly overlook?
- Nominal interest rate fixed period runs out > save for a building society at this time or repay more until then?
- What do you think of the stated interest rates?
- What are the advantages/disadvantages of assembling the loan from several partial loans (KfW/Sparkasse or similar)? My gut feeling tends toward a "simple" loan, as presented by Sparda. Multiple loans might mean more flexibility, but the advantages are not really clear to me.
I would be grateful for any assessment of the whole project, financing tips, or anything else you might think of that I may have overlooked. It seems to me that I practically have no/little risk. I can manage this alone, banks are willing to give me the money, I have a secure income, and the value of the house is above the loan value. So far, I plan to manage it alone from the beginning can - however, I am not alone, and the costs are shared with my girlfriend. I have analyzed my expenses very precisely and know that both the credit costs and the additional costs can be borne by me. Anyone wanting more detailed info, just ask.
Long text, many thanks and best regards from Hesse.
I came across this forum via Google and have already "gotten lost" in quite a few topics here. Great platform and many helpful people, compliments from me - and at the same time the explanation for my registration. :)
I am 25 years old, have been a civil servant since 2010, and as a career starter earn almost exactly €2000 net. My parents built a single-family house in 1996, in which I still live. I have not taken the "leap" yet because I am considering taking over this house. Now it might be time.
The house stands on about 654sqm of land, has a garage of 40sqm, a conservatory of 28sqm, is basemented and has a living area including the conservatory of about 200sqm.
I have already been to 2 banks (Sparkasse and Sparda). The financing was originally done at Sparda for building and is still running there. Therefore, the bank knows the facts about the house quite well (plans, location, etc. etc.). The house is 80-85% paid off.
At the moment, the bank sets a value of around €220,000 but estimates the current market value to be significantly higher.
I would get the house for €150,000. As of now, I have a small equity of €12,000 plus a Riester pension that has not been contributed to for long and very marginally, just to secure some allowances: €1800.
To immediately modernize things like the kitchen, bedroom, and living room a bit, I aim to borrow €165,000. That would be around €20-25,000 for renovations.
Since it is a direct family relationship, no real estate transfer tax applies. Only costs for the notary regarding the land register entry?
The following offers exist so far:
Sparda:
10-year nominal interest rate
2.68% fixed nominal interest rate
2.71% effective annual interest rate
Sparkasse:
10-year nominal interest rate
€50,000 via KfW with 2.89% effective interest rate, 5 years possible repayment free
€115,000 via Sparkasse with 2.65% effective interest rate
Question here: Why KfW at all? The Sparkasse does not want to do full financing, so basically KfW, but in my opinion, there is no promotional reason from which I would effectively benefit - apart from the fact that I only get the financing from this bank because of it.
The monthly installments would be between €550-700. Now some might shout "Great, pay it off by 2050." However, my longtime girlfriend earns a similar amount, and if living together in our own house continues to be this good, the whole thing will be paid off together (special repayments). In addition, I do not want to exclude selling the house in 10-15 years, paying a possible prepayment penalty, and still at least breaking even, if not even making a certain profit (capital for new construction - but that is future music). It would also be possible to rent out the upper floor (-> income), should I unexpectedly live in the house alone someday.
- So far, I approached 2 banks directly. House bank (Sparkasse) and Sparda Bank. Which one should I possibly still approach? Does an independent broker make sense here (I often read about this in other topics, often resulting in better interest rates; sometimes via insurance?!)
- Which costs might I possibly overlook?
- Nominal interest rate fixed period runs out > save for a building society at this time or repay more until then?
- What do you think of the stated interest rates?
- What are the advantages/disadvantages of assembling the loan from several partial loans (KfW/Sparkasse or similar)? My gut feeling tends toward a "simple" loan, as presented by Sparda. Multiple loans might mean more flexibility, but the advantages are not really clear to me.
I would be grateful for any assessment of the whole project, financing tips, or anything else you might think of that I may have overlooked. It seems to me that I practically have no/little risk. I can manage this alone, banks are willing to give me the money, I have a secure income, and the value of the house is above the loan value. So far, I plan to manage it alone from the beginning can - however, I am not alone, and the costs are shared with my girlfriend. I have analyzed my expenses very precisely and know that both the credit costs and the additional costs can be borne by me. Anyone wanting more detailed info, just ask.
Long text, many thanks and best regards from Hesse.