Complex financing plan, please provide comments/experiences

Hello everyone,

First of all, I am happy to be here and hope for active participation in the following discussion.

For your information: This is especially about the type of financing (combination), not about questions regarding affordability or house construction itself. Perhaps a new topic on the latter once it becomes concrete :)

We are planning to build a house including the purchase of land for 2014 or 2015 and, as we think sensibly, are starting very early with the planning. We have thoroughly dealt with the expected costs, and it will come down to the following roughly summarized compilation:

Land: approx. € 100,000
House: approx. € 200,000
Additional costs: approx. € 50,000 (summarized into one item for simplicity)
Total: approx. € 350,000

After extensive study of all financing options known to us or discovered during the study, the combination that currently seems most promising to us is a combination as follows:

1. Equity: approx. 15%
2. State development bank: approx. 10% (Hamburg or SH, unbeatable low interest rate of approx. 1.5%. Also takes care of organizing the combination of loans)
3. KFW loan: approx. 30% (residential construction + energy efficient each € 50k, interest approx. 2%)
4. Building loan contract: approx. 15% (as a residential Riester-subsidized advance loan, worthwhile with three children, interest ends up at about 1-2%)
5. Bank loan: remainder, approx. 30% (without this no bank would agree to such complex variants anyway. Low interest because of first-ranking security)

What do you think of this, has anyone had experience with similarly complex structures, do banks even cooperate with this?
I am grateful for all answers; further necessary information can be provided upon request.

Best regards,

Sebastian

I think that quite a few banks would go along with that, but I don't think that various "Billig will ick" direct banks would do that. They have "no interest" in something like that. However, there are also some that do it.

With the home savings contract, you might possibly be tied to the cooperating BSK of the first-ranking bank for it to participate. But even here, exceptions prove the rule.

If I were you, I would check whether the Kfw housing program is not more expensive than the bank loan increased by this amount. This might even be cheaper.

Until you sign the loan agreement, all the interest rates and programs from Kfw and co. will change 3 more times anyway. Therefore, in my opinion, it makes no sense to go into the detailed planning for financing now. I also dare to doubt that you will manage with the financial means for the house with 5 people.

Hello

I can only agree with that. It may be that the 1a loan becomes more expensive. Do you know the disadvantages of [wohnriesters]? Maybe it is still sensible to do without the module and only save for old age

Thanks for the opinions so far :)

I had calculated the Wohn-Riester in many variants using the FMH financial advisory tool and compared several other calculations. Despite the taxation of the housing promotion account at the start of retirement, which you are probably referring to, it is cheaper in almost all variants, plus the fact that the calculation until full repayment of this component is understandable.

Thanks for the info about the KfW loan. Why could it be more expensive with KfW? Because the bank gets 30% too little of the pie and would rather have 60%?

Regarding the total costs: We don't need a big house with 20m² rooms and a 60m² eat-in kitchen, I never understood why that is always offered like that in house construction catalogs :)

Thanks in advance for more info!

About Wohnriester: Another disadvantage arises if for any reason you have to sell or rent out the house. About the KFW loan: Because the KFW housing construction is partly more expensive than comparable loans with a 10-year fixed interest rate from the bank. About the total costs: No one said you need a 20m² room, but we are only planning for 3 people, don’t have a huge house (125m²), are building in the eastern part of the republic with low construction costs, and are just barely below your construction costs.