Construction financing abroad (Poland)

Hello,

I would like to use the collective knowledge of this forum and inquire about our planned financing project.

Information about us:

I am 35 years old and married. My wife is 27 and currently takes care of our 2-year-old son.

I am currently employed as a civil servant with a monthly net income of approximately €4500. In addition, we receive €300 in parental allowance and €250 in child benefit. My wife would like to stay at home for at least another 2 years. Our net household income is therefore currently around €5000.

Furthermore, I am the 100% owner of a fully paid-off property (single-family house in northern Bavaria) with an estimated value of approximately €600,000. This is my parents’ house.

Since my wife is Polish and for various reasons we would like to emigrate from Germany, the question arises for us about property financing through a German bank.

The property is a new build (single-family house) with approximately 180 sqm of living space and a plot size of about 1500 sqm. The purchase price including acquisition costs is approximately 1,100,000 Zloty, approximately €250,000. Yes, for this amount a new build single-family house of this size (near the border) is feasible in Poland.

Based on your experience, is it generally possible to obtain 100% financing for the Polish property with the registration of a mortgage/land charge on the above-mentioned German property?

Best regards

Hello,

I would like to use the collective knowledge of this forum and inquire about our planned financing project.

Information about us:

I am 35 years old and married. My wife is 27 and currently takes care of our 2-year-old son.

I am currently working as a civil servant with a monthly net income of approx. €4500. In addition, we receive €300 in parental allowance and €250 in child benefit. My wife would like to stay at home for at least another 2 years. Our net household income is therefore currently approx. €5000.

Furthermore, I am 100% owner of a fully paid-off property (single-family house in northern Bavaria) with an estimated value of approx. €600,000. This is my parental home.

Since my wife is Polish and for various reasons we would like to emigrate from Germany, the question arises for us of a property financing through a German bank.

The property in question is a new build (single-family house) with approx. 180 sqm of living space and a plot size of approx. 1500 sqm. The purchase price including acquisition costs is approx. 1,100,000 zloty, approx. €250,000. Yes, for this amount a newly built single-family house of this size (near the border) is feasible in Poland.

Based on your experience, is a 100% financing generally possible for the Polish property with registration of a mortgage/land charge on the above-mentioned German property?

Best regards

One more addition. Unfortunately, we do not have any significant equity as we currently pay approx. €1800 rent in a metropolitan area. The financing rate could even be lower, approx. €1300 for €250k. Furthermore, I could work 100% from home office, which only makes this project possible.

Is there, according to your experience, fundamentally the possibility of 100% financing for the Polish property with the registration of a mortgage/land charge on the above-mentioned German property?

With the ratios, at any time easily doable by any bank. In the end, it is "only" a capital procurement. The purpose of use is basically irrelevant. In Germany, only a land charge is registered on the property. Mortgages have long been out of use.

Unfortunately, we do not have any significant equity

You have €600,000 equity tied up in a property. Lastly, one more question. You say "parent’s house." Who lives there and are you receiving rent? Or is there, for example, a right of residence or similar, which would then change my above statement to a "No, that probably won’t work."

Relations can be handled smoothly by any bank at any time. In the end, it’s "just" capital procurement. The purpose of use is basically irrelevant.

In Germany, only a land charge is registered on the property. Mortgages have long been out.

You have €600k equity, tied up in a property.

One last question though. You say "parental home". Who lives there and do you receive rent? Or is there e.g. a right of residence or similar, which would change my above statement to a "No, that probably won’t work".

So my mother has unfortunately already passed away. After my mother’s death, I became a 50% owner of the property. Last year, my father’s 50% share was also transferred to me (gift). Currently, my father lives in the property. However, since I have had a "dream relationship" with my father my entire life, he did not register a right of residence or similar when transferring his 50%.

Then off you go and look forward to good conditions and a great new house in Poland.

Thumbs up for the relationship with your father

If your father pays your rent, I see no problem. Otherwise, you only have expenses. For example, who pays for necessary renovations on the [beleihungsobjekt]?