Construction financing at 95%?

If you have 15k + 600 + for example 1500 saved as a second income, you will have about 42,000 with interest after one year, which is 14% equity. With 3000 saved as a second income + 600, you will have about 60,000 equity and 20%, I don’t know which income and how much might disappear ;-)

Ok understood :)

So that we can additionally set aside 600 + 1,500 / month is not possible. I think if we can save a total of 1,200 / month for one year (with interest then about 15k), that is already good .. that would then be a maximum of 30,000 = max. 10% together with the already available 15k equity.

However I calculate up here, we would at least like to secure a building plot ..

Does it make sense to secure / finance it in advance?

No, save first.

I agree with that. In any case, avoid applying for separate financing for the purchase of the land and later for the house construction! Otherwise, you put yourself into an unnecessary dependency on the bank that financed the land, as they then block the land register.

With a financing amount planned by you of 285,000 EUR, you are looking at a monthly rate of about 1,260 EUR, which is already above the desired 1,000 EUR. Operating additional costs will be added.

In addition, the financing will lead to noticeable changes in your previous standard of living (rent previously 650 EUR; new rate 1,600-1,700 EUR!). But if that is okay for you, there is basically nothing against it.

You should also factor in the risk with the employer (even if that is difficult to estimate).

Best regards M. Thiemann

Hello Villariva,

I always plan the financings so that the payment obligation is as low as possible and then, if there are still free monthly amounts available - on a voluntary basis - the repayment is increased.

This way, you can in the best case completely exclude a later interest rate risk - at least reduce it -, shorten the term, and still remain flexible.

Best regards

M. Thiemann