Construction financing: Is building a house possible? Please provide an assessment

  • Erstellt am 2019-01-04 09:54:38

Caspar2020

2019-01-04 18:28:13
  • #1


With a 200K property cost and only 10K equity, it will be difficult to stay below 100% loan-to-value ratio.
 

face26

2019-01-04 18:29:07
  • #2


And how do you claim to know that? Have you already seen that the original poster wants to build in BW? And that he wants to build in three to four years? Prices are just like that in BW. The 2,000 is simply a common calculation value. And it might be enough somewhere in northern Germany for the equipment you mentioned - in BW never. Even if it were so and you find a general contractor who builds it for 1,800. What changes? 130x200 changes the calculation by 26,000 differently. That’s why you don’t get a rate of 1,400 €...
 

face26

2019-01-04 18:33:55
  • #3
[QUOTE="Milo3, post: 299642, member: 46427"]Why are they over 100%? If the property is bought without a real estate agent and they are lucky with the tax office (like we in RLP, only had to pay the real estate transfer tax on the land value for the fully developed property).[ /QUOTE]

What kind of calculation is that? The OP currently has €10,000 equity. Needs to move, needs a kitchen, etc. Did you even read the original post?

What are lamps, furniture, kitchen, etc. supposed to be bought with afterwards?
 

Milo3

2019-01-04 18:42:19
  • #4
That's exactly the problem. You are making assumptions here that are completely obvious to you. Absolute nonsense. For what reason do you have to completely refurnish immediately?! I still understand the kitchen, but it doesn't have to cost 10k. Apparently, you absolutely didn't understand what I wrote, and that exactly reflects the general opinion here! Everything has to be new and everything has to be equally upscale!!! I already saw that the original poster wants to build in 3-4 years... but what qualifies you to make such a prognosis? Construction costs have risen in recent years, that's true. But interest rates have also fallen at the same time... what happens when interest rates rise again (as is currently slowly the case)!
 

readytorumble

2019-01-04 18:48:02
  • #5


Do you really think that construction costs will immediately fall?
I don't believe that. They will stay at the current level or even rise significantly now due to the Baukindergeld.

My opinion: Currently no construction because of lack of equity. Construction possible in 3-4 years if substantial equity is saved by then. But it will be expensive. I wouldn't plan under €2000/sqm in 3-4 years even with the cheapest standard!
Therefore, I would intensively look for an existing property.
 

Milo3

2019-01-04 18:57:17
  • #6


Yep, if it were that easy to make predictions based on subsidies hopefully you’re not evaluating stock purchases based on past performance
 

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