Construction financing - mortgage instead of equity?

  • Erstellt am 2019-08-27 07:04:59

saralina87

2019-08-28 09:50:05
  • #1


No, unfortunately not. It is a new construction project by the developer, or rather by the savings bank.
 

Yaso2.0

2019-08-28 10:02:28
  • #2


What a pity

You have a net income of 4300 euros after deducting private health insurance and want to finance 430k with that (what about upgrades, outdoor facilities, floors, kitchen, etc.). Is everything really included?! Basically, that should be doable.

But the whole framework is not just based on the installment. There are also the annual or monthly additional costs. Depending on how big the house will be, you calculate (I think) 2-3 € per square meter.

So I think that almost 40% of your income will be spent on the installment plus additional costs (if you calculate all costs monthly) for housing. Then there are your own monthly expenses like car, leisure, vacation, hobbies, subscriptions, internet, mobile phone, possibly further insurance, etc. etc.

Since children are planned and income naturally decreases temporarily and eventually things like daycare will be added, it would personally be too tight for me. The remaining debt at the end of the fixed interest period after 15 years would also simply be too high for me.
 

saralina87

2019-08-28 10:19:32
  • #3


Actually, (except for the kitchen) everything is included. However, we want to either take the kitchen from our apartment or pay for it separately (we would then hold back at least 10,000 euros and would not need the kitchen until in 18 months). For the beginning, a kitchen for 8,000 euros is also enough for me.

My current calculation looks like this:
4,800 income (or 4,200 in the first year with a child, 4,600 in the second year with a child) - Christmas bonus and tax refund not included
1,200 for the installment
400 incidental costs (with 125 sqm living space, is that realistic?)
500 health insurance
60 disability insurance
100 savings rate
60 Riester (with term life insurance)
180 car (but will drop off in two years)
75 annually incurred costs, divided by 12 months (ADAC, liability, car insurance, car tax...)
40 internet
40 mobiles
50 SKY

That leaves a monthly remainder of 2,095 euros (or 1,495 in the first year with a child and 1,895 in the second year with a child). From that, living expenses (currently around 600 euros including vacations), fuel (about 250 euros) and everything else must be paid; mathematically there should be a surplus of at least 650 euros (which, of course, the baby would also have to live from).

Too risky?
 

Gelbwoschdd

2019-08-28 10:36:11
  • #4
With a rate of 1200, life will probably work out. Whether you absolutely have to take a vacation for 7200 euros a year is also questionable (savings potential) and Sky at 50 euros should also be reconsidered if things get tighter, BUT with a rate of 1200 and your loan amount, you will still have an immense remaining debt after 15 years. That would cause me much more headache.
 

Yaso2.0

2019-08-28 10:38:55
  • #5


I also once bought a house from a developer; everything was “included” there, too. In the end, I had to do the outdoor areas myself (garden and terrace), ordered more power outlets than the developer had planned (only 2 outlets per room), had to paint/wallpaper myself, had to pay extra because I wanted the floor tiles laid diagonally, and of course had to pay for and have all the floor coverings installed myself.

So if everything is included except the kitchen, that’s already really good!

No one here wants to talk you out of building/financing a house. We just want to give the questioners a little nudge to really think everything through. Everyone makes their own decision.

I’m 37 and grew up very modestly, so for me it would never come into question to involve my parents financially (especially not with their house!!). I think your parents will surely support you if a few euros are missing here and there. That way the whole thing can and will work.

Nevertheless, I personally consider the repayment to be too low for the project. Without special repayments, there will be a pretty hefty amount at the end of the interest period.
 

Zauberwesen

2019-08-28 10:53:51
  • #6


Do you have a second and third card? Otherwise, just cancel and wait for a new offer – here you can at least save 25€.
 

Similar topics
22.01.2016Financing Land & Corner Bungalow20
02.08.2016Introduction to Construction Financing10
28.12.2016With or without a building savings contract (interesting model)18
24.07.2017Construction financing for a large family house52
05.09.2017Finance land/house separately - fixed interest rate11
10.01.2019How would you finance €340,000? Split it?18
23.03.2020Loan for new construction - feasibility, recommendations11
27.08.2019New construction, financing feasible?10
26.08.2020Deferred Land & Single-Family Home Financing17
09.07.2021Living in and renting out DH: Please share opinions/experiences14
20.09.2021Financing single-family house 1964, 145k equity, 582k loan, 6k equity25
28.02.2023Evaluation of Savings Bank Interest Offer17

Oben