Construction financing proposal, opinion?

2018-06-17 20:49:06

I have to admit we have absolutely no idea what to make of it.

It's about a new build.
No, we didn't have it calculated, we trusted our financial advisor because you assume he does this more often and will get us a good offer.

We will live in the house ourselves, it's not an investment property.

If we now go to someone else for a loan, should we then say he should calculate an annuity loan for us?

Your advisor was aiming to maximize profit :)
Get another financing broker and have them calculate an annuity loan for 20 years. Land available? If yes, then this counts as equity. If no, then your €300k most likely won't be enough, unless the land costs €30k and it's a shell house.

2018-06-17 21:17:13

I will call somewhere else tomorrow, what can be recommended to me? Sparkasse is out. The plot is reserved, we have received an offer from the construction company, as we imagine the house, turnkey. We have to do the painting and floors in the bedrooms and kitchen/living/dining room ourselves. I am attaching the overview of the costs.

2018-06-17 21:21:31

Do you still have money for kitchen, lamps, plants, and other things?
Why not [Sparkasse]? Or [Volksbank]? These institutions usually have a lot of deposits, so they have too much customer money and like to sell loans, therefore they are often inexpensive. We are satisfied with [Volksbank].

2018-06-17 21:34:38

Yes, we have still set aside savings for lamps etc. The Sparkasse wants about €40,000 in equity for the amount... We will probably call the Volksbank and make an appointment.

2018-06-17 21:38:12

Outdoor facilities/ancillary building costs 15K€ ... can't believe this still exists :D Better make it 50K€.
Plus kitchen, parking space/carport, ...
225K€ building fully specified? Put a big buffer on that too!

All in all 50-100K€ too low.

2018-06-17 22:05:52

I will call somewhere else tomorrow, what can you recommend to me?
Sparkasse is out.

The plot is reserved, we have received an offer from the construction company, just as we imagine the house, turnkey. Painting work + floors in the bedrooms and kitchen/living/dining room have to be done by us.
I am adding the cost overview.

Sorry, this won’t work. The money will run out before you finish. This is deception and won’t do you any good.
Just the house connections will cost you at least €10,000. If you have problems with the ground, you’ll easily lose €20,000. Have you already done a building ground survey and soil analysis to avoid a failure here?

Are these numbers from the finance guy who tried to rip you off?

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Construction financing proposal, opinion?

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Josie.wa

Nordlys

Josie.wa

Alex85

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