Construction financing - What is possible?

  • Erstellt am 2013-10-27 10:04:59

HilfeHilfe

2013-10-29 07:43:32
  • #1
Hello,

you will not be able to finance anything around 300k on your own. You would already have to involve your partner (future wife?). Whether prices will come back, especially in new builds, is pure speculation. Even if interest rates turn around. The German economy is very robust, we did not have any weak phases even during the crisis.
Here it is about saving steadily and watching the market and not letting yourself get crazy!
 

Der Da

2013-10-29 14:06:10
  • #2
Right from the start, you will have massive difficulties finding a bank that will finance this properly. Fixed-term contracts are a problem, and your fixed net income is not high enough to finance €300,000. I gather from the article that you are not married. This makes the whole thing personally more complicated; the bank doesn't care about that.

If you are sure that you fit together, ask your families what they think of your plan. Maybe help can be provided here, and your equity share increased. Otherwise, I would advise you to save diligently for another 3-5 years. This will probably not be a bad plan. In 5 years, the first "bad" loans will expire, and many will realize that they may no longer be able to service the new interest rates. Eventually, interest rates will have to go up again. When that happens, there will be a lot of 10-year-old properties on the market. Maybe then there will be something for you, and your family and financial situation will be clearer.

Another alternative is to move further out. If plots start at €250 in your area, then these are also the plots that no one wanted before. The really good plots will probably cost more. We had the same problem. In Karlsruhe itself prices start at €500 and in the "Speckgürtel" (commuter belt) at €350. However, transport connections are catastrophic. We have now moved to the Pfalz... 25 km away. I need about 25-30 minutes to get to work in the morning, and it would take me 60 minutes by public transport. So acceptable, considering that I used to take 25-35 minutes to get to work from downtown, whether by car or public transport. And that was only 9 km :) Our plot price was then €120/sqm... still high, but affordable.

You also have to stop seeing everything as one sum. You have to break down the costs so that they can be evaluated. Because in the end, something must remain for the house, your total sum. Assuming a minimum of 400 sqm, the plot will cost you from €110,000. Plus €35,000 ancillary building costs. For a small house (approx. 120 sqm) without a basement, you will have to pay at least €200,000, no matter what the offer sheet says. It simply can't go much lower unless quality suffers.
 

lion7

2013-10-29 21:49:22
  • #3
I thought as much that it (still) wouldn’t work! Everyone really just wants to make money, they don’t care if someone ruins their future...

because of the property, we’re already moving further out into the countryside, but only way out in the sticks do you get 450 sqm for 35,000 EUR

actually, I was supposed to have one even myself (I found out yesterday :D) however it is not (not yet) approved as a building plot..
but the place is also pretty much in a village (which doesn’t bother me since I grew up there) however it wouldn’t fit with my work at the moment. but we’ll see what happens in a few years...

one guy also said there’s a combination between regular repayment and then after a few years paying into a building savings contract and after 27 years you’re definitely done. that sounded very good to us without us asking in detail how exactly it works.

does anyone of you know that?
 

backbone23

2013-10-29 22:41:12
  • #4


"Personal responsibility" - that's why you asked here. ;)



Repaying, suspending repayment and paying into a building savings contract, then redeeming with the building savings contract and paying off the building savings contract loan? I've never heard it like that and it sounds strange to me.

Maybe you got something mixed up? But for me, the first thing that applies here is: They are salespeople.
 

lion7

2013-10-31 20:00:23
  • #5
No, he really said it like that, first pay off normally and then at some point into the [bausparvertrag] and after 27 years it’s all paid off... we have another appointment, then we’ll ask again exactly.
 

Campino

2013-11-29 09:17:43
  • #6
Sounds to me like a classic pre-financing.

Take out a [Bausparvertrag], and basically pre-finance it. Then you pay interest and simultaneously save into the [Bausparvertrag] (preferably with government subsidies), after the savings phase you pay the regular repayment of the [Bausparvertrag]. The advantage is that you have a fixed interest rate on the [Bausparvertrag], but you have to agree on a fixed interest rate for the preliminary loan, preferably until the time when the [Bausparvertrag] is ready for allocation.

That's how we did it with our house purchase, and it sounded quite okay to us.
 

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