Construction financing, will I get money?

Hello, I have a question about whether it would work the way I imagine. I am currently renting but want to acquire something for myself and already have something in sight. However, I am skeptical if it will work out that way. I have €50,000 left to pay off. Renovations etc. on my own rented house. Income from the rented house is €1,000 per month. I want to use the house as collateral with a guarantee at the bank for the loan. The existing house has an estimated value of about €200,000. The house I want to buy will be renovated by me. The ground floor and first floor will be used by myself. The attic with a bay window will be rented out for €400-€500. And the new house will also be registered as collateral. I would then have the two houses as collateral. My income is €2,300 and my wife’s is €600, and rental income would be €1,400. The question is, in such a case, would I get a loan from a bank? Also with the €50,000 debt still from renovations. Or should I just forget about it. And if so, how much could one expect given the income and assets? I am 37 years old. The job is permanent and cannot be terminated. Thank you for the response and help.

Hello, maybe you should learn a few basic things so that you can express yourself properly (also towards a bank).

For this, I recommend you to google "Bürgschaft" and "Grundschuld."

And then a few basic pieces of information are still missing. Off the top of my head:

[*]Children?
[*]Rent costs (cold)
[*]Current savings rate
[*]Installment amount of the existing financing
[*]Total costs of the new project
[*]Equity

Basically, I don't yet see a reason why it shouldn't work, but also not yet that it will definitely work. There are simply a few to many pieces of information missing.

Hello, there are 2 children aged 6 years. The house would cost approximately 250,000 euros with renovation. I would not have to pay rent anymore since I am moving in. Unfortunately, there are no savings or similar, as everything went into the renovation of the existing house. I would like to include the debts in the newly taken loan, so that only one credit would need to be paid off. Currently, I count 500€ cold (rent). But that would only apply for a short time. That then falls away. And I count 600 euros towards the existing credit. That also then falls away.

Hello, there are 2 children aged 6 years. The house would cost about 250,000 euros with renovation. I wouldn't have to pay rent anymore because I would move in, unfortunately there are no savings or anything because everything went into the renovation of the existing house. I would like to include the debts in the newly borrowed money so that only 1 loan remains to be repaid. Currently, I count 500€ cold rent. But that would only be for a short time. That will then go away. And I count 600 euros for the existing loan. That will also go away then.

Well, the 600€ for the current loan won't go away if I understand you correctly but you want to bundle everything into one, which in my opinion will be difficult, but that doesn't matter that you have to continue bearing this burden either in the new loan or in your old one.

Best regards

Erik

Doesn't it work to say I pay off the 50 thousand by replacing the entire loan? So that I, for example, pay 1000€ per month. So that the existing loan is paid off. Or would it be more interesting to just increase the existing loan and have it recalculated for the costs of the house renovation and so on? Would that be better or should one completely forget about such an idea?

You will not be able to terminate the existing loan (with fixed interest rate agreement and secured by [Grundschulden]). How high is your average taxation according to the tax return? Probably not much remains from the 1000 euros current rental income after loan and taxes.