Construction financing without equity as an option?

The two statements do not fit together 100%, do they?

These are also not necessarily the same scenarios. It is quite certain that many houses will be compulsorily renovated in the next few years. This will definitely make the renovation here more expensive than it would have been two years ago. Not to mention all the price increases due to material shortages. The OP now wants to buy a house significantly below market value and stay below market value even including renovation. The risk is high that the calculation won't add up. Unfortunately, the details about the house are missing and no one here can reasonably assess it. But there is also a risk side to this. The OP will take on certain obligations with the renovation, and if he miscalculates, it will affect the reserve. At the same time, the ratio of equity to loan and also equity in relation to age and income is not good. The theoretical solution to simply sell in case of problems is also only theoretical. For the foreseeable future, we have the combination of Corona, supply chains, and war, so a lot at once. There is little missing to a severe economic crisis. And our prosperity is not a given. Even supposedly crisis-proof jobs can find out that they depend on a supply chain that will no longer exist as it did. I don't want to paint the devil on the wall here, but currently is not the time to make wild financings and believe that prices can only go up.

... remain below market value even including renovation. The risk is high that the calculation does not add up. Unfortunately, the details about the house are missing and no one here can assess it properly.

It would be interesting to know exactly what needs to be renovated how quickly and whether the house and garden can be used immediately, even if in a limited way.

For the foreseeable future, we have the combination of Corona, supply chains, and war, so a lot at once. It doesn’t take much more for a severe economic crisis.

For me, though that doesn’t have to apply to the thread starter, this is exactly the combination that would make me feel safer in my own house with a garden (among other things for supply reasons) than in a rental building with partially desperate people who, in the event of a severe economic crisis, live with too many people in too small apartments and possibly face owner-occupier termination notices, which are also allowed for nephews and nieces.

This is not meant as contradiction or counterargument on my part, ;-) I’m just following a different approach. :)

€720,000 loan is quite a figure. Similar in amount to our loan. However, would not finance the additional costs. We have just under €8,500 net and our limit is €700,000. We don’t want more either. It should be paid off eventually.

720,000€ loan is quite a figure. Similar loan amount as with us. However, I wouldn’t finance the additional costs.
We have just under 8.5k net and our limit is 700,000€. We don’t want more either. It should be paid off eventually.

I can’t understand how people in these salary groups build/buy a house with so little equity...

But everyone has to decide that for themselves...

Good morning,

and what do today's conditions look like?

1.87% for 15 years is probably already several weeks old... currently, with 60% amortization (so a lot of equity), the rate is already over 2% for 10 years.
without equity, for 10 years, it is around 3%

Currently, with a 60% payout (so a lot of equity), it is already over 2% for 10 years.

How does that fit together?

The base interest rate for 20 years is just above 2.20%, which is good.

And both are supposed to be current?