Construction financing without equity capital, but with other liabilities

the house is basically given away for €50,000, you basically buy the land. these houses can still be really good in part (except probably the insulation) and with €30,000 you can get the essentials done (on your own). (the house I sold brought in €68,000 and with €30,000 you could have done quite a bit, although you could also have lived in it great with 0 euros (everything still in condition for 10 years+ - dry cellar, tight roof, windows in top condition, relatively new heating, etc...) however, your conditions are a bad joke. you have €12,000 student debt but now only earn €2,100 gross. either bad studies or dropped out. you want to finance well above the loan-to-value, that will really add on the interest (if at all). to me, this looks more like a crazy idea and the name also says where this idea came from.

I think this is a troll. And you are even feeding him...

First of all, I would like to be polite and thank you for the responses given!

To be honest, I am somewhat shocked by the answers. Not because there were no "desired" answers as such. No, it is the assumptions, sometimes even insinuations. I wonder if this is really necessary.

Admittedly, at first glance my question may look like a "crazy idea." I come from the Rhineland, and here there are sometimes houses from €30,000, with plots from 500sqm (in the case of foreclosures usually considerably cheaper). That these properties then require certain investments is, I think, undisputed. Ultimately, it would need to be examined on a case-by-case basis which investments exactly. The question is always: what do I want or what is sufficient for me.

As already described in my question, I am not unskilled in craftsmanship. That the result is not always equivalent to that of a true professional is, I think, also clear (although there are also professionals who do not work very precisely. However, that is another matter).

If I did not have a few such cases myself in my (extended) circle of acquaintances, I would accept if you assumed a certain lack of judgment on my part. There financing without any equity capital has worked easily. A condition was sometimes that existing financing had to be paid off beforehand (for example, by a loan from mother/father/uncle/aunt).

Why, how, and for what reason it ultimately still worked with the financing could probably only be revealed to me by the responsible caseworker.

A good year ago (the situation was identical, only the employment was still temporary) I inquired "superficially" at a credit institution. There they saw the possibility, for example, of a building savings contract. However, an acquaintance strongly and directly advised me against it. Due to various private events, I also put the matter on ice again.

In conclusion, I would like to add something: In my opinion, personal circumstances also play a considerable role. If someone is indeed frugal (equity capital of €5,000 was available until about 6 months ago), does not lead an extravagant life, partly provides for themselves, then €2,100 (or soon €2,400) for one person is quite a decent income.

So your 2,100 euros are AFTER taxes, so net?

I come from the Rhineland and here there are sometimes houses starting at €30,000, with plots from 500 sqm (foreclosures usually significantly cheaper).

I also come from the Rhineland. Here you actually almost always have to add a zero for a house with more than 500 sqm.

But well. The Rhineland is simply large.

You are talking about foreclosures. To participate there, you have to deposit 10% or have a guarantee/cashier's check with you. If successful, there is then the possibility to finance the rest.
So you are initially out with foreclosures.

If I didn’t have one or the other such case in the (extended) circle of acquaintances myself, I would accept if you attributed a certain incapacity to reason to me.
There financing worked flawlessly without any equity.
The condition was partly that existing financings had to be redeemed beforehand (for example, by a loan from mother/father/uncle/aunt).

Why and how it ultimately worked with the financing could probably only be revealed to me by the responsible case worker.

It’s quite simple. Either they got the whole thing done before April 1st of this year (since then the new WIKR also applies) or the relatives not only redeemed existing liabilities through a “family loan” and possibly added some extra but also agreed to register a land charge on their own property. In other words, if the person can no longer pay the installments, the bank still has access to the second mortgaged property.

People rarely mention such things (you can’t really brag about it).

There one saw the possibility, for example, of a building savings contract.

Hmm, you should have. A building savings contract of a reasonable amount with regular payments would be an ideal component in your case, especially because it can practically leverage the equity.

But this is also not something you can work with after just one year. Moreover, because your equity has developed rather negatively.

Personally, I have several and building savings contracts also play a big role in our financing.

But we are getting off topic. If you cannot liquefy money within the family, I do not see how your plan is going to work at the moment.

Otherwise, the only help is saving, saving, saving...

By the way, you are not alone. About 50% in Germany are tenants.

First of all, I would like to be polite and thank you for the answers given!

To be honest, I am somewhat shocked by some of the answers. Not because there were no "desired" answers as such. No, the assumptions, sometimes even accusations. I wonder if that really has to be.

Admittedly, at first glance my question might seem like a "crazy idea." I come from the Rhineland and here there are houses from 30,000€, with plots from 500 sqm (foreclosures are usually significantly cheaper). It is undisputed, I think, that these properties then require certain investments. In the end, in each individual case it would have to be checked what investments exactly. The question is also always: what do I want or what is sufficient for me.

As already described in my question, I am not unskilled in handiwork. It is also clear, I think, that the result is not always equal to that of a real professional (although there are professionals who do not work very accurately either. However, this is another topic).

If I did not have one or two such cases in my (extended) circle of acquaintances myself, I would accept if you assumed a certain lack of judgment on my part. There financing worked without any equity capital without problems. The condition was sometimes that existing loans had to be paid off beforehand (for example by a loan from mother/father/uncle/aunt).

Why, how, and for what reason financing ultimately worked, I could probably only be told by the responsible case officer.

A good year ago (the circumstances were identical, only the employment was still temporary) I inquired "superficially" at a credit institution. There they saw the possibility, for example, of a home savings contract. However, an acquaintance advised me against it directly and emphatically. Due to various private incidents, I put the matter on ice again.

Finally, I would like to add something: In my opinion, personal circumstances also play a not insignificant role. If someone is quite frugal (equity capital of 5,000€ was available until about 6 months ago), does not lead an extravagant life, and partly provides for themselves, then 2,100€ (or soon 2,400€) is a quite decent income for one person.

Unfortunately, I have already had to experience these things here as well. Stick to your thing and don’t let yourself be diverted from your path here. The right authorities will put up a barrier for you if it’s financially not feasible.