Construction financing without equity capital, but with other liabilities

So the 2100 are clearly shown as gross... How much is left for Skl.1? 1,600-1,700? I don't have a calculator at hand right now.

But please give me a tip where that is supposed to be in the Rhineland. Here in the Rhineland, 500 sqm in a normal location, if you're lucky, costs 150,000, rather 170,000 euros. And that without a house.

The right authorities will already put a barrier in your way if it is not financially feasible.

They already have. The bank had recommended a building savings contract to him.

The problem is that banks offering subordinated loans are rather rare (DSL + Hanseatic come to mind).

An acquaintance carried out a similar project. What I am writing now is therefore not personal experience but just stories from him!

He bought an older house (built in the 40s or 50s), unsanitary and unrenovated, over 2 years ago. The house cost him about €60,000. Here in our region, old, unsanitary existing properties are often available for such a price (or even less) with about 500 m² of land. His income is slightly higher than the income of the original poster. He is single and in his mid to late 20s. I don’t know how much equity was invested - but it probably wasn’t that much.

He also renovated and partially refurbished the house on his own. He did not hire any companies but did everything alone, partly with help from friends but mainly entirely by himself. Accordingly, the whole thing took a long time. From the start of the renovation to moving in, it took him 2 years! Besides a full-time job and private life, there simply isn’t much time left... I don’t know in detail what exactly he did, but it definitely included new windows, new wiring, and of course new bathrooms, floors, stair coverings, outdoor facilities, etc... I know he initially planned a renovation budget of about €20,000. And I know that this was by far not enough and in the end the whole thing became significantly more expensive. But I don’t know exact figures.

He has been living in the house for a few months now. And he is happy with it. He is a tinkerer and doer; the house is a labor of love for him, and he would not have been happy with a new build (not to mention that financially that was not an option). He needs his little house where he can always work on something. But he also says that those were two very hard years and it really takes a toll on your nerves and often you just don’t feel like it anymore and would prefer to throw everything overboard. This constant strain should not be underestimated! It’s a very tough time! At least if you do it all yourself, like he did. And one should not underestimate that such a project can involve a lot of unforeseen issues and in the end everything can be much more expensive than expected. In the end, though, he still got his own home quite cheaply. Overall, he probably paid maybe one third of what we have to shell out for our new build. But: It is and remains an old house. He did not do a complete gut renovation. He only did what was necessary. So, over time, additional costs will come up and of course many more working hours. The house has an extremely narrow, steep staircase. Small rooms and small windows. No underfloor heating. Oil heating. And so on... That is the "price" for the cheap house; if you don’t do a complete gut renovation and renew absolutely EVERYTHING, it remains an old house with compromises.

What I want to say: Such a project can be feasible. You just need to know what you are getting into and weigh for yourself whether it’s worth it. Investing hundreds of hours in the project and working hard—often completely alone, putting private life on the back burner for years(!), working every free minute on the project, investing a lot of money and love into it, and in the end still having an old house with many compromises. That would not be for me. But he is now living his dream. People are different and for him it was the right choice. But you should also consider what happens if a steady partner comes along. Does she want to live in this house or does she have completely different ideas? That can bring a lot of potential conflict!

Talk to your bank first and find out if they would support you in such a project. It might not be easy and/or could fail right there. But if you get the OK and it really is your dream and you are sure that you can and want to bear this strain (renovation, working hours, money) and that you can really do everything yourself (I think having companies do it professionally would definitely blow your budget!), then it can work. But it has to be very well thought through and should not be a spur-of-the-moment decision.

Lanini, you can imagine something like that with me as well.

As I said, I have lived about 99% of my life in a house. My parents' house. Also an old building that would require investment (new windows, doors, new wiring, floors, bathrooms). This has a plot size of about 2500 sqm, living space approximately 250 sqm. The investment of time and money would have been significantly higher here because although it is basically a two-family house, the apartments are not really separate.
Accordingly, some walls would have had to be built, doors relocated, masonry sealed in places, etc.
I would have liked to do this very, very much, but part of the family ([consent]) is opposing it. That is why the property will probably be sold in the foreseeable future, as it is too much work for an aging person alone (apart from investments for patchwork).

I am aware of what an old building means.
Apart from the fact that a lot of working hours have to be invested, I am not really under time pressure. Whether the renovation takes 24 months or 29 is not really tragic for me as a single person.

If I consider buying a property, it should have certain basics. Of course, compromises have to be made, that is a given!
But certain exclusion criteria are present.

A year ago, I discovered a property that was interesting for me. 580 sqm plot, living area 70 sqm. Very quiet location (optimal for me). Only 6 windows were present, the roof was okay so far.
There was no heating, but a gas connection was already available. This would not have been a problem for me, as I have last heated with wood and still have some cubic meters in stock. I get wood cheaply anyway.
What scared off many interested parties was the completely overgrown and wild plot.
The property was listed for 30,000€, finally sold for 25,000€.

Of course, such an old building carries risks. However, I think if a professional has the masonry and roof inspected, the biggest danger is averted. Provided you renew all the wiring, windows, etc.

For me personally, the freedom to be my own master, to always be able to do something (even if it is just mowing the lawn, planting potatoes, etc.) is paramount.

Of course, it would be optimal if the house were closer to my workplace. I currently have about 200€ pure diesel costs per month.

Regarding the matter of the building savings contract. According to the caseworker, it was intended that this would be paid out in advance and then I would pay into the building savings contract. I don’t know how this is called in professional circles. But this was already 12 months ago. If guidelines have changed, then this offer probably could no longer be realized today like that.

However, one fact is absolutely incomprehensible to me:

A married couple, both employed. Income (together) 4500€ gross. Equity 30,000.
A loan for a new build of 250,000€ is approved.
An individual without equity, income 2100€ gross, loan amount 80,000€ is not approved.
Even a consultant at a bank could not give me an answer as to why the loan with the higher risk is granted and the other loan is not.
Now you might think, because of the two incomes. In my opinion, however, this is not security.
How can something like that be?

could it be that you are confusing gross with net? You throw numbers about salaries into the room, this also applies to yours, the answers here are based on that...
Best regards

No.

Which of my statements gives the impression that I could not differentiate between gross and net...

The salaries I mentioned are given in gross.