Construction financing without equity capital, but with other liabilities

Because from 2100 gross, depending on church membership and additional health insurance contribution, only about 1420 euros net remain. With alone 200 euros diesel costs for the commute, you also have to calculate reserves for the car and its maintenance. Paying off existing debts, then things like insurance, electricity, rent, groceries, etc. This is not necessarily the ideal condition for building a house.

That is correct. Net, I have just under €1500. More would also be possible (e.g. Saturdays), then I would be at just over €1600. From March, there will be a few euros more (pay raise), I will discuss everything else with the employer.

I pay €400 rent. Electricity €50 (I have intentionally set the advance payment higher. My actual consumption is around €30).

I repay the burden from my study period with €150 monthly.

Otherwise, I lead a fairly frugal (not stingy) life. The things I do are not really cost-intensive. And that will not change.

Normally, I still have a few euros left at the end of the month. This month, the vehicle tax of just under €400 came due. That is why nothing is left.

In fact, for a credit institution probably not decisive, it is the same whether rent or installment. The x€ are debited on the 1st of the month. Whether these x€ now go to Mrs. Schmitz or to the Müller bank.

And large investments would not initially be to be feared after a renovation. Provided, as written above, that you have had a professional take one or two looks at the property.

How frugally you live unfortunately does not interest the bank.

It has its living expenses as a formula.

For a 2-person household, I believe it was around 1200 euros per month without loan costs and other liabilities.

For a house, approximately 2.5 euros per m2 in additional costs are added.

I suspect without a guarantor who co-signs for you, nothing will come of it.

if you buy a house in need of renovation, it is hardly possible to accurately estimate the costs beforehand. However, with the low net salary, you don’t have the option to use part of your income for the renovation on the side. I actually can’t imagine that you can get very far with 30,000 euros for renovation. Just ask the banks, then you will know what is possible from their perspective.

LG
Sabine

To give you a small point of reference: At a bank well known to me professionally - as already wrote - a simplified income-expense calculation is created using flat rates and formulas. This allows the decision-maker to quickly estimate whether it makes sense to delve deeper into the case.

A (simplified!) calculation would then be based on the numbers you mentioned (1,500€ net, 80 sqm desired living space, older building)

Additional costs 240€ (3€/sqm for an older building, which then covers electricity, property tax, water, garbage collection, etc. etc. etc.)
Living expenses 700€ (minimum assumption, even if you spend less)
Car 200€ (minimum assumption)
Property insurance 50€ (minimum assumption)
Installment burdens 150€ (as you indicated from earlier studies and no, something like this cannot/should not be refinanced with a building loan)

This means that of your 1,500€ net, 1,340€ are already gone at this point and that’s before any building loan installments, life insurance, savings rates, etc.

Sorry to say it so clearly, but with 1,500€ your creditworthiness is significantly below average - especially since the residential real estate credit directive, but also even before that.

That is correct. I have just under €1500 net.

Then my statement in #4 stands. Sorry!
My fellow campaigners have posted enough explanations here.