Consumer credit as equity

It can't be that everything depends on this equity.

Well, what happens with financing without equity and with limited income, you could see for example in the USA. Living the whole life on credit?

Other families also build and have considerably less available.

But they have equity or build with the Deutsche Reihenhaus or something similar. Your T€ 180 for the house is a bargain. What else has to be paid in addition?

I strongly recommend reading .

Somehow the ideas about how to even build here are getting crazier. Subordinated loans do not become equity just because they do not burden the land charge in the land register. Additionally, the plot is expensive in relation to the house. That leaves little for the house. Your wish to finance with only 2% repayment over 10 years at that amount is pure desperation.

At the moment, it is like this. I would only finance such amounts with a household income of at least €5,000, at least €100,000 equity and a fixed interest period of 20 years. With higher income, 15 years is also possible.

But this is just my personal opinion and experience with an almost identical construction sum.

Wasn't there someone earlier who called this "debt-financed equity"?!

But it was more about the "last 10K" to break the next lending limit

Somehow the ideas to be able to build at all are getting crazier here. FK does not become equity just because it does not burden the land charge in the land register. In addition, the land is expensive in relation to the house. That leaves little for the house. Also, your desire to finance with 2% repayment only for 10 years at that amount is pure desperation.

At the moment, it is just like that. I would only finance such amounts from a household income of 5k€ and at least 100k€ equity.

To be honest, I don’t understand your statement. It is simply the case that land here is expensive. I would also prefer 20€. And the two percent is only for ten years to get the rate to 700 euros. After the ten years, I would repay at 5%. That means twenty years at 1500€ with a remaining debt of 260k. I don’t know what that has to do with desperation. I can pay 450k but the bank just won’t give it if you don’t bring 80k. One could almost think every German has 100k on the side. Well, I will talk to the bank about what is possible and then we will see. And in the house, we don’t have many demands. A garden, heating, sockets, and walls. I don’t need parquet or real wood doors. I don’t have that in the small three-room apartment now either and I also pay 1000€ rent.

I once talked about a similar construct with an acquaintance who works in a bank. The people from the case back then ended up in private insolvency. Extreme example, I know. Why is your equity so low? Living beyond your means? If yes, can you even limit yourselves enough to pay off the little house?