Debt restructuring in construction financing

2016-03-18 07:59:13

In our case not, which could possibly be because it is our [Hausbank].

2016-03-18 08:15:46

Hello forum,

I am currently repaying a private loan of about €7000 with monthly installments of €120. Since I am employed by the family and have a relatively secure job, I set the installments that low.

Now my better half and I want to build a house. I was at Interhyp today and unfortunately he told me from the start that you cannot include the private loan in the construction financing, but only costs related to building the house. For example, laying tiles is allowed, but laminate flooring isn’t. Wood stove yes, kitchen no.
I didn’t really get any clarity from the conversation. We would pay the notary and real estate transfer tax, the rest must be financed, including the furnishings.
Was he talking nonsense or is this really not possible with such financing?

Many greetings and thanks in advance.

If you have to borrow €7000 privately, you shouldn’t even think about building a house. Unbelievable what ideas some people come up with :eek:

Well.. Peter is happy..

2016-03-18 09:16:23

Hi,

If you have to borrow 7000 EUR privately, you shouldn't even think about building a house. Unbelievable what ideas some people come up with :eek:

Well..Peter is happy..

I would have tried to express it more diplomatically, but you can't disagree with Steffen there. The situation doesn't sound like the OP should even consider building a house... That's going to go wrong!

Best regards,

Andreas

2016-03-18 09:46:26

Hi,

I would have tried to put it more diplomatically, but you can't really disagree with Steffen there. The situation doesn't sound like the OP should even consider building a house... This will go wrong!

Best regards,

Andreas

Life is no pony farm :) You can be more diplomatic about such things with friends and family. There is no need for that here...

2016-03-18 10:45:21

True, in the anonymity of the internet, you can really mouth off, troll around, and act all tough. Finally, no need to consider the people who know you, respect.

2016-03-18 10:50:12

But the bank charges a princely amount for that.

Shouldn't that depend solely on the loan-to-value ratio? If the value of the property supports it, it should basically be irrelevant to the bank if a small portion of the money does not serve to increase the value. If that weren't the case, the bank would technically also have to take a close look when financing expansions that do not increase the value of the building, or perhaps even decrease it (e.g. many tiny rooms to accommodate the 8 children).

Debt restructuring in construction financing

ONeill

Steffen80

andimann

Steffen80

oleda222

Vanben