Decision house purchase: Existing property or new construction?

  • Erstellt am 2024-01-08 18:54:51

haussuche123

2024-01-11 19:08:34
  • #1
: Thank you for your contribution. We will definitely recalculate very precisely how we will approach the project existing property and/or new construction.

Today we had an appointment with the financing advisor, who went through different calculations with us. Soon there will also be an appointment with a building expert, so that we can look at both properties again with an independent expert.

Assuming we would decide on one of the two existing properties. Originally, we thought we would fully finance the purchase price (except for incidental purchase costs) and use the equity for the first major renovations. Now the advisor told us today that in such a case the bank would still assume a 100% financing because with our equity we could theoretically do whatever we want, meaning the bank would have no security that we actually invest the money in the renovation. Accordingly, they would also apply the worse interest rate. Does that mean we have to obtain quotes from craftsmen etc. in advance and then add these costs to the financing, so that the original €235,000 property value becomes €335,000 and we simply contribute €100,000 of that as equity? Or how is that done, because so far our equity has been considered as 0....
 

Kugelblitz

2024-01-17 13:01:34
  • #2


I can only describe my own situation to you. How the mortgage lenders calculate/count your equity capital I do not know.
As a tip – have yourself advised by the big mortgage lenders (Interhyp/Dr. Klein). Of course, I would also go to your house bank and knock on their door.

We have a purchase price of €325,000 and invest another €330,000 in the renovation.
We indicated €190,000 as equity capital and another €50,000 as personal contribution in the renovation.
These €50,000 were then counted as equity capital.

And one final tip – for an energy-efficient renovation, it is also worthwhile to check with the KfW.
We have the KfW program 261 – €150,000 at 1.65% interest.
 

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