Enough equity for house construction???

  • Erstellt am 2011-08-09 12:26:04

Lynx1984

2011-08-09 12:26:04
  • #1
Hello Julia,

whether that "is enough" you have to decide for yourself or find a bank that finances it – and on that point I don’t see any major concerns, as long as you can comfortably manage the installments. Basically, no equity is necessary – however, it is hardly possible to finance without it...

Roughly estimated, you would still need around 200k€ (including incidental purchase costs).
With a 10-year fixed interest rate and a moderate repayment rate of 2%, that would amount to about 900€-950€ monthly burden for you. The remaining debt after 10 years would then be about 150k€. There are plenty of calculators on the internet that can calculate this exactly according to your conditions ;)

Tip: Check the existing building savings contracts very carefully! Possibly the current financing conditions are better than the terms of old building savings contracts. Also, see if you can receive any subsidies.

With an equity ratio of around 25%, you are not exactly a AAA+ customer now – but still clearly in the green zone. From my point of view, there should be not much standing in the way of your house plan regarding the amounts.

Have fun with the further planning!

Best regards
 

Julia313

2011-08-09 19:40:36
  • #2
Hey,
thank you so much for your reply - that cheers me up a bit :-) Well, we will see what comes of it!!!
Best regards
 

Strandlaeufer

2011-08-15 11:23:03
  • #3
Hello everyone, please do not forget the additional costs. Notary and property transfer tax for the land. Additional construction costs, base plate, painting and floor coverings, outdoor facilities and garages, etc. for the house. 70,000.- equity with 270,000.- planned total costs is quite decent and good. However, it also depends on the monthly income. Currently, there are good offers. Even with a 15-year fixed interest rate, the interest rate is possible below 4%.
 

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