StefanW76
2016-09-28 17:17:33
- #1
Hello everyone,
until now a silent reader, I would also like to ask a question. Further down there is a similar post, but it does not clarify my question.
I’ll give the following example. Assume these are all the costs incurred until moving in:
House construction costs: 300,000 Eur
Additional construction costs: 30,000 Eur
Kitchen: 15,000 Eur
Land: 100,000 Eur
Liquid equity capital: 10,000 Eur
Assuming I already own the land and it is fully paid for, then I need 345,000 Eur to realize the above. The land is counted as equity capital with 100,000 Eur, so that makes 110,000 Eur equity capital.
However, the bank only considers house construction costs and additional costs as value-increasing and only finances these. Right? Then I get 330,000 Eur from the bank. Or do I get 345,000 Eur? If I then tell my advisor: transfer 15,000 Eur for the kitchen, he would say that this is not part of the financing.
Now I don’t understand how I come by the remaining 5,000 Eur. What would I state as my equity capital at the bank in this case? Or would I say that the land is worth 100,000 and I only paid 90,000 of it?
Maybe I have a knot in my head right now, so I would appreciate an exemplary explanation in simple words.
until now a silent reader, I would also like to ask a question. Further down there is a similar post, but it does not clarify my question.
I’ll give the following example. Assume these are all the costs incurred until moving in:
House construction costs: 300,000 Eur
Additional construction costs: 30,000 Eur
Kitchen: 15,000 Eur
Land: 100,000 Eur
Liquid equity capital: 10,000 Eur
Assuming I already own the land and it is fully paid for, then I need 345,000 Eur to realize the above. The land is counted as equity capital with 100,000 Eur, so that makes 110,000 Eur equity capital.
However, the bank only considers house construction costs and additional costs as value-increasing and only finances these. Right? Then I get 330,000 Eur from the bank. Or do I get 345,000 Eur? If I then tell my advisor: transfer 15,000 Eur for the kitchen, he would say that this is not part of the financing.
Now I don’t understand how I come by the remaining 5,000 Eur. What would I state as my equity capital at the bank in this case? Or would I say that the land is worth 100,000 and I only paid 90,000 of it?
Maybe I have a knot in my head right now, so I would appreciate an exemplary explanation in simple words.