I really find it shocking how EVERYONE here advises against building a house, that’s already quite extreme and very contrary to the "general" opinion. Presumably, I really must be the fool then. So here’s the serious question, what is recommended here? Buying a house per se is just nonsense and should only be done if you have 50% or more equity? It can’t really be due to 10 or 20% when considering the total amount over such a long period.
I can only repeat what I said last time:
On a large credit platform in Germany, the following loan-to-value ratios were realized at the end of 2015:
0-80%: 61%
81-90%: 23%
91-100%: 13%
>100%: 3%
An overwhelming majority (97%) paid at least the incidental costs from equity, if not even significantly more into the real estate financing.
Now you just have to keep in mind that the good prefab house salesperson earns about €10,000 - €12,000 in commissions on the financing and the house. Some really have to bend deeply for that.
No one here in the forum wants to sell you anything.
Renting is better than ownership? So that means all buyers, especially those with little or no equity, are totally crazy and almost certainly going bankrupt?
The ratio of renters to owners in Germany has been quite constant in recent years at 57% renters and 43% owners.
Yeah, maybe I’ll do a breakdown sometime, but under a different nickname, otherwise I already know the answers beforehand.
Why??? The house doesn’t get cheaper because of that.
With a similar situation description, the answers will be similar. With the same even the same...
Then it’s about the house, not the financing. Many more will want to share their opinions on house building in the house building forum.
Since I wouldn’t compromise with a significantly pared-down house or plot, we would have to wait anyway.
If I wouldn’t make compromises, we would be at just under €950,000 (in NRW; near Cologne). Now we are probably only at €500,000.
House depending on calculation of incidental costs, where I believe they are not so high due to kfw-55 and for a new build you certainly need less reserves than for an existing property, but whatever.
The €400 are for a new build. An existing property would be even higher. A new heating system in 15 years simply doesn’t cost even €2k.
And how irrelevant is equity from another loan? That is simply part of the total financing, goes through the same bank and is just a component? I look at everything overall, then I have my TOTAL interest costs and the whole thing is still much, much more attractive than it was 5 years ago for someone with 20% equity...
What am I overlooking?
That a bank really wants to accompany you on the way. So far you have only spoken with sellers and intermediaries.