Experiences with construction cost savings through self-performance?

  • Erstellt am 2024-10-20 16:03:24

BungaSeppel

2024-11-06 13:02:30
  • #1

Garden work and kitchen do not run through construction financing anyway. In our case, Interhyp and the three banks we contacted directly agreed on this. A kitchen and some flowers in the garden (I know, I exaggerate with the latter, but that is the basic mindset of the banks) probably do not increase their security in case of default.

I think you are confusing official equity (which definitely counts towards the investment sum, proof of existence must be provided) with cash, which you later need for private stuff like kitchen, new furniture, etc., which the bank does not care about. The real equity must flow into things that officially increase the value of the house afterwards.

In our final chosen loan, it was explicitly a feature that 50% of the official equity could be spent last. In all other loans, this money would have been used first. The principle is also understandable: the banks want your house to be worth more at any time than the amount you owe them. If you are allowed to spend your equity last, but meanwhile squander it and then go bankrupt with a half-finished house, the bank is at risk.
 

nordanney

2024-11-06 13:16:14
  • #2
That is exactly the only reason.
 

11ant

2024-11-07 14:30:09
  • #3

This can indeed be adequately addressed with simple means ...

... which I consider at least the royal road, if not even the only sensible one.
 

nordanney

2024-11-07 15:45:17
  • #4
Which is totally nonsensical, on the one hand to take out a loan and on the other hand to have money (interest-free) lying around without access to it.
 

11ant

2024-11-07 16:12:36
  • #5
That is probably a philosophical question that one has to coordinate with their financier: from my point of view, it is nonsense to first reduce one's equity to zero and become illiquid above all. Illiquidity is the harbinger of insolvency. A smart businessman gives up liquidity last; he would rather accept less performance once in a while. No general ties himself up at first and drives himself into a corner. Overview, striking power, and agility make the winner.
 

nordanney

2024-11-07 16:17:19
  • #6
One can philosophize a lot. But the fact is that equity capital is the absolute standard in advance at all banks. No matter what you think about it. There is a reason not to use and state everything for financing but to keep some as a buffer.
 

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