Financability of a construction project

The question that arises for me is: Why do you only have 15k equity when you earn so much and have been with the same company for 10 years? You don't necessarily have to answer that to us, but to yourself.

Well - my assumption here: The 50% single-family house surely had to be paid off somewhere. A large part of the savings rate probably went into that. However, a few extra coins should still have been earned/saved on the side ;).

Those are quite ambitious goals for Kaarst. We are currently building 125sqm in Holzbüttgen for 270,000 EUR + land, and it won’t be a villa either. More like almost social housing plus electric shutters.

What will be held against you is the low equity with 5,000 EUR income/month = high standard of living/fancy car etc...

Who owns the other 50% of the existing property and who lives in it?

I was thinking more about inheritance because of the 50% now. But you are right, that could of course be the case.

Hello Dirk,

if I read it correctly, does not want a mortgage/land charge on his 50% property. Therefore, this would not be counted as equity.

Understood, but that doesn't help much. If the mortgage is actually to be excluded, there might be a small advantage in creditworthiness for the property ownership, but at the same time a large portion of the - factually existing - equity is missing, meaning the loan-to-value ratio would probably far exceed the usual 60%.

Then the only option is to significantly increase the savings rate for 2-3 years, although in my opinion it is not yet conclusively clarified whether the current property is even debt-free.

Basically, the income situation is good, so the OP probably just has to commit to a path, even if it looks somewhat different than planned.

I thought it was more about inheritance due to the 50% now. But you’re right, that could of course be the case.

Maybe we will find out yet.

Of course, but that doesn’t help much then. If the mortgage is actually to be excluded, there might be a small plus in creditworthiness for the property ownership, but at the same time a large part of the - actually existing - equity is missing, meaning the loan-to-value ratio would probably go far beyond the usual 60%.

Completely correct. Therefore, if he doesn’t want/can’t make any compromises here, it would result in a 100%/110% financing. Maybe he also rents out the 50% - then possibly the rental income (minus taxes, etc.) would still bring something. But ifs and buts. Let’s see what answers.