Finance a 1 million Euro house without equity?

I think I will unfortunately have to go that route, I will now sell 3 properties so that I am "financeable" for the banks. The banks seem to view the 11 properties and the income negatively, one processor said that many are deterred by the effort. 11 times land register is not so great

It is good that you have collateral. However, more important for the bank is that you can reliably pay your loan installment. Having to resort to the collateral means enormous effort for the banks (forced auction, etc.). And then 11 times that. Incidentally, with a solid equity, you will also pay less interest...

It is good that you have collateral. However, more important for the bank is that you can reliably pay your loan instalments. Having to fall back on the collateral means enormous effort for the banks (foreclosure, etc.). And then this times 11. By the way, with a solid equity you will also pay less interest...

I have now commissioned a broker to sell the first 3 properties, I am curious how long it will take me to find buyers for 3 properties.

At the moment the market is tough, buyers are lacking, economic slump + still high interest rate, although it has already gone down.

At the moment, the market is tough, buyers are missing, economic downturn + still the high interest rate, although it has already come down.

With this, you also exactly describe the dilemma of the bank. What collateral does it have in the context of the appraisal when the market is difficult, when you can hardly sell the apartment, etc.

But once again: Please answer the questions we asked you. Then you will surely also get an answer from bankers.

With that, you are exactly describing the bank’s dilemma. What securities does it have within the scope of the valuation when the market is difficult, you can hardly sell the apartment, etc.

But once again: Please answer the questions we asked you. Then you will surely get a response from bankers.

Sorry, I am a new member, which questions? I don’t quite get it yet, I just registered earlier today.

Sorry, I'm a new member, what questions? I don't quite get it here yet, I just registered earlier today

- Give us some information about the apartments and rents

Did you only declare the €3.8K as income to the bank or also the rental income?
Were you at a bank or with a broker?
...
What do the 10 apartments bring in monthly rent and what value do you estimate for the apartments?
Would selling the apartments even yield a profit?

These are the questions from the recent posts.

These are 11 individual properties, each of which must be appraised based on the material value. It can happen that the cash flow is good but the material value appraisal turns out terrible. Plus the 11-fold effort. Nobody wants that.

Hello Nordanney,

how do you come to the conclusion that the condominiums within a homeowners' association are appraised based on the material value? Nobody does that. Since these are 1-room apartments not suitable for owner-occupation, they are (with us) appraised using the income approach, so the value is probably to be set lower. Within Stuttgart, comparable values can also be used; outside the city, the data situation in Baden-Württemberg is so poor that a comparable value range is only depicted as a guideline. With these values, it would be 11 x small loans according to §24 + 1 full appraisal for the financing object. Nobody will want to do that work.

I work in this metropolitan region as a certified appraiser and architect at a credit institution.