Financing a house without equity

2019-12-17 09:00:13

I believe that people with their affordable houses under 200k are cheating on the cost calculation on the one hand, as especially outdoor facilities, garage, kitchen, etc. are left out (perhaps also the incidental construction costs are missing), on the other hand there is a lot of own effort behind it, which goes far beyond flooring and painting work. Craftsman families in reserve help enormously. I don’t see any of these conditions with Frido01

Then 200,000€ remain for everything else... wow. I think you realize yourself that this doesn’t add up? Don’t let yourself be dazzled by numbers like 175k here.

What do you mean by “don’t let yourself be dazzled” ^^ it is really the case here that there are different kinds or states of mind regarding how everyone can or wants to live. One builds a single-family house with 160-180 sqm, okay, then it is understandable that you have to reckon with more. I am really only talking about the house, outdoor facilities etc. are not included, that’s correct. Equity capital is intended for these things (also flooring and painting work). Through connections (e.g. brother-in-law in a painting company) you can save even more. There are always possibilities and as I said, every case is individual. I just can’t hear anymore that almost every inquiry here is dismissed with the reason “too little income.” The OP(s) have surely already thought about it and don’t approach the matter too naïvely. Sorry, had to get that off my chest.

2019-12-17 09:14:14

If you are so skilled at handiwork, I would look for something used.

Or a smaller construction company that handles the shell construction and arranges craftsmen for you for the trades not covered by EL.

There are indeed cheap options, but they don’t just skimp on "luxury," but also on standard and quality. Even with cheap options, there is a positive number behind the calculation. You can save money by making compromises during the interior finishing. But is that what you want? Underfloor heating is standard nowadays.
60x60 tiles and country house floorboards are about appearance and don’t bring any advantages.

Talk to the bank about what you would be able to get and live for a while as if you were already paying off the loan.

I would wait with building. You are young. In 10 years, you will only have reached the average age of homeowners.

2019-12-28 17:43:10

I managed a somewhat similar project, relatively speaking, somewhat "smaller" in terms of costs, with somewhat less income. In the end, it was about 10% more expensive than planned, and at least I had the incidental purchase costs and 10% equity. It’s really not comfortable (financially)... and now I pay overall about 2.5 times as much for housing as before in the rental apartment.

I stick to my point: at least the incidental purchase costs should be there, and if you can’t set anything aside right now, the project won’t work. Wait at least until the wife earns again, save until then!

PS: for a plot of land costing €183k, with realtor commission and property transfer tax, incidental purchase costs of €20-30k are fixed.

Financing a house without equity

Spike86

haydee

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