Financing Check: Building a House in 2.5 Years

The last plot in [heidbrook] is not an option for you? The advantage is that you can already check out the neighborhood a bit.

The "catch" with the IBA plots is that they have very, very strict design rules, with committees and boards and such – every draft has to be approved. Because of that, the houses end up being a bit more expensive (for example, 2 floors are mandatory). Allocation is done based on the time of submission or by lottery.

At least for the plots still available now, there will be no more lottery procedure. Even for the plots already allocated, the rush couldn't have been that great, otherwise those who were rejected would have immediately gone for a free one.

The "catch" indeed initially reads as if you have to firmly pick one of the offered houses. But ultimately, it’s completely fine. The house types simply don’t represent any great extravagances. Overall, it’s just the modern standard that is built in 95% of cases. And you have to orient yourself accordingly if you don't take one of the model houses (then without committee approval).
I rather read that the houses being 2-story means "fortunately allowed to be 2-story." Most would fight over that under old development plans and instead have to deal with knee wall heights.
The extra cost for a full floor is very low compared to the gained space.

Overall, you have a fairly relaxed situation up there for an actually very sought-after big city.

Hello
We can gladly take a look together at what you can afford.
I am happy to support you!

You can only send a private message after 100 posts, and I would think your suggestion here violates the 'no advertising' rules.

Regardless, I don't need a random financial advisor.

Congratulations, the devil always shits on the..

Didn't see it at all. Thanks. Well, I wouldn’t claim that we are the biggest bunch, but that is certainly a matter of opinion. At one point in my life, I was homeless.

The last plot in Heidbrook is not an option for you? The advantage is that you can check out the neighborhood a bit beforehand

Hi, no We actually don’t want to live in the south of Hamburg. Actually, we don’t even know right now whether it should really be the Hamburg outskirts. We spent a few days in Norderstedt and looked at everything, including the surroundings. Phew, you quickly forget how many people live in such metropolises. Now we live in the Vulkaneifel, and there we basically only meet the same 5 neighbors in the fields, if anything at all. We will have to approach this systematically again. One more question: when we then own the multi-family house and want to start a new construction financing, does it have to be mortgaged for more equity? Or is it enough to somehow provide it as collateral for a higher loan-to-value ratio at low interest rates? Because our equity won't really increase for now, sure, in the long run it will, but grandma wants a usufruct on a part of the rental income, which of course lowers the cash flow.

Well... for a bank, it is basically only a security when it appears in the land register (of the multi-family house in Düsseldorf). And then it is also pledged. If there are no other debts on the house, I don’t see a problem there. Or you take the rental income as additional, ongoing income. But that has nothing to do with equity. Or you do both. (probably the most sensible) You did write that you have an appointment with the tax advisor regarding the gift. So I assume you will keep an eye on the gift tax issue... Depending on the degree of relationship, that can initially reduce your equity significantly.

Yes, unfortunately we do not yet know how the tax office will estimate the value. The appointment is only after our [urlaub].