Financing / Equity / Granny Flat - Fundamental Thoughts

  • Erstellt am 2021-06-30 21:08:16

AtLeastWeTried

2021-06-30 21:08:16
  • #1
Meal time,

I saved myself from feeding the rather detailed questionnaire since I actually want to start two steps earlier.

General about you:

    [*]Who are you? - :D
    [*]How old are you? - 41
    [*]Are there children? - 3 (not living in the household)
    [*]Are children planned? - No
    [*]What do you do for a living? - Employee
    [*]employed in own company (partner in GmbH)
    [*]How many hours do you work? - 40

Income and asset situation:

    [*]What income do you have (gross/net)? 3000,- € net
    [*]How much child benefit is there? -
    [*]Other transfer payments such as parental allowance, sick pay, etc...? -
    [*]How much equity do you have? approx. 250,000,- €
    [*]How much equity do you want to invest in the house project? approx. 200,000,- €



    [*]current cold rent - 585,-€
    [*]current warm rent - 715,- €
    [*]electricity - 50,- €
    [*]telephone, internet, mobile phone - 0,- € (runs through company)

Mobility costs:

    [*]company car - 0,- €

Insurance costs:

    [*]liability insurance (including pets) - 10,- €
    [*]household insurance - 20,- €

Living costs:

    [*]groceries - 400,- €
    [*]restaurant costs - 50,- €
    [*]care/drugstore - 50,- €
    [*]clothing - 200,- €
    [*]furniture 50,-€
    [*]miscellaneous - 200,- €

Savings contributions:

Other expenses:


    [*]maintenance payments? - 900,- €
    [*]loans? - 100,- € (student loan)

Income and expense totals:

    [*]total income - 3000,- €
    [*]total expenses - 2745,- €
    [*]balance - 255,- €
    [*]of which sum cold rent and dispensable savings contributions (e.g. savings rate for house)

I now have the following idea:
House with a granny flat, into which my father will move (1800 € pension - rent: 500,- € warm).
Possibly the company will rent an office room. That surely makes sense fiscally (gross/net), whether the bank is interested in such constructions and considers such rent payments is beyond my knowledge.
The house (approx. 180sqm total - 60 sqm granny flat) will be built with a focus on energy efficiency and architecture. (ground-source heat pump, photovoltaic, storage, surface heating/cooling) Additionally, it should be architecturally sophisticated. I was a consultant for regenerative energy systems in a previous life and am very well connected in the industry. A high equity share would be guaranteed.

Nevertheless: Plan: Plot (600 - 1000 sqm - approx. 200,000,- €) + total house costs 500,000,- = total costs 750,000,- € (with 200,000,- equity; 2x KfW 40+)

It is not my goal to eventually pay off this house. Rather, I am thinking of a usage period of 20-25 years. Afterwards, the house will be sold.
The goal is thus not a particularly cost-efficient financing, but minimal impact on liquidity.
I will build in the southern Berlin suburbs and assume a stable price increase in the coming decades. The focus on sustainability should keep the additional costs low and in combination with an appealing (but not extravagant) architecture as well as quality, ensure a high resale value.

I hope that relatively high equity will ensure a good interest rate, so that I end up with 1% repayment (preferably less...) at maybe 1200,- €/month. Minus 500,- rent leaves a remaining repayment of approx. 700,- € (or -300,- € rent company with -150,- net income) for me.

Our company is still quite young but is developing excellently, so I assume that my income will steadily improve in the coming years.

My specific questions are therefore:
- Am I totally crazy?
- Will banks agree to very low repayment rates with (relatively) high equity?
- Are rental contracts as mentioned here (office room to company) relevant to banks?

Thank you very much!
 

ypg

2021-06-30 21:57:01
  • #2

Yes :D




I read living expenses of 1000€
Alimony and loan 1000€

remain from a 3000€ net => 1000€

From that we deduct 500€ incidental and consumption costs, leaving you 500€ for the loan.
…..


Interest rate has nothing to do with repayment. At the moment, no bank offers less than 1% repayment; loans to individuals who still have outstanding liabilities are hardly financed at all.

And even if paying off the loan doesn't matter to you - it does to the bank. They don't want to continue financing an old property with high value.
 

nordanney

2021-06-30 22:14:32
  • #3
I (as a real estate financer) see a bursting bubble there. Mini-income (after maintenance) is contrasted by a large financing. I see exactly 0 reasons why you should get the loan. The equity is nice, but too low.
 

AtLeastWeTried

2021-06-30 22:27:44
  • #4


The 500,- rental income for the granny flat is not taken into account? What about the potential 300€ from the company? Would one have to define some kind of commercial unit for that? And how do you come up with 500,- € operating costs here? The thing will tend to be a plus-energy house. Trash, water, sewage, tax... that's it.
 

driver55

2021-06-30 22:27:53
  • #5

The equity is not too low after all, the monthly input is currently too low.
 

AtLeastWeTried

2021-06-30 22:36:26
  • #6
If I take the perspective of the bank, it looks as follows:
- A property as an investment form is practically free from total loss. The bank's money is thus "securely" tied up.
- Due to the high equity capital, a loss in value of the house over the term (1% per year) is unproblematic for the bank itself. The risk is therefore very low in combination.
- Low repayment means high interest income for a long period. And 1% repayment is not completely outside the norm.

Maybe you can explain the problems to me in more detail. Please primarily ignore the income; that is basically adjustable. My goal is a low financial expenditure.
 

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