Financing house construction is feasible

About the TE Seat88: Scaring yourself is not an option. But staying realistic is also good. You don't have to plan for thousands. The standard toilet and the standard washbasin are white, round, and you can wash yourself. Works. The standard faucet can be turned on and off, set to warm and cold, good. The fitted kitchen, a topic for burning money: Ikea my tip. With assembly 4500,- Everything there, everything included. Interior doors. White smooth. Done. You can paint the wall colored. The front door, the Schlossallee model or the "Auf Zu Dicht" model? The tiles: we are allowed 25,-/sqm. There is plenty, really plenty for that. Pictures, glass blocks, etc. are then out. Outside: 30 by 30 sidewalk slabs. That was enough before, it's enough today. Roof: We are allowed Braas Doppel S in anthracite, rust brown, red. What more do you want? Sockets: we are allowed 46 plus one outside plus two times TV plus one telephone. That's something already. Driveway: Gravel works too. Garden fence. I don't need one. If the neighbor wants it, let him put it up. We had some leftover from the earthworks, from that the excavator driver made a small embankment as a border for 240,-. That is enough. You can seed the lawn yourself - etc. Conclusion: With discipline and the question "Do I need this or do I just want to have it?" you get through all the selections well. Professionally, I have already carried out several construction projects. Old rule: Say no. First always no. Then nothing gets out of hand. Last project: Architect's estimate 321 thousand, result 316 thousand. And that with public funds.

Nice post, thanks

No, not unfriendly, rather unstructured, presumptuous, and arguing past the questions.

Sorry if I write it like this, but this is exactly how I feel about your posts, because you like to pretend as if one can discuss financing amount alone without considering other – here partly implied between the lines – concerns regarding the BV.

Let me put it differently: from my point of view, the possible financing amount does not match the BV at first glance. Yes, of course it is possible that the OP together with his wife can service a loan of €220K from their income – but he still will not get it because that does not align with the normal lending value.

The house has a value of:

- €30K land (whereby the OP himself has already defined this as an absolute last resort)
- €150K "turnkey"
- Own contribution ... I now generously estimate it at €50K, although probably not a single bank will go along with that. Realistic is rather €20 to max. €30K.

Ergo a house price/value of max. €230K, which with approx. 70% lending value leads to a loan amount of about €160K. Adding €15K equity makes a total of about €175K.
With an own contribution of €25K, a house/lending value of €205K/€145K results.

Question for you: where do the remaining €50K (minimum) come from? From what means are finishing costs supposed to be paid? What about development costs etc.?

I’ll keep it short: whoever tells these two people that they can get €220K should also explain under what conditions they will receive the capital. If the lending value is to increase, higher securities are usually required (i.e. other real estate, if available) or guarantees, or the additional amounts are granted as consumer loans or similar, since of course the risk for the bank increases, which logically must be reflected in the interest rate.

Many other users see it the same way, that the financing has a fundamental flaw from the start; arguing this with examples of incurred costs is, in my opinion, completely legitimate and also serves future builders to look at the whole thing a little more detailed and transparently.

The pure financing discussion about sum X, which you have in mind, does not help in the end and it is completely irrelevant whether you handle it in different forums or within one topic, although I find it quite sensible to do it in one topic/thread. After all, these things inevitably belong together.

Best regards
Dirk Grafe

I wanted to preferably discuss the financing here and question the construction and costs in another thread. Otherwise, everything gets mixed up; we have so many subthreads here.

That is understandable

Not a nice culture here, people get reprimanded,

No, not at all. The OP simply used this subforum... he’s not the first to do so.
But we don’t reprimand him for asking about his interests in the wrong forum; rather, we address his problem. Because the problems/questions somehow overlap, you don’t have to be too strict regarding the “correct” subforum.

Whether you as a user or we then have a problem with that is secondary. Ultimately, the OP should get the maximum amount of information.

This OP here had a question regarding financing.

No, not at all. He asked whether something would be possible for that amount of money - and he got that answered sufficiently.

Namely: it will be tough, it might work, but probably not.
It doesn’t matter whether the OP takes this circumstance well.
We don’t want to glorify anything here in the sense of “go ahead, it will all be fine”

No, not unfriendly, rather unstructured, presumptuous and arguing past the questions.

Funny: Everyone else sees exactly this in your own argumentation (as you can clearly see from the many previous posters....). You truly seem to me to be one of the most unreflective people I have ever seen in a forum.

we are not some "make a wish forum" here. We don’t just hand out niceties but sometimes open eyes and I would even claim to sometimes protect from private misfortune.

When the OP comes up with a cheapest offer for a house combined with low income and hardly any own capital and children on the way, any normal-thinking person throws their hands up in horror.

You make money from the financing, so you’ll see it "soberly." Maybe a client will also bail on you.