Financing model for expansion of a barn/warehouse

In the selection of banks, we are certainly limited by the conditions of the project. Local banks, such as Sparkassen, etc., are also possible through annuity loans. How do you come to the assumption that we might be taking on too much with the project? For me, the question is less whether we can afford it, but rather which model is the best.

Taking on debt in the sense of "I actually can't afford this" is absolutely not the case here. Moderate financing level with a proper liquidity situation.

I rather see that you - due to the property structure - a) buy expensive conditions (which you can afford) and b) burn a lot of money compared to a "simpler" property because here the apartment in the form of a terraced house is worth less than you spend on it (a) due to b)). You just have to be aware of that.

How do you come to the assumption that we might be overextending ourselves with the project?

The sentence was not specifically aimed at you, but at projects where the bank(s) only want to finance with a home savings contract variant and do not offer annuity loans as an alternative.

From my point of view, I understand the concerns. We have to accept the more expensive conditions if we want to carry through the project. A new build in a new development area is out of the question for us for many reasons and would be by far more expensive with the planned equipment. However, we are aware that the value standing opposite would be higher. The property offers us, despite the higher financing costs, a unique combination of the resulting living space + ancillary rooms, the plot, and the immediate proximity to the family. Based on the textual descriptions, the project is also difficult to imagine. However, I don't want to turn this into a planning thread now.

I don’t want to turn this into a planning thread now.

Not here, but elsewhere in the forum it would certainly make sense (then linking here would be best).

1. I claim that no project presented here has become worse as a result. Many were saved or significantly improved.

2. It would certainly be very interesting for the readers, either because some have building as a hobby or because other projects can benefit from your experiences (this is basically what such a forum lives on).

Think it over again.

I don’t want to turn this into a planning thread now.

Too bad, maybe in the appropriate forum? What about an independent financial advisor like Dr. Klein and co? And then also have it calculated with "kfw wohnraumförderung/schaffung"

We want to provide the 50,000€ own contribution, as it is very suitable due to the competencies in the SHK area within the family.

Are you getting materials for free? Labor hours are not worth 50,000€ that could be saved in this area. If I were you, I would explain the word own contribution: for the bank, it is a placeholder for calculations; for you, it means that you will get 50,000€ less in necessary funds and will consequently have that amount less. This is called a muscle mortgage because you have to earn the money yourself. Or, in your case, possibly free through family. But that doesn’t amount to 50,000€?! Then money is still missing for materials?