Financing offer against offer with 10-year fixed interest rate

Hello,
we received an offer today, structured as follows:

Construction costs 214,756

Development 43,120
Additional costs 24,700
Total requirement 287,076

Mortgage loan 170,000

KFW 153 50,000
Equity capital 51,576
Own contribution 15,500

KfW 153: 50 thousand
Interest: 1.4
Repayment: 2.8

Loan: 170 thousand
Interest: 3.7
Repayment: 2

For both components: 982 EUR
(Special repayments and repayment adjustments included.)

We are freelancers and have about 3500 net.

What do you think? We have another offer with a 10-year fixed interest rate.

Thanks!

That just doesn’t add up at all.

The first cost estimate is just under €290,000. You want €220,000 as a loan and have €50,000 in equity. €20,000 are missing. Where are they coming from?

Initial price indications are always too low. How far along is the planning? Are the soil survey and foundation recommendation available?

The additional costs can still increase massively here. How do you plan to cover that?

Where do the €15,000 in personal contributions come from, what is that supposed to be?

Freelancer, that explains the high interest rates. How secure is your income?

With this professional situation, committing to only 10 years is risky.

The personal contribution is credited to the equity.

Personal contribution for kitchen, floors, outdoor facilities, house painting, etc. (have a workshop and craft experience)

Additional costs have been calculated (it is a leasehold); soil report is not yet available, but there is a buffer for that. The house is made of wood and therefore not as expensive as solid construction.

Where are the 20 thousand missing?

Ten years also seems risky to me; we have both been freelancers for over 10 years, and the income is quite stable (slightly increasing).

Please help me out.

Hello,

The house is made of wood and therefore not as expensive as solid construction.

I would like to have this statement explained in more detail :confused:

Best regards from the Rhineland

Hello,


I would like to explain this statement in more detail :confused:

Regards from the Rhineland

The solid houses that we liked were all considerably more expensive than the wooden house we decided on.

Hello,

The solid houses that we liked were all considerably more expensive than the wooden house we decided on.

Thank you. In essence, this means to me that you either decided on a shell house or on a low-cost provider in terms of wooden houses; otherwise, it just doesn't add up. Professionally built wooden houses – there are some small and good providers – are just as expensive as solidly built single-family houses.

Regards from the Rhineland