Financing project as a single with a lot of own effort

That there is so little equity,

Somewhere you are calculating wrong: if you are allowed to renovate the house, it belongs to you (or a share of an inheritance, at least that is also worth something, so it’s not just the contents of the savings sock that count). The rent for externally used rooms can also flow into the repayment and so on, so to me it seems some points have not been considered yet. A factually incorrect calculation is still wrong even if it is otherwise mathematically correct. Do the calculation again, with all the factors that belong in it.

What is the deeper motivation behind owning a home?

You are in your mid-20s, have studied, so you are a career beginner. How likely is it that a lucrative job will be waiting somewhere in the country in the next few years? What are the career plans? Often, a house is quite a burden, especially for academics. The same broadly applies to family planning. Your future wife then may/must move into your "old" house because you can’t sell it and still have many years of installments open?

With family, career, and home ownership, at least one of the first two points should be settled before making deeper considerations. Of course, this excludes situations where an external circumstance forces you otherwise (inheritance, relatives in need of care, ...).

... If I enter as an example 130,000€ loan, 20 years fixed interest at 2.5% interest and 3% repayment in a usual financing calculator, I come to 595€ monthly repayment and 29,000€ residual debt.

Interim question at this point: Does the residual debt have to be paid off at once or is it also repaid month by month?

With the same values but 25 years fixed interest, I would be finished without residual debt after 24 years.



Thanks in advance,
Best regards
Ande

Hmm, with these loan calculators one easily forgets that it is only an approximation if the residual* may be correct. Otherwise, the bank will not give you 25 years with 130,000 or similar.

The *residual would be:
- sufficient income that you can still pay the rate alongside living expenses.
- security for the bank. This would be a high income or 2 borrowers or a lot of equity or an asset, which gains value properly through conversion and renovation. Is this the case with a DIY project of a, I guess, layman?
With the house values there could be problems with the appraisal.

I am also missing a sum that would be invested in renovation.

With a lot of equity costs double are coming to you, since you have to do the renovation alongside your job.
From the numbers mentioned I don’t see that the houses are energetically renovated, which might also not be a success-oriented approach for a bank.

Otherwise I do not advise anyone in their twenties to buy their own house that would strongly restrict them in finding a partner or job.

Regarding your interim question: residual debts can be paid off in one go or you usually have to take out a more expensive consumer loan.

Did you drop out of your studies?

170k with 1,700 net I find ambitious

170k with 1,700 net I find ambitious

I think that won't work. The bank probably calculates a flat rate of 800€ living expenses for the first person and 200€ for the car. Even if you actually spend less, the bank doesn't care. On top of the installment, there are additional costs of 400€, which you can no longer afford. And the topic of EL is overrated anyway. What you would save are the labor costs for some trades. Besides, your employer also has to accept that you're constantly distracted and not giving 100%. Especially now when you should be pushing hard, you want to take a break. I don't think that's a good idea.