Financing | Single-family house | Feasibility | 2nd rank

Small update:

- The condominium was valued by the bank at €270,000.
- No equity was accepted (i.e. more buffer for the renovation)
- Effective interest rate for 10 years 0.74%, including 1 year of interest-only and no commitment interest period
- 10% special repayment possible annually
- Installment approx. €1350 (approx. 30 years until full repayment)
- Notary appointment successful

Contrary to the assumption that the apartment does not bring an advantage, it greatly influenced the interest rate.

We will save about €200 monthly into a home savings contract to continue benefiting from the favorable interest rate after 10 years if necessary.

Due to the interest-only and no commitment interest period, we can renovate in peace and move in next year.

Thanks for all the ideas and objections, it’s rare to get so many competent responses in forums.

Best regards and stay healthy!

And how were the purchase incidental costs covered?

And how were the incidental purchase costs covered?

Were co-financed.

Oh dear, after buying the single-family house I completely forgot about this thread. So here’s a huge update:

Here are the key data again:
-Purchase price: €360,000
-Additional costs: €30,600 (no real estate agent)
-Planned modernization measures: approx. €70,000
-Planned total costs: €460,000

Income (Update)
-Salary 1 (permanent): €3200-3800 net -> €4800-5000 net
-Salary 2 (permanent): €1800 net -> €2500 net
-Child benefit (2 kids): €400 -> Surprise! 3rd child during the renovation -> €765
-Net cold rent from condominium: €645 -> Increased slightly once, no payment defaults or renovations necessary so far

Outstanding loans:
-Private loan (cars, student loans etc. consolidated): currently still €33,000 / €550 installment - > now paid off
- Condominium remaining loan: €130,000 / €600 installment -> remaining debt €100,000, we kept the condominium and can now sell it tax-free (value allegedly over 300k now)
- Additional loan on the condominium of €100,000 -> details in the text

Purchase / Renovation / Expansion of the house:
In one thread you were all right :-). We approached the matter very naively, so the first architect completely took us for a ride. So much so that the local building authority advised us to change architects. In addition, several craftsmen cheated us (either by delaying 3-6 months or with unexpected final bills). We always paid every invoice down to the last cent (karma) and then continued completely on our own.

Due to Corona and the Ukraine war, material prices (especially for wood) rose massively, so that in the middle of the renovation the planned budget ran out and we had to finance another €100,000 (loan on the condominium), and of course all monthly surplus flowed into the expansion. For this, there was a completely new roof, a heat pump, new underfloor heating, new windows, etc., so that we can now live in a 140 sqm city villa in the latest state for a total of €560,000 in loan debt. (Final valuation at the bank resulted in €650,000)

The measure took a total of 4 years (mainly because the craftsmen made us wait 3-6 months each, although start times were agreed).

We moved into the house mid-2024 and are finalizing the garden and so on little by little. It was sometimes absolutely awful to see how many dishonest people there are in construction, but we are happy every day to be able to live in a beautiful house in our dream area.

You were all right, it was a very tight situation and in general it would be advised against. In my case, I was willing to give everything (and unfortunately had to), to escape the city with my (now larger) family to be able to live in the surrounding area.

PS: The installment for the house naturally rose from €1300 to €1900 due to the additional financing, but at the same time our salary range also increased and we can now market the condominium calmly (possibly even without tenants at a higher price) and then repay the additional financing as well as a small part of the house loan directly.

If you can really get rid of the ETW for 300k, I would invest the money and let it work. The returns could definitely cover 1/3 of your installment.

Since there is still 100k outstanding debt and about 100k additional financing registered in the land register, I would have to pay off both if I sell the property.

I even think I will get more than 300k, as a small condominium in the same building was recently sold for 250,000€.

How would you invest the money to generate an income of 650€ per month?

If you really get rid of the condo for 300k, I would invest the money and let it work. The income can certainly cover 1/3 of your installment.