Financing with building savings loan + KfW + subordinated loan

Additionally:

The home loan continues at 2.4% after 20% years. Years 1-20 include repayment with 1.2% as repayment substitute. Just checked again

Hey

can you still tell me the postal code where the property is being built?

and I would reconsider the entire situation again. Because it looks like there is already ownership (the apartment!)
which is positive if it is now worth more than at the time of purchase, and the loan amount has decreased.

what happens with it??? if you finish the construction in 1 year, will the apartment be sold? rented out?
is the apartment still so heavily encumbered that compensation of 25,000 EUR would have to be paid for another 4 years???
at 3.5% interest (about the interest rate from 6 years ago!) for 25,000 EUR compensation the remaining debt must currently be around 200,000 EUR?

if you know exactly what will happen with it, you can either:
- consider it as rental income (higher income) on the other hand you have to continue servicing the existing loan
- do you want to be "landlords"?
- or sell!
in case of sale, you can include the "additional proceeds" as bridge financing, so you probably don't need 531,000 EUR as financing but less.
If I have some key data here (such as living space, year built, address (neighboring street is also fine! and town) possibly how many apartments are in the building, and if there is a parking space) then I can give a quick orientation value of what you could easily get for it!

and one more remark regarding the
374,000 EUR at 1.35% for 20 years that are backed by a home savings contract:
over the 20 years you will pay more than 100,000 EUR in interest here! for the repayment of 1.2% into the home savings contract there is probably 0.10% credit interest, after 20 years about 88,000 EUR will be saved. The credited interest, however, is not even enough to cover the closing costs
after 20 years you will still have a loan of nearly 290,000 EUR (is there still an agio? disagio? because that can still significantly increase the 2.40%!) or is the 2.40% already effective???

Hey

can you still tell me the postal code where the property is being built?

and I would reconsider the whole situation once again. Because it looks like there is already ownership (the apartment!)
which is positive if it is now worth more than when purchased, and the loan amount has decreased.

what happens with that??? if you finish the construction in 1 year, will the apartment be sold? rented out?
is the apartment still so heavily burdened that you would have to pay 25,000 EUR in compensation for another 4 years???
at 3.5% interest (about the interest rate from 6 years ago!) for 25,000 EUR compensation the remaining debt would currently have to be at around 200,000 EUR?

if you know exactly what will happen with it, you can either:
- consider it as rental income (higher income) on the other hand you have to continue servicing the existing loan
- do you want to be "landlords"?
- or sell!
when selling, the "additional proceeds" can be included as bridge financing, so you probably won't need 531,000 EUR as financing but less.
If I have a few key data here (like living area, year built, address (neighboring street can also be given! and city) possibly how many apartments are in the building, and if parking space exists) then I can give a rough orientation value of what you could easily get for it!

and another note about the
374,000 EUR at 1.35% for 20 years which are secured by a home savings contract:
in those 20 years you will pay over 100,000 EUR in interest! for the repayment of 1.2% into the home savings plan there is probably 0.10% credit interest, where after 20 years about 88,000 EUR are saved. But the credit interest is not even enough to cover the closing costs
after 20 years you still have a loan of just under 290,000 EUR (is there still an agio? disagio? because that can still significantly increase the 2.40%) or is the 2.40% already effective???

Hi,

the building society with the fox is not far from us.

I actually wanted to sell the apartment, the prepayment penalty changed my mind. Renting is now the current plan. At the time of purchase it was expensive, now it is even more expensive, the value has risen absurdly. Currently it would bring in 100,000€ more on sale than we paid 6 years ago. If I subtract the 25K, there remains about 75K profit. Remaining debt in 4 years is about 90K€.

I actually don't want to play the landlord, but in fact due to the renovation and other benefits like a good location, 850€ rent can be asked, for which it should then also be rented.

My acquaintance threw the home savings contract at me like that, since then I have also doubted my probably not so healthy common sense. I noticed the closing fee very frustratingly, but only afterwards. I probably subconsciously blocked it out at first.

The 2.4% after 20 years are effective (as far as I can understand).

I say: get rid of the apartment! And please have it checked whether there really is such a high prepayment penalty. With the sale and EL, you actually have good equity according to the current situation. Actually, I’m not a fan of it, but it would probably make sense here to break down your financial situation. Only small bits of information keep coming up. Just like with your situation. A forum member wants to help. You remain vague with "near Schwäbisch Hall." That could be anything or nothing. I know it’s strange to disclose information on the internet. But only this way can you really get help here regarding financing.

I actually wanted to sell the apartment, but the prepayment penalty changed my mind. Renting it out is now the current plan. It was expensive when purchased, now it’s even more expensive; the value has risen absurdly. Currently, it would bring in €100,000 more if sold than what we paid 6 years ago. If I deduct the €25K, about €75K profit remains. The outstanding loan in 4 years is about €90K.

The calculation somehow doesn’t add up, because you should have also paid down for 10 years, so you should achieve the €100,000 + repayments - €25,000 as profit. Would you like to provide concrete figures? (Purchase price, outstanding loan today, current value.) A cold rent without m² numbers or other details is also vague and has no meaningful significance. Something different to ask the group: Currently, you would sell the apartment empty, in 4 years with tenants inside. Does that change anything about the purchase price? Potential buyers would first have to register personal use, unless the apartment should remain rented.

The prepayment penalty can never be 25,000 with 4 years and the debts, and it will also take a year before you move into the new house. Why not take out an additional loan on the condominium, which should not be a problem with a value of 350,000 (calculated from the rent). Then you can also make a short fixed interest period, since the risk of the interest rate increase is shared by the tax office. Or dissolve the existing home savings contracts, depending on the conditions, to waive the subordinated loan. Then you have the risk in 10 years of repaying the KfW loans.