AndreasRK
2014-10-26 16:23:48
- #1
Hello dear forum!
I know that it is actually taboo to finance house construction without equity, but I now dare to ask the forum whether our building project is feasible. We are a family of four, with two children - 16 years and 6 years old. Both parents have permanent employment contracts, and the monthly income is about 3800 euros. We currently live in a 3-room rented apartment, which is simply too small for us now, in a village 3 km from the city where we would like to move. Actually, we were looking for a 4-room apartment to rent until we came across an offer. A semi-detached house with about 100 sqm, with a small plot (380 sqm) and a prefab garage will cost around 190 thousand euros (plot - 36 thousand euros, the house 125 thousand euros, additional building costs - 20 thousand euros, painting, floor, and outdoor facilities as own work), which absolutely meets our wishes. As already mentioned, we have no real equity, but 7-10 thousand euros in reserves. The advisor's offer consists of financing from the KfW home ownership program and a bank loan, which burdens us with 650 euros over the next ten years.
I am of the opinion that we still need to save, but my wife and the advisor, of course, think that we should do it now, as the interest rate is at its lowest level. We currently pay 600 euros rent warm, and 850 euros per month (financing and incidental costs), from my wife's point of view, we can manage without really tightening our belts. I am now 38 years old and my wife 35, our goal would be to pay off the semi-detached house completely by retirement. Is this possible?
I thank you in advance for many honest opinions.
Sorry for my spelling, German is not my native language.)
Best regards, Andreas
I know that it is actually taboo to finance house construction without equity, but I now dare to ask the forum whether our building project is feasible. We are a family of four, with two children - 16 years and 6 years old. Both parents have permanent employment contracts, and the monthly income is about 3800 euros. We currently live in a 3-room rented apartment, which is simply too small for us now, in a village 3 km from the city where we would like to move. Actually, we were looking for a 4-room apartment to rent until we came across an offer. A semi-detached house with about 100 sqm, with a small plot (380 sqm) and a prefab garage will cost around 190 thousand euros (plot - 36 thousand euros, the house 125 thousand euros, additional building costs - 20 thousand euros, painting, floor, and outdoor facilities as own work), which absolutely meets our wishes. As already mentioned, we have no real equity, but 7-10 thousand euros in reserves. The advisor's offer consists of financing from the KfW home ownership program and a bank loan, which burdens us with 650 euros over the next ten years.
I am of the opinion that we still need to save, but my wife and the advisor, of course, think that we should do it now, as the interest rate is at its lowest level. We currently pay 600 euros rent warm, and 850 euros per month (financing and incidental costs), from my wife's point of view, we can manage without really tightening our belts. I am now 38 years old and my wife 35, our goal would be to pay off the semi-detached house completely by retirement. Is this possible?
I thank you in advance for many honest opinions.
Sorry for my spelling, German is not my native language.)
Best regards, Andreas