Got a house offer, seems too expensive for us!

  • Erstellt am 2012-03-19 12:46:04

Brisch

2012-03-19 16:41:14
  • #1


Still, thanks for your effort (of course, thanks also to the rest of the "team" here)



Hmm ok ...



Here it is (thank God "only") 3.5%



That’s exactly the calculation I started from (I had already found it like this in another thread).



OK … well then let’s see … maybe we can still raise €20K somewhere (for a cheerful buffer) …
 

Brisch

2012-03-20 01:14:51
  • #2
Little update ...

After several hours of deliberation in the home family council (the missus and myself), we have now rather come to the conclusion that increasing the total budget to 470K€ is out of the question.

Sure, the bank would cooperate and the income would be sufficient, but considering the current equity situation (barely 15% of the total amount) and the schedule proposed by the "Bauträger" (house manufacturer fits better) (delivery date Sep/Oct 2012 versus land purchase in 04/2012), the whole thing just seems too "shaky" to us.

From September on, we would start paying commitment interest on the large annuity loan and additionally already have to pay interest on the drawn amounts, and since there is so little "buffer" upwards, we simply have the "fear" that this will break our neck.

We will probably, provided the bank and the land agent (a bigger problem, since he is connected with the house manufacturer and probably has even more interested parties on the hook) cooperate, first buy the land, because to be honest, we don’t want to "mess that up".

Then we will dutifully pay off the financing alongside the current rent (quite manageable) (if we use all our equity, the financing requirement remains 130K€) and save new equity through the building savings contract maturing in 06/2013 and the installments from the land sale (10K€/year).

This also has the advantage that we have more time for comparing offers from different home builders and properly checking them, and in addition, the equity grows.

Thank you for your "wake-up call" and the nice advice, I will get in touch again when there is news.
 

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