High equity, low income: to build or not?

: We had also thought about a semi-detached house. In the new development area we are interested in, several semi-detached and terraced houses are to be built and sold; we are also considering this option.

However, a single-family house without immediate neighbors and with its own large plot of land remains a dream of ours. As a child, I always spent the summer with my grandparents, who had a house in the countryside, and I still fondly remember that wonderful time when I could play in the garden with my friends. I am also fully aware of the risks involved in building a house, but if everyone were deterred by them, no one would build anymore.

Hello, What exactly does _in begehrter Wohnlage_ mean in a suburb? And what does _nach unseren Vorstellungen_ mean? And how do you infer from EUR 200k (single-family house) to EUR 400k - after all, a difference of 100% - all in? Or are the costs of the plot, like additional construction costs, included in this surcharge?

Hello Bauexperte,

our suburb borders, separated by the green belt, the southern part of Cologne, which is one of the most expensive residential areas in the city. We live in a new development area, and just around the corner is an expensive villa district, hence the prices.

The house must/should/can cost EUR 200k (acquaintances built a solid house for this price here in our town all in). The remaining EUR 200k are plot + additional costs, as you already mentioned.

Regards

our suburb borders the southern part of Cologne, separated by the green belt, which is considered one of the most expensive residential areas of the city. We live in a new development area, right around the corner is an expensive villa district, hence the prices.

Honestly, I haven’t been able to comprehend that yet; I find that villa district almost as awful as the one in Widdersdorf mentioned above. Even despite the Rhine location, I can’t see it as nice.

The house must/should/can cost 200 TEur (acquaintances have built massively all-in for this price here in our town).

That depends on "when" they built "what" with "which" equipment; you can’t evaluate that so generally.

These days, I would say that for that you can buy a small single-family house of about 120 sqm or a semi-detached house of comparable size. However, without painting work, floor coverings, and all the added extras that come with it.

Rhine greetings

Yes, I will handle everything alone, but I don't really have a big problem with that. We had already inquired about a loan once and the advisor said that my wife should also be included in the contract, for whatever reason.

but why should she be included in the contract and submit to joint liability when she is not even listed in the land register? she has absolutely no benefits and would basically just be a guarantor for nothing. she would have to pay for something where she would never even be remotely an owner.

but why should she be included in the contract and submit to joint and several liability when she is not listed in the land register?! she has absolutely no advantages and would basically only be a guarantor for nothing. she would have to pay for something where she would never even remotely be an owner.

The reason why the bank wants to include the wife is simple: even if she currently has nothing and does not contribute any income. In the event of bankruptcy, a judgment would be obtained, which, to my knowledge, is valid for 30 years. Much can change during this time. The wife works and earns her own money / she inherits / she wins the lottery / etc. If the wife is not included in the contract, she could never be held liable.

The reason why the bank wants to include the wife is simple: Even if she currently has nothing and does not contribute any income. In the event of a bankruptcy, if a judgment is obtained, it is valid, to my knowledge, for 30 years. During this time, a lot can change. The wife works and earns her own money / she inherits / she wins the lottery / etc. If the woman is not included in the contract, she could never be held liable.

I can understand that from the bank's perspective. For the woman, it's harakiri for nothing. In case of damage, she is supposed to pay for the house for him, even though she can never become the owner (because "he" is registered in the land register). If he were to die and she wants to inherit the house, she automatically takes over the debts anyway. Again: she has no advantages by being included in the financing, only real huge disadvantages that could destroy her entire life. It is possible to somehow get out of the contract, but that is extremely difficult. In case of divorce and so on, the partner can also cause a lot of trouble. Even if she might eventually have some rights, she would have to enforce them through lengthy legal action. And all just for a stupid signature today so that the bank is happy. There are plenty of people who finance entire houses alone. With a financing of €100,000 on a €400,000 property, the bank can hardly insist on a second person if only one is also registered in the land register. That has to be possible too...