Home Construction Financing Experiences

Hello,

I am 23 and have a problem.
A week ago my grandma passed away, who left me a house.
The house is in a very nice location in the countryside and I don’t want to lose it under any circumstances because it has a very good location and I have a lot of memories there since I more or less grew up there.
So the house has a lot of damages and a lot needs to be done.
It has no bathroom, needs new windows, mold, new doors, new roof, walls need to be broken, basement is wet, not insulated, and much more.
I wanted to have the house torn down now and build a new one there.
I called the building authority today and asked if I can do it like that, demolish and build new.
They said because it is outside the town it will be difficult.
I don’t want a bigger one, I think it will be about the same size. Then you ask yourself what the problem is, I am doing something for the economy and for the good of nature because it will be more energy-efficient then...
So I also wanted to take out a loan of about €255,000.
It breaks down as follows:
€150,000 for the new house
€65,000 the existing debts from the house (inheritance)
€12,000 rent (the time living in my current apartment until the new one is finished)
€10,000 demolition
€5,000 garden, driveway, container, moving, possibly furniture
€10,000 safety kitchen etc., land register, possibly other costs and the funeral
That adds up to about €255,000.
Now the question is if anyone has had experience with such a high loan?
I am permanently employed and earn about €1,500 net monthly.
My brother wants to get involved but he still has to study for 2 years before he earns money.
I would then have to take the loan for 40-45 years for it to work...
I have no parents anymore and I don’t know anyone who could help me with tips in this regard.
I ask everyone who has read my text and knows a bit to share their opinion, tips on what I should do now would be nice.
My plan would be as follows:
Clarify with the building authority if it is allowed,
Get the loan,
Demolish the house,
Build the house.
I don’t know much about the authorities so help there would also be very welcome.
Or where else I should share this text, e.g. another forum.
So thanks in advance to everyone who gives me tips.

Hello Kai87,

first of all, my condolences on the death of your grandmother.

With your income, you cannot finance this amount, especially since there will be significantly more costs for you than you think. The demolition can, for example, also easily cost €30,000, etc. Our Mr. Thiemann can surely tell you more about construction financing.

I would first check whether it would be better to renounce the inheritance; if you add up the costs for the demolition, the debts on the house, and the funeral, the value of the property should be significantly above that amount for the inheritance to be accepted.

Hi, sorry first of all for your loss. Ever thought about doing the demolition yourself? Surely you have a few people in your circle of acquaintances who can help with that. Depending on where it is, why not ask the fire department if they want to do a [fire protection exercise] - basically a warm demolition ;)