House construction financing: possible or too tight?

2021-09-27 10:28:44

Just build 160 sqm. That's more than enough for 4 people. We are building 138 sqm (gehobener Standard) for 3 people and are completely satisfied with it. You will sleep more peacefully and still have more than enough space. Also remember that the children will move out eventually, then you'll have 200 sqm to deal with and 1-2 "Soda-Zimmer" which won't tidy themselves up.

2021-10-03 13:23:15

So, what some people write here is really strange, if the rate covers up to 35% of your net income, financing is completely okay. So your calculation checks out. I can only speak for the FFM area, 1600 rent is standard here and why shouldn't you finance a home instead. Just wait for 1-2 rent increases and it will get tight. You can also assign your property to the bank, there are several options so that you don’t have to do temporary financing.

2021-10-03 14:20:45

1600 rent is standard here, and why shouldn't you finance a home instead for that amount.

Quite simple. Because 1600 € rent is not comparable to a 1600 € installment for the home. With a house, you always have additional and therefore higher expenses.

2021-10-03 14:41:13

Unfortunately, the most relevant point was not addressed (is the questioner even still active?

Possible rent: 1600 - 1800 euros

Income: 4800
Expenses: 3150

1650 remain.

However, living ancillary costs are still missing here, which will be higher than before. With 1800 you make a loss every month!
So that definitely doesn’t add up... child benefit or not...

Basically: for me, everything that I cannot manage mostly and significantly by my own strength is not relevant and beyond my budget. But maybe it’s also because I never had to think about something like a large inheritance in the family environment :D

Accordingly: here in the Düsseldorf area such arrangements are completely normal. Equity for financing comes from grandma. The financing is then serviced with as little repayment as possible. Until the parents’ inheritance can pay off the remaining debt.
These are no mansions or luxury condominiums. But clearly above one’s own budget. And it seems to work well for most people.

2021-10-03 14:44:54

Yes, that is correct, therefore you still have the 5% buffer (in this case 240 euros ancillary costs, of course you calculate a bit more, but setting aside 200 euros more should be no problem) with a new build, no exorbitant work should be required in the first 20 years.
A new build certainly also includes good thermal insulation etc.
Of course, there will always be people for whom this is too risky, but sometimes you just have to take a certain risk =).

If you calculate 108 x 4800 = 518,400 euros, which a bank would easily approve as a loan. (Of course, if there are no other loans running that would reduce the calculation) then quite a bit of equity capital is still missing, but maybe you will be able to sell the old property in parts.

2021-10-03 15:52:59

Yes, that is correct, that's why you still have the 5% buffer (in this case 240 euros for additional costs, of course you should calculate a bit more, but setting aside 200€ more will probably be easily manageable) with a new building, no exorbitant work should be necessary in the first 20 years. A new building certainly also includes good thermal insulation, etc. Of course, there will always be people for whom that is too risky, but sometimes you just have to take a certain risk=).

If you calculate 108 x 4800 = 518,400€, which a bank would easily approve as a loan. (If, of course, there are no other loans running that would reduce the calculation) then a lot of equity is still missing, but maybe you can manage that by selling the old property in parts.

Only 200 € left every month would be a deal-breaker for me. It's not uncommon for us to have some special expenses. Be it car repairs, birthdays, vacations. Not all expenses are certainly reflected in the smaller expenses.

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House construction financing: possible or too tight?

Tom1978

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moHouse

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Tom1978