Hampek
2012-11-05 14:04:13
- #1
Hello everyone,
since this is my first post, I would like to warmly welcome everyone here in the forum.
Now to my/our concern... We definitely want to have our own four walls. The current interest rates are very tempting, but unfortunately, we have not yet been able to build up any equity. The reasons for this are varied - moving to a larger rental apartment 3 years ago, associated complete furnishing, a new car, and not exactly modest lifestyle. But now is not the time to complain, rather we want to look positively into the future.
About our situation: Currently, we are 2 adults (35/36) + 2 children (14/2). It is quite possible that there will be another baby next year. I am self-employed and my wife has been an employee since 2006. Together we have at least €4000 net monthly (without child benefit) – trend is rising. We could easily save at least €1000 per month – I have already opened a savings account where I transferred the first amount in October 2012. In addition, every year there is also a distribution of profits, for 2011 it is still about €23,000 gross – 2012 should even be a bit more. So in my opinion there should be saving potential.
Now to our consideration/our plan: Since I personally believe that interest rates have already reached their lowest point – I expect an increase in interest rates in the coming years. For this reason, we are thinking about a forward loan for a property (a townhouse – keeping it simple) up to a maximum of €300,000. We would like to secure about €200,000 now through a forward loan (disbursement in 36 months – fixed interest period at least 15 years), then borrow €50,000 from KfW and want to provide at least €40,000 equity. I personally target a property that is around €260,000 + additional costs (tax, notary, commission, etc.).
This already raises many questions. I will start with these:
1. How do we reconcile the equity with the bank? Do we have to show the equity now or is the bank satisfied with the promise that we will have €40,000 in 36 months? What would happen if we save more or less?
2. What happens if we cancel the home purchase plan? Would we have to pay compensation to the bank and if so – how much?
3. What do you generally think of a forward loan? Does our plan make sense?
Our house bank is the Commerzbank (originally Dresdner Bank). Business account is with Deutsche Bank. I think both banks could be options since they have an overview of my/our finances and as a self-employed person you are not warmly welcomed at all credit institutions. ;)
Thanks and best regards Robert
P.S. Maybe someone has useful links or documents where one could read more information about this form of credit?
since this is my first post, I would like to warmly welcome everyone here in the forum.
Now to my/our concern... We definitely want to have our own four walls. The current interest rates are very tempting, but unfortunately, we have not yet been able to build up any equity. The reasons for this are varied - moving to a larger rental apartment 3 years ago, associated complete furnishing, a new car, and not exactly modest lifestyle. But now is not the time to complain, rather we want to look positively into the future.
About our situation: Currently, we are 2 adults (35/36) + 2 children (14/2). It is quite possible that there will be another baby next year. I am self-employed and my wife has been an employee since 2006. Together we have at least €4000 net monthly (without child benefit) – trend is rising. We could easily save at least €1000 per month – I have already opened a savings account where I transferred the first amount in October 2012. In addition, every year there is also a distribution of profits, for 2011 it is still about €23,000 gross – 2012 should even be a bit more. So in my opinion there should be saving potential.
Now to our consideration/our plan: Since I personally believe that interest rates have already reached their lowest point – I expect an increase in interest rates in the coming years. For this reason, we are thinking about a forward loan for a property (a townhouse – keeping it simple) up to a maximum of €300,000. We would like to secure about €200,000 now through a forward loan (disbursement in 36 months – fixed interest period at least 15 years), then borrow €50,000 from KfW and want to provide at least €40,000 equity. I personally target a property that is around €260,000 + additional costs (tax, notary, commission, etc.).
This already raises many questions. I will start with these:
1. How do we reconcile the equity with the bank? Do we have to show the equity now or is the bank satisfied with the promise that we will have €40,000 in 36 months? What would happen if we save more or less?
2. What happens if we cancel the home purchase plan? Would we have to pay compensation to the bank and if so – how much?
3. What do you generally think of a forward loan? Does our plan make sense?
Our house bank is the Commerzbank (originally Dresdner Bank). Business account is with Deutsche Bank. I think both banks could be options since they have an overview of my/our finances and as a self-employed person you are not warmly welcomed at all credit institutions. ;)
Thanks and best regards Robert
P.S. Maybe someone has useful links or documents where one could read more information about this form of credit?