House sold for resizing

Hello,

no matter how I calculate it, I somehow can’t get anywhere. I have now sold my house and want to downsize with a used small house.
Equity after paying off all debts = 65,000 euros. But I don’t want to invest all of it; I want to put aside 20,000 for emergencies, so 45,000 remain as equity.

Two used houses that interest me as examples
House A - Built 1975
80,000€
+4,760 broker fee
+4,000 property transfer tax
+1,600 notary, land registry, etc.

--> so 10,360 incidental costs, a total of 90,360.
If I now subtract the incidental costs from my 45,000€ equity, 34,640€ remain.
Since everything in the house has to be redone (bathroom, floors, front door, windows, etc.), it will be tight with the equity if I should finance 100%.

House B - Built 1971
135,000€
+8,100 broker fee
+6,750 tax
+2,400 notary, land registry, etc.

so 17,250 incidental costs, a total of 152,250
In the house, not much needs to be done, garden about 5,000, bathroom 15,000, painting work.
Equity 45,000 less incidental costs -> 27,750 remain for renovation if I finance the purchase 100%.

I am in public service, permanently employed, net salary currently 2,000,-

How is it possible not to fully finance a used house? There almost always has to be something done, doesn’t it?
If I now take a loan with an 80,000 limit at 60% = 48,000 euros credit, no one could buy and renovate a house with that, right?

Where is my thinking error?

That you start from your equity and your situation ...

What exactly do you mean by that now? That 45,000 equity is not enough to buy a used house?

With more equity, you reduce the mortgage lending value. It's that simple. The prerequisite for you: your equity must be sufficient for all renovations.

The mistake you seem to be making is: how the hell do others manage that? :)

Hm, what does it look like, you surely get money from the bank for the renovation too? Is that my mistake, that I didn’t include that? Just got pointed out :)

For renovations, you do get money from the bank, but it only increases the loan-to-value ratio marginally. Whether freshly painted or new tiles, no one but yourself cares.

If something increases the LTV, then it’s renovations, completely new electrical/heating systems, and such things. And even those do not reflect in the LTV the amount you hope for.