Is financing possible for us?

Hello everyone, we would like to build, but we don’t know if it’s even feasible, since we have already been to the Sparkasse and went home very disappointed.

It’s about a semi-detached house, 140 sqm, plot 317 sqm

Cost - turnkey: €230,770

To have everything really finished, we would be at €265,000

We currently have a condominium, which we would sell.
Equity - €70,000 (from the sale of the condo)

So we would have to finance €195,000

Our total income is €2,400, which is not much, I currently have a €400 job, but plan to work part-time again next year.

We are 2 adults and 2 children, I know that banks work with flat rates, so I’m not sure if it’s even feasible for us.
We have an appointment at PSD Bank tomorrow, but I’ve heard that living expenses for 4 people are around €1,500 there.

So I’m pessimistic, has anyone had similar experiences?
Is it even feasible, or will it remain a dream for us?

The monthly burden should not be too high either, we still want to live.
We were thinking of about €850, which bank would do that?

Hello Magda,

Your comparatively high equity capital should make financing possible for you.

I have just calculated this and come up with the following option:

80,000 EUR KfW-124, 3.90%/3.96% = 354.67 EUR monthly
115,000 EUR construction loan, 4.09%/4.30% = 506.96 EUR monthly
195,000 EUR total = 861.63 EUR

Best regards

M. Thiemann

Well, let's just say the equity isn't really tangible? Or do you have a buyer for 70K€ who would buy it immediately? Desired sales figures and reality are often quite different, which sometimes only get somewhat closer after a very long wait. I doubt whether a reputable bank would really lend you 200K€ at the moment, but good luck with that. But maybe it's better to live calmly in the condominium than to live with a stomach ache every day with such tight financing.

The calculation is done very quickly:

€200,000 financing amount, desired installment €850.
If you fix the interest rate for only 15 years, you have an interest rate of about 4.2 percent, as the currently cheapest offer. However, the installment is already about €870 and you would have to pay for 40 years, then it is paid off.
Normally, with such low equity, you have to fix the interest rate for 20 years, but then the interest rate is higher and thus not possible with an installment of €850.
Under these conditions, no one will lend you money. Anyone who claims otherwise is lying to you.

Hello Magda,

Your comparatively high equity should make the financing possible for you.

I just calculated it once and come to the following possibility:

80,000 EUR KfW-124, 3.90%/3.96% = 354.67 EUR monthly.
115,000 EUR construction loan, 4.09%/4.30% = 506.96 EUR monthly.
195,000 EUR total = 861.63 EUR

Please send me your email address via private message or email, then I will email you the complete calculation.

Best regards

M. Thiemann

Tell the poor woman how long she has to pay off in your constellation. And by the way, tell her the fixed interest period. And the maintenance costs, additional costs, etc. It comes down to her only paying interest and commissions, after a few years not being able to bear the burden anymore, and then the house is sold by the bank at a bargain price. She then has to "pay off" the rest of the financing for "life." Bravo, a very serious, trustworthy "consultation."

Hello,

I consider it exaggerated to interpret these notes here in the forum as "advice." This can only be a preliminary exchange of ideas.

The topic of "real estate financing" is complicated enough that it cannot be conclusively addressed via an internet forum. Further discussions are necessary once the rough financing framework is established.

I have already communicated the length of the total term and the fixed interest period to Magda by e-mail along with the complete financing calculation. She already has the offer with all the detailed figures.

Of course, the financing is tight, and it only makes sense to consider realization with the existing equity capital.

The question was: whether a bank would support this financing.

Kind regards

M. Thiemann