Is financing possible?

hi,
that is not a problem. you can manage that.
Once the big loan is gone (the thing with the neg.[Schufa Eintrag] is nonsense) your situation looks good. The property is a great collateral and capital is also available. With a 150,000 EUR loan and a 30-year term, you have a maximum monthly payment of 750 EUR (with 1% repayment).
750 + 180 = 930 loan installments with over 3,000 net income.
Any bank will go along with that!
Regards
Mash

With a 150,000 EUR loan and a 30-year term, you have a maximum monthly payment of 750 EUR (with 1% repayment). Mash

Yeah, and you still have 65,000 EUR outstanding debt. 1% repayment means 40 years. But it matches with a 7xx payment and 30 years, at about 1.7% repayment. However, only with the current interest rates!

Hello Schneemann86,

Two years ago, I was in a similar situation as you, looking for a property.
One thing upfront: You are approaching this correctly by first defining the financial framework and only then planning a house! Please don’t forget this during the further planning and especially during the construction phase.

Let’s summarize the situation for the end of 2012:

Equity:
Plot: €34,000
Additional equity: €40,000
Total equity: €74,000

With your presented income and cost calculation for the house, the financing – especially in the current low-interest phase – is manageable.
What worries me besides the car loan is the rough estimate for the house. I also paid significantly more for our house than the "catalog prices + fees" initially suggested.
Budget well and generously several tens of thousands of euros for "special requests," gardening work, garage, paving work, additional equipment requests.
I actually wanted to slightly "overfinance," but the calculation ended up exactly +/- 0...

So, let’s do the planning:
Monthly net income: €2,200
Realistically available for financing: €900 (car + living costs for 2 persons already deducted)
With €900 per month you could service a loan of approximately €240,000 (planned with 3.5% interest and 1% repayment)

In my eyes, however, that is a bit optimistic!
Better plan a little more conservatively. If you suddenly have to feed 3 people, the house of cards could possibly be on shaky legs.

In my view, financing around €180,000 under your conditions is not a particular problem!
The last catch still remains: interest rate development. In recent months, rates have been historically low. Currently, nominal interest rates of roughly 3, low % are available at almost all banks. That probably won’t be the case in a few months => financing will become more expensive! It could well be that you will have to finance at 4,X% or even more!

At 4.5% interest, 1% repayment, and a financing sum of €180,000, you would already have to spend €825 monthly. At more than 5% interest, €180,000 financing is then no longer feasible. This means for you: hope that interest rates stay low or act proactively and secure low rates in time either by building earlier or other measures (e.g., forward loan)

Best regards

I think Lynx's planning is already very realistic, with that you should do quite well. Otherwise, it is always worthwhile to gather opinions from several sources. That’s why I am still active here in the forum: Kredit - Baufinanzierung - Kredite - Darlehen. There is also a separate section for Baufinanzierung. You should get help there almost as quickly as here!

Who says that interest rates will be that high in a few months? Currently, they are falling again after a slight peak. (By the way, the yield curve can be very well read in the chart of the Umlaufrendite / not the values, only the curve)

No one should let themselves get worked up about that.

What has changed in recent weeks and months, for example to the detriment of borrowers:
- Banks are reluctant to offer long fixed interest periods. (Of course, with such low returns for the bank)
- Supply and demand are becoming increasingly noticeable and thus distort the "classic" picture of "the more equity, the better" (currently not necessarily in every case)
- Some banks calculate with higher living costs than some time ago (I think that’s good, as it’s more realistic), which may reduce the financing budget and thus prolong the loan term.

However, in favor of (at least continued low interest rates) goes:
- The ECB has become offensively aggressive
- The collateral required for loanable money is continuously lowered and is currently doing so massively
- Our current political leadership will do nothing at least until the election, and after that probably nothing for some time as well (if it even has the possibility). At least it (still) does not want to, because a consuming citizen is a good citizen (see gasoline, tobacco, alcohol – with so much good they have already done for the citizen there, why should it be different with interest rates?)
- The low-interest policy is announced to continue. Incidentally, now linked to inflation, which according to the latest findings the ECB absolutely has under control.

So nothing will be done for a while to increase interest rates. The southern countries are doing too poorly for that (for far too long already). And inflating a balloon only at the back while leaving the front empty just doesn’t work.

But back to the topic of the approach. It was said, that is exactly right how you are doing it. Well, first buy the land, then have to build in 3 years and then consider whether that’s even feasible, I’ll say nothing to that :)

If it stays with this financing amount, that works too. But I suspect (since the amount really sounds small) there’s more demand. Whether that’s still such a good idea remains open.

Presenting a plot of land as collateral at the bank is good and great, but it’s not the plot itself that counts, but its value.

On the topic of equity and lending value, I recently wrote a few lines on a different topic; if interested, you can look it up :)