Is the financing plan realistic?

2016-01-26 21:53:20

And where am I going around in circles now? Your example is nice, but there are other constellations as well.

What about the one who wants to borrow 400,000, has 30,000 equity, but wants 30,000 as a buffer (which apparently is already little here in the forum)? Going into the calculation with zero equity is rather bad – so I set the acquisition costs higher and hope that I don’t exceed the lending limits with that. Depending on the region & creditworthiness, it might then work.

Well, the 30k don’t count as equity for the bank anyway given that volume.

2016-01-26 21:56:36

What about the one who wants to borrow 400,000, has 30,000 equity, but wants 30,000 as a buffer (which apparently is already considered little here in the forum)? Going into the calculation with zero equity is rather bad - so I increase the development costs and hope not to exceed the lending limits with that. Depending on the area & creditworthiness, that can then work.

That’s exactly what he meant. Either you declare the 30k as equity or not. If yes, the loan requirement increases by 30k for the buffer; if not, the loan requirement increases due to missing equity.
There are only a few here who have 300k equity, but even for them it’s a “left pocket - right pocket” game.

2016-01-26 21:56:46

Sure, that is the left/right pocket, but no equity at all is worse than little.

:

But only you think that.

2016-01-26 22:21:02

Sure, that is left/right pocket, but having no equity at all is worse than having little.

:
But only you think so

Well, with the additional costs you have to pay, you really can’t effectively use the 30k to increase value. It might turn a 130% financing into a 123% financing, but then it matters less about the 30k equity and more about whether the long-term financing is secured.

2016-01-27 07:15:05

What about the one who wants to borrow 400,000, has 30,000 equity, but wants 30,000 as a buffer

He is presumably missing significantly more than 30,000 euros in own funds to reach a financeable lending limit (assuming the total costs amount to 430,000 euros without a buffer).

2016-01-27 07:29:17

Presumably - but you are wrong. Such constellations/relationships are still sufficiently financed. It always depends on what I have written, where you build, what your creditworthiness is, etc.

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Is the financing plan realistic?

Saruss

Uwe82

Sebastian79

Saruss

Bieber0815

Sebastian79