It doesn't work without equity - experience!

Honestly, I expected more from the thread, as it could possibly affect me in the future. With all the off-topic whining and "hate" about who builds what kind of house, you almost lose the desire to read!

But at least it has become clear that equity capital never hurts. However, without (much) equity capital, it is also generally possibly to build a small house.

I am a career starter and in half a year a civil servant for life at the age of 23 and would like to realize my dream of owning a house quite quickly (possibly even as early as 2017) – I have not had much time or opportunity to save so far.

Regards
BeckIsBack

Honestly, I had hoped for more from this thread since it might affect me in the future. Because of all the off-topic whining and "hating" about who is building which house, one almost loses the desire to read!

But at least it has become clear that equity capital never hurts. However, it is basically possibly under certain circumstances to build a small house without (much) equity capital.

I am a career starter and will be a civil servant for life in half a year at the age of 23 and would like to quickly (possibly even in 2017) fulfill my dream of owning a house - I haven't had much time or opportunity to save so far.

Regards
BeckIsBack

Hello,

you can't really say that in general. Many participants come from the banking environment and have seen many configurations and therefore proceed with low risk.

In your case, it's true that you don't have 50-100k equity capital. But would you also want to finance 400-500k like some people without equity capital? Probably not.

Hello,

you can't really say that in general. Many participants come from the banking environment and have seen some configurations and therefore proceed with low risk.

In your case, it is true that you don't have 50-100k equity. But would you then want to finance 400-500k like some without equity? Probably not

If the thread is supposed to be about financing over TEUR 500 without equity, I must have overlooked that *shame on me*

But as you rightly pointed out, I probably wouldn't want to finance 500,000 EUR.

Regards

In general, you really can't say that in a blanket way. Equity "only" defines the condition.

If I have no equity and the bank finances me, of course with rather poor conditions, but I can easily manage the installment through increased income, then that is legitimate.

One could say that with increased income there should also be equity, but maybe life circumstances have changed that one hadn't thought of before.

So one can basically say that it would "not only be bad" if one decides to build a house at a young age (as in my case with a fairly secure job), even if the equity is not huge right now.

- You just explained well to me that the equity defines the conditions.

In general, you really can't make a blanket statement about this. Equity only defines the terms.

If I have no equity and the bank finances me, of course with rather poor conditions, but I can easily manage the installments due to increased income, then that's legitimate.

One might say that with increased income there should also be equity, but maybe life circumstances have changed that one hadn't thought of before.

Sorry, I have to disagree with that. That would mean that one has a right to a loan/credit and that the property as collateral is sufficient. Here, we always talk about real (property) and personal liability (worst case wage garnishment).

Banks will never throw loans around but will set up an assessment for you if you want to take out a 100% loan. It has to fit. If you have no equity and still have 3 cell phones, a car on credit, and earn 5,000 net per month, then something can't be right.