Land paid - Building with an additional loan?

Hello everyone,

I plan to build a house in 2015. Here is what I have in mind:

The land was bought and paid for this year.

I can still save 300,000 euros by 2015, I think I will get another 100,000 euros from my parents, so I would have 400,000 euros. I THINK the house will cost about 650,000 euros, so I would need to borrow (preferably a bit more) 300,000 euros. I earn quite well, about 180-200k per year. What is the expected monthly burden? Can you also pay back more than the monthly rate, basically as a "one-time payment"? I would just like to be debt-free quickly!!

Thank you very much,

Armin

Hmm, a person who earns 180 - 200 thousand a year should be trusted to be able to make such a decision for themselves.

At that income, the question should rather be whether one has the desire to have paid off 300,000€ after 2 or 30 years.

I would like to have such problems too :confused:

I am not very familiar with loans, I also haven't spoken to a bank yet! I just thought that here someone could tell me if it is possible to do it this way, basically a loan that runs, for example, only 5 years, and where you can pay a larger amount once a year.

5 years term usually works. You just have to negotiate with the banks. We also negotiated a higher special repayment right. Normally they give you 5%.

Or you make sure you get a loan that you can repay at any time. That will probably be more expensive at first, but maybe it pays off for you.

No, a loan that can be repaid at any time is usually a loan without a fixed interest rate. With this, you can repay at any time, usually at the end of a quarter. And these loans are even cheaper than a 5- or 10-year fixed interest period. From my professional experience, I know many people who earn very well and have little or no knowledge about loans or money, etc.... Usually freelancers or self-employed.