Massive house costs KFW 70 - Prefabricated house

Yes and no, later on I will pay down the loan with special repayments, for example my inheritance or rental income from the granny flat, and I also have a higher salary and inflation with which I can adjust the repayments. Only the beginning is difficult... that's how I see it

Just Google "full financing." What you are planning is equivalent to roulette.

*look desperate

Hello,

*looking desperate

As I already said, it makes absolutely no sense to "blow you a comb"....

Why – if it absolutely has to be a house now – don’t you get the idea to fill in the slope? And why would you then have to compensate your mother now.... somehow I’m at a loss: inheritance remains inheritance, or do the clocks tick differently in BW?

I would most like to "take you by the hand," have a serious counseling conversation with you, and explain all the pros and cons based on the current state. Since BW is not exactly my area, again the urgent advice: find someone local who knows all about this; what you wrote about your financing isn’t great either and certainly not the right way for you: with this you won’t create wealth but a long-term dependency on the bank "of your" trust...

I seriously want to agree with my predecessors and urgently recommend you save for several more years if you absolutely do not want to plan smaller. I always call building "sweet poverty" – but it must not lead to you being trapped in changing dependencies for the rest of your life!

Kind regards

Hm, I'm afraid if you don't lower your demands significantly or find a much better-paid job, it’s not going to work. What you’re doing is trying to justify it to yourself. You’re already calculating in €100 increments to achieve something. That won’t work.

A reputable financial advisor (like mine in Karlsruhe) would have told you long ago that it’s not going to work. What happens if your basement doesn’t cost 35,000 but rather 60,000 (this price is much more realistic; you only get your price if you do the masonry yourself)? And I promise you, if you start building a house... it will be at least €20,000-30,000 more expensive than what’s stated on the house company’s offer. Because often many items are not included in the contract, unforeseeable costs come up... you have no chance with your plan. And if your bank gives you this loan, they’re already counting on the house. Get away from this bank... Also, a 30-year fixed interest rate is nonsense. You simply pay too much interest. We have 20 years and a financing model by which we can comfortably repay the €250,000 within 20 years.

You talk about special repayments and inflation. How do you want to make special repayments if you’re already maxed out at €1,500? Inheritance... Look at the contract, usually you’re only allowed 5% special repayments. You won’t get a KFW loan at 2.04%, not with your equity.

We got 3.4% at the bank for 20 years with an equity of €150,000. And we compared many banks. Everything you read on advertising sites on the internet is misleading. You only get good interest rates if you only have to finance 60% of the total costs. Because exactly these 60% are risk-free for a bank (they will definitely get the money back in a foreclosure). Everything above that is more expensive. By the way, if you have to go to another bank for additional financing, it will be very difficult or only expensive for you to get a loan, because this bank cannot get any security from you, since the first bank registered the land charge.

I have to say something about inflation: Unfortunately, it does not affect the debt sum... the bank is the last to make concessions. Your debts will not become less. Only your money, which you have to live on, will lose value. Gas prices, cost of living, etc. will take up more and more % of your income.

So honestly: Tear down the house on the property, sell the property, split it half and half with your brother, and buy yourselves a cheap plot further out if necessary. Forget the basement, and forget the gas prices. By the time you’ve paid €50,000 more for gas, we won’t be driving on gas anymore :) With 30 km more travel each way, you can easily fuel the extra demand for 15 years.

Oh, one more thing: even if you get the KFW loans, which are tied to conditions, you would have to pay them off within the next 10 years. They have a maximum term of 10 years. Anything remaining after that would have to be refinanced at a very high cost.

The loans are only there to make the first few years a bit easier. After that, they hit you full force.

We had to invest almost 15,000 into the house to get the loan. But since we wanted to carry out the measures anyway, it worked out well for us. Especially since we are allowed to pay off the loan in full at any time if needed.
After that, our monthly burden would only be just under €700 ... for that, you can barely get a 60 sqm apartment in Karlsruhe.

It is also important which industry you work in... it should be secure. At least, my advisor included that in the risk assessment as well.

Further, I might also do it this way, that we rent the granny flat to my parents for 75% (7 Eur x 75% = 5.25 Eur). Then we get 210 Eur every month and can deduct it from taxes. My parents rent it out furnished as a vacation apartment, including utilities = let's say 500 Eur. They would have a profit of 290 Eur minus incidental costs of about 90 Eur) 200 Eur monthly for 14 years and I would have paid out my parents with 35,000 Eur. Then we can deduct everything proportionally from taxes. My parents could then sublet the apartment? Could this possibly work better this way?

these 410€ that your parents then receive have to be taxed, so about ~240 remain... from that they then pay rent to you in the amount of 210€... leaving 30€ per month if the vacation apartment is constantly rented... I doubt that you can claim the interest on your side and your parents the rent for tax purposes....

if it's simply about paying out your parents, then just transfer 100€ per month and in 10 years when you have more then 200€... and then just keep doing that until your parents have enough....

this is also an amount that can be saved in an emergency if it gets tight...

and as already mentioned, the KfW loans only have a 10-year fixed interest period!

just say goodbye to this small, very expensive hillside plot... in my opinion that is the biggest price driver....