New construction with existing debt - feasibility question

  • Erstellt am 2020-05-06 17:34:45

Matthew03

2020-05-29 10:31:50
  • #1
...if one disregards the Schufa entries, OK.
 

Tassimat

2020-05-29 10:41:31
  • #2

No, because whoever can offer 0% financing has incorporated that into the purchase price. There is always a dealer who sells cheaper without credit.

The best examples are kitchens or cars. Everyone advertises 0% financing, but if you say you will pay directly, then there is an even bigger discount. Experienced 5% in the kitchen studio recently myself.
 

K1300S

2020-05-29 10:44:00
  • #3


It is relatively simple. Because



that's already 200,000, which makes 750,000. Additionally, the fact is that I do believe the 550,000 for a "bare" offer (house with a residential basement), but by the time the house is finished and "nice," an estimated additional 100,000 EUR will be added. (Feel free to browse through the forum here.) Now one can argue whether 850,000 EUR is already "on the way to 900,000," but the fact is: They are just as far away from 800,000.
 

Murmelstein

2020-05-29 10:56:52
  • #4

Oh, I thought you were talking about the pure house costs without the land.

I’m relatively sure that your 100,000€ will be added during the specification phase and then you have to start cutting costs.

The specification phase is only done by the construction company once you have signed a contract with them and can present a financing confirmation? I’m relatively paranoid and of course want to know everything that will cost me before signing the contract, but the internet tells me the specification comes later. Classic chicken-and-egg problem... if I want to add something during the specification phase, I have to go back to the bank and I don’t think banks like that at all. So I have to go to the bank with about a 10% buffer.
 

DerBerater

2020-05-29 11:30:35
  • #5
Hello Murmelstein, renting out the existing property is a possible alternative. However, in that case, your total loan amount would be approximately €1 million. Banks have higher requirements for credit assessments when the total obligation exceeds €1 million. Also, building societies generally do not agree to a lower repayment rate. Therefore, you should obtain offers for both options in advance – and openly discuss the process with the bank/financial advisor you trust. If you have any further questions, I am happy to assist you. Best regards
 

K1300S

2020-05-29 11:58:56
  • #6


That does not have to be true in this absolute sense. Of course, you can't select tiles, floors, or fixtures in advance – well, you could, but the general contractor usually doesn't want to – but quite a few things can be generally planned (like higher-quality interior doors/windows, tiled showers, etc.). Everything beyond that may have to be selected later, but can still be calculated. Depending on the bank, it may be necessary to present a confirmed total cost estimate (from the general contractor) so that the estimate is given the necessary credibility.

But the estimate/calculation is only one thing. Ultimately, you should be reasonably sure that this target amount can be financed in the way you need. Without knowing the exact details, I could imagine that there won't be top conditions due to the loan-to-value ratio, which makes the financing more expensive.
 

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