Problems with equity - real estate purchase

I may have expressed myself a little incorrectly. Of course, that is a lot of money, and I have paid attention to every euro. What I just wanted to say is exactly your last sentence. Everyone pays what they can. And personally, I also count equity capital in that. Because at some point, you just can’t really separate it anymore. Especially when the difference in equity capital isn’t huge. How is that supposed to work with special repayments? One person, for example, gets a 5,000€ bonus per year. And the other gets nothing. Should you then forgo the special repayment just because the other person can’t add 5,000€, or maybe only 2,000€? In my opinion, that just makes life much harder.

The problem with rent usually comes down to one person’s income. Because the banks usually don’t approve their creditworthiness. And the partner has to be clear that they are only a tenant. And in case of doubt, they end up paying for the place of their possibly hated ex-partner without having any claim to a cent.

That kind of thing is tricky for sure. As I said, you should just consider looking at the whole thing TOGETHER, and that definitely includes the money.

One buys, the other is a tenant... I think that's nonsense! If a couple is ready to build/buy a nest together, then no one wants to be the other's tenant. Maybe even with a rental contract???? :eek: Apart from that, it will work even less with the existing equity. Not even if one already owns a property and the other moves in, will so much be divided separately. In any case, a joint third account will be set up, where everyone deposits their share. If one has only half as much income, then that person will pay more than the other so that in the end everyone still has enough for their own use. Whoever wants to calculate for the other that they have to pay 50 € more for insurance here hasn't understood the meaning of "coming together" ;)

My boyfriend also does not want to accept money from my father. It would be easier for ME if he did not contribute so much because then we could share the loan installments. So we share the KFW loan + the bank loan and I also have to pay back my father. That costs money, especially because I am the one who earns less than he does. However, he also says, of course, why should he pay interest if he has the money anyway. Makes sense.

Something like a repayment is done together! Why shouldn't your boyfriend accept borrowed money (from whoever, here your father)??? It will be YOUR house, and then you pay off together. If you were to separate in a few years, paid-off loans cannot really be settled (sorry, they probably can, but why?), because the other person would have had to pay rent anyway if no property was acquired. You don't pay down that much in the first years, so including that is, in my opinion, nonsense. You can do that after 20 years ;)

My boyfriend also does not want to accept any money from my father. It would be easier for ME if he didn’t contribute so much because then we could split the loan installments. So we share the KFW loan + the bank loan and I also have to repay my father. That costs money, especially because I am the one who earns less than him. However, he naturally says, why should he pay interest if he already has the money. Makes sense.

Purely rationally, I cannot understand why your boyfriend does not want to accept your father’s "loan." It would simply be a private loan then. Emotionally, I can partly understand it, as he (also possibly in the event of a breakup) does not want to be dependent on you/your family.

Nevertheless, this private loan (of course it must be precisely regulated) would have very big advantages for you. The interest rate alone is decisive here. Your father at least wants the rate paid on the savings account. That is a maximum of 1%. What does the bank want – depending on fixed interest period – between 2.50 and 4.00% (general statement). In addition, the bank wants to burden your property with a land charge – your father probably not. It would even be worth considering letting the KfW70 loan (currently at 10 years fixed at 1.5%) run through your father.

You save, roughly estimated on 70,000 EUR and a pure interest difference of only 1.50%, about 1,050 euros/year initially. If you also do the 50,000 EUR KfW through your father at 1.00%, that’s another 250 euros/year.

If your boyfriend cannot at all come to terms with the idea, you could possibly do the 20,000 EUR difference yourself through your father – at 1.00% interest this is a burden of 200 euros/year (here too you would save the higher bank interest). Yes – you would have to repay the 200 euros to your father, but just mathematically:

Loan father 20,000 EUR at 1.00% = 200 euros from you
Loan bank 20,000 EUR at 2.50% = 500 euros : 2 people = 250 euros from you

You would still save and be on equal footing with your boyfriend regarding the capital contributed and at least this problem is solved.

Purely mathematically, I would prefer the first option. The private loan only has to be contractually regulated in a sound and indisputable way – also so that your boyfriend can live with it.

But according to my wife, I am generally more of a head decision-maker (she decides more from the gut).