Process of Financing and House Construction

  • Erstellt am 2017-04-27 08:37:05

Caspar2020

2017-04-27 09:59:06
  • #1


You usually don't give anything away; most are glad not to have rent, interest+repayment, and unplanned expenses around the construction site all at the same time.

Besides, the fixed interest period has nothing to do with special repayment options or with which initial repayment rate is applied.



You determine the residual debt after 15 years yourself, with special repayments and the initial repayment rate.
 

ypg

2017-04-27 12:37:49
  • #2
So, I would wait until Oct/Nov 17 to see if the development work might still be delayed. Then have the soil report and do the final planning with BU as well as prepare the building application. After that, you have to wait for the approval and suitable weather conditions before starting. Authorities and BUs have a different logistics than builders, so I would schedule the start of construction later. Then plan for 9 months of construction time plus possibly EL for painters or flooring.

The logistics of authorities and the company as well as its subs, which are not understandable for us builders, are hardly influenceable, so building a house always takes longer than expected.

Best regards in brief
 

Lanini

2017-04-27 13:14:27
  • #3
We applied for the loan in December and received the approval at the beginning of January. Construction then started in mid-March. We decided on only 9 months of interest-free period (so the deadline ends at the end of September), even though we are fully aware that we will not have used up all the money by then. We also had an offer from the same bank with 12 months of interest-free period. The offers differed in the interest rate by 0.06%. This 0.06% higher interest for three months longer interest-free period would amount to about €2,800 more in interest over the entire fixed interest period at the same rate. Our interest charges for the 3 months will most likely not be that high to make the 3 months longer interest-free period worthwhile. We will - if everything runs more or less as planned - perhaps pay 1/3 of that amount in interest charges. Maximum. Therefore, we decided on the shorter interest-free period. You should also calculate something like this if you have concrete offers from banks and then decide what makes you feel more comfortable and what is more worthwhile. A shorter interest-free period can be worthwhile under certain circumstances if the interest rate is different for various interest-free periods.

As has already been said several times, repayment only begins when the loan is fully disbursed. For us, this will presumably be about 1 year after the financing agreement. Yes, you might "give away" the year, but that’s just how it is. However, you could also save the monthly rate each month and use it as a special repayment after full disbursement, then the difference is probably only marginal. We are currently continuing to save as in the equity accumulation phase before construction because we do not have to repay yet. However, we will not put this money into special repayment but will spend it on furniture etc. when the house is finished.
 

Aliban2014

2017-04-27 14:27:16
  • #4


Regarding the development work, I have to agree with you. That is also an absolute unknown. In the worst case, we might not be able to start in March at all. But if interest rates have risen further from August to November? That’s the only reason why I would prefer to finalize the financing today and without a building plot immediately.

I actually wanted to do without a soil survey because we will build without a basement and therefore considered it dispensable. But I would leave the final decision to the builder (architect?).

I had also considered the building permit as a possible delay, but I believe I have found a (great?) solution: there is (only in BW?) also the possibility to build "without a building permit."

Besides the regular way "building application" -> "building approval" -> "start of construction," there is also an alternative which was new to me.
There is a kind of “permit-free procedure.” Among other requirements, a qualified development plan is necessary, which exists in the new development area.
According to this procedure, the new construction only has to be notified, i.e., the same documents as for a formal building application must be submitted. In BW, this is called a "notification procedure." The municipality only “roughly checks” because you have to strictly adhere to the development plan in this case. We will do that - at least for now. If we deviate, this procedure is no longer possible and we would have to submit a "normal" building application.

The difference, however, is that the municipality/building authority has four weeks to object to this notification. If it does not object, the construction is deemed approved and you get a green light instead of a red one. There is then no acceptance or anything similar. The fees are supposedly lower for this reason.

The building authority has already confirmed this to me.



I'm really relieved that, for you, the repayment also starts "that late." Even if we split the loan to start repaying earlier, the rest that "remains" should be kept for an "early" special repayment or as an additional buffer for unforeseen things.

The unforeseen things will certainly come; after long reading here in the forum, I have no illusions about that. Also, the planned construction time will certainly not be met, that's something I simply assume. The question is always how much this will delay everything.
 

arnonyme

2017-05-17 17:25:39
  • #5
Hi, the fixed interest period only begins after full disbursement. At least, that's what my financial advisor at Dr. Klein told me.
 

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