Property in good condition financable?

  • Erstellt am 2024-02-03 14:23:42

Rexona96

2024-02-03 14:23:42
  • #1
Hey,

for some time now I have been looking for a property that is in good condition and appears attractively priced for its location. Recently, despite our original plan to purchase a property only in 1-2 years, I found a perfect object. The property is located in a very good area and dates back to 1997. A year ago, the previous owners carried out renovation work worth over €100,000, including a new garden (cost €50,000), an efficiency improvement through a new gas boiler, and photovoltaic systems that cover the entire electricity demand of the building. It is an end-of-terrace house with a large garage, etc. The house is very modern and should not require any further work for at least this decade.

Could financing also be realized without equity?

About us:
We are a young married couple.
I am 28 and my wife is 24 years old.
We have no children and currently do not plan any.
Professionally, I work as a DevOps Engineer at one of the ten largest companies in the world and my wife works as a nurse.
Both of us are employed full-time with permanent contracts. I work 40 hours per week and my wife 38.5 hours.
Our net income amounts to €2870 and €3100 plus €450 from a mini job (approx. €6500).
Our equity amounts to €0.

Our monthly warm rent is €530 and we spend about €550 per month on mobility.
Other small financings will be paid off during the year, the total amount is at most €5000.

About the property:
The end-of-terrace house was built in 1997, has a living area of 120 m² and a plot of 220 m².
It is heated with a gas boiler from 2020 and has an efficiency class A.
The photovoltaic system covers the entire electricity consumption.
The floors and doors (including frames and so on) were newly replaced.
The WC was completely modernized.
It has a large garage.
New triple-glazed windows with integrated insect screens everywhere.
The kitchen as well as a garden house and much more are included in the purchase.

The purchase price is €450,000 excluding acquisition incidental costs, which amount to about €50,000. We can cover other costs from private funds, leaving no equity for the financing. It will probably come down to a 110% financing. I have also considered financing the €50,000 incidental costs separately and then using them as equity, as the interest might be lower then.

The installment should not exceed €2400 and the repayment rate should not be only 1%. Does this seem possible currently? Has anyone recently gained experience without equity?
 

Jesse Custer

2024-02-03 14:45:31
  • #2
It was only possible within the circle of friends through a guarantee from both sets of parents...
 

Kugelblitz

2024-02-03 15:05:16
  • #3


Well, you can figure it out yourselves.
€500,000 loan - for each percent (whether interest or repayment) you pay €416.
I don’t know what interest rate the bank is offering you. I will assume 4 percent. If you then want 2 percent repayment you are at a 6 percent annuity.
6 times €416 = €2500.

In your place, I would save equity.
 

Robbobbob

2024-02-03 15:15:50
  • #4
If I were you, I would wait a little longer and save up some equity. In addition to interest and repayment, there are various additional costs (tax, heating, electricity, insurance, reserves, water, garbage, etc.). That probably puts you at almost 3000 EUR per month. We just bought a house for 520k with 100k equity, and we really couldn't afford much more. Our net income is also quite a bit higher. You should spend a maximum of 2.5k per month for everything combined.
 

ypg

2024-02-03 19:02:16
  • #5
Oops… are you only earning now? So, did you have training before, that you have nothing? which other costs do you mean? Have you already been to a financial service provider? If I were you, I would make a quick appointment so that you know what kind of credit is possible. Personally, I consider the age still quite young to, on the one hand, commit to a house that makes you immobile for further career opportunities and, on the other hand, to want such a high loan. But well, that’s up to you to know to what extent the career is completed. By the way, the child gene comes later too – so better plan for it in about 5 years.
 

SoL

2024-02-03 19:05:08
  • #6
I also have to say that the description does not sound like you have been dealing with the topic for a long time. "Küche und Gartenhaus inklusive" is not something you choose a house for... Save a bit, a 110% financing is nothing great.
 

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