Purchase existing house plus financing

Hello,

General information about you:

[*]Who are you?
[*]2 adults, 2 children
[*]How old are you?
[*]30 and 35
[*]Are there children?
[*]2; 4 and 2
[*]Are you employed, self-employed, retired, housewife, househusband, etc...?
[*]Both employed
[*]How many hours do you work?
[*]Both part-time 80%

Income and asset situation:

[*]What are your incomes (gross/net)?
[*]4800 € net together plus assumed cold rent of the apartment plus underground parking 870 €
[*]How much child benefit is there?
[*]500 €
[*]How much equity do you have?
[*]95,000 (partly also funds, 60,000 of which in overnight money)
[*]How much equity do you want to invest in the house project?
[*]50,000

Expenditure situation:

Housing costs:

[*]current cold rent
[*]Ownership, installment rate see below
[*]current warm rent
[*]Condominium ancillary costs 250 €
[*]Electricity
[*]110 €
[*]Gas
[*]20 €
[*]Water, sewage, garbage fees, street cleaning
[*]Included in condominium
[*]Telephone, internet, mobile phone
[*]80 €

Mobility costs:

[*]1 public transport ticket 65 € plus 1 car, used and repaired by ourselves, supposed to be the last own car (then of course public transport + carsharing costs will increase)
[*]Car costs 55 € fixed + fuel approx. 200 € + spare parts for repairs ? €

Insurance costs:

[*]Liability insurance: existing, ? €
[*]Capital or term life insurance
[*]None yet
[*]Pension insurance (also Riester, Rürup, etc...)
[*]110 € + from salary
[*]Disability insurance
[*]70 € + ?? €
[*]Accident insurance
[*]2 times existing, ? €
[*]Household insurance
[*]Existing, ? €
[*]Legal protection insurance
[*]Existing, ? €
[*]

Living expenses:

All are paid from the joint account, including insurances. Income here is 1700 € per month from which we pay all shared expenses, including vacations. We have never had to add money in the last 3 years despite rising living costs. Each partner estimates roughly 200 € for themselves. I tried keeping a household book about a year ago briefly, it always matched well.

Savings:

[*]Partner 1: 46,000 € in 3 years (2020-2023), approx. 1200 € per month
[*]Partner 2: Owns the condominium alone, has repaid 70,000 € in 8 years (used special repayment) + saved 10,000 €, approx. 830 €/month; plus 200 €/month in funds

Other expenses:

[*]Loans?
[*]730 Euro for condominium ownership
[*]

Income and expense totals:

[*]Total income
[*]6170
[*]Total expenses
[*]2550 € (1700 € + 400 € for both partners + higher ancillary costs for the house) + 730 € apartment = 3280 €
[*]Balance 2890 €

General information about the property:

[*]Terraced house, built 1978, 150 sqm, energy efficiency class D, modernized in 2010, 2018, and 2020.
[*]Windows from 2018, bathrooms, floors and electrics from 2010, gas boiler from 2020
[*]We can move in as is and for example will not paint, but smaller things will have to be renewed gradually, for example the balcony
[*]Purchase price 318,000 €

Purchase costs:
Broker, notary and land registry, property transfer tax to

[*]Total costs of 350,000 €

Other costs:

[*]Kitchen costs: remain included
[*]Furniture, lamps, decoration: we take with us
[*]Other: 1000 € for old apartment (painting, 1 room new laminate, new sink in kitchen)
[*]Other: Balcony renovation shortly after move-in (recommended by appraiser) 5000 €

Cost summary:

[*]Financing amount: 300,000 €

Necessary loan details:

[*]Loan amount 1500 € - 1700 € desired installment
[*]Loan type annuity loan
[*]Interest rate ?
[*]Fixed interest period 15 years
[*]Fictive total term until full repayment preferably max. 30 years
[*]

[*]Special repayments possible? Should be included
[*]Repayment rate change possible? Not necessary

Hello, have read quietly until now, now registered with own financing. The property is concrete and reserved, financing is now being requested.

Above are the data. My questions are: Would we get financing? We are currently just starting to check banks for the concrete property. What would be a good interest rate? The apartment, now owner-occupied, is to be rented out. Of course, we do not yet have tenants as proof for the bank. Oh yes: purchased in 2015 for 170,000 €, fully financed, current residual debt approx. 100,000 €. The ancillary costs in the rather old existing building are difficult for me to estimate. Now 80 sqm with energy efficiency class B, then 150 with D, so about four times the heating costs. Also, previously many costs were included in the condo fee such as garbage fees, building insurance, heat via central heating, etc.

Despite the poor info input, I would appreciate feedback.

What exactly makes you doubt that you will get financing with your data? You need about 300,000 EUR, maybe 350,000, because you should always plan a buffer. And you have, including rental income, 6,000 EUR net/month. You can hardly finance something like this more solidly at the moment.

What exactly makes you doubt that you will get financing with your data? You need about 300,000 EUR, maybe 350,000, because you should always plan a buffer. And you have, including rental income, 6,000 EUR net/month. It is hardly possible to finance something more solid at the moment.

Doubts: Phew, just because. ..the property value according to the banks is not correct, there are no tenants yet for the apartment (we still live in it ourselves), I’m looking for reasons, if I think about it longer more come to mind. But thanks for the answer, I’ll reduce my doubts to a healthy level.

Doubts: Phew, just because. ..the appraised value according to the banks is not correct, there are no tenants yet for the apartment (we are still living in it ourselves), I am looking for reasons, when I think about it longer, more come to mind. But thanks for the answer, then I will lower my doubts to a healthy level.

I also cannot assess the appraised value with the given data. We have already financed two properties: the fact that the appraised value does not fit should not cause any unrest for now. Banks usually use value estimates based on data from the past years – and that is simply the problem. But just ask openly what the value estimate according to the bank is. With the banks we asked at the time, the value estimates sometimes fluctuated by up to 30%.

If I roughly calculate with 4% interest and 2% repayment, you end up with an annuity of 18,000 EUR per year, or 1,500 euros per month. I would have special repayment options included. Given your income/expense situation, you could certainly afford more, but that could then be managed via special repayments to save on the 4% interest.

So, having no tenants for an apartment that you still live in yourself and just have a reserved house is hardly surprising. But you should assess the housing market yourself regarding vacancy risk in your region. Of course, if you demand an excessive rent, the risk is also higher. If it’s not located at the end of the world or your apartment is only suitable "for enthusiasts," it should be rentable.

I also cannot assess the property value with the given data. We have already financed two properties: the fact that the property value does not fit should not be a reason for worry at first. Banks usually base their valuations on data from recent years - and that is simply the problem. But just ask openly how high the valuation according to the bank is. In the banks we inquired at back then, the valuation sometimes fluctuated by up to 30%.

If I roughly calculate that with 4% interest and 2% repayment, you end up with an annuity of 18,000 EUR per year, or 1,500 euros per month. I would have special repayment options included. Given your income/expense situation, you could definitely afford more, but that could then be done through special repayments to save on the 4% interest.

So the fact that there are no tenants for an apartment that you still live in yourself and only have one reserved house is hardly surprising. But you should assess the rental market yourself regarding vacancy risk in your region. If one obviously demands an excessive rent, the risk is also higher. Unless it is located at the end of the world or your apartment is absolutely only suitable 'for enthusiasts,' it should be rentable.

Thank you for the contribution. Regarding rent: I just found an ad for a smaller ground-floor apartment with an internal kitchen ! for 12.50 EUR per m2 cold rent in our street. Intense. There is no chance that this is a fair price. I take everything back and am more relaxed (and shake my head about the high rents).

[*]DETACHED HOUSE, built in 1978, 150 sqm, EEK D, modernized in 2010, 2018 and 2020. [*]Windows from 2018, bathrooms, floors and electrics from 2010, gas boiler from 2020 [*]We can move in right away and will not paint, for example, but smaller things have to be renewed little by little, for example the balcony [*]Purchase price €318,000

Why is the house so cheap if it is already modernized and ready to move in? Where is the catch?