Purchase of an existing property - Support with financing

  • Erstellt am 2017-04-08 10:13:18

derdom

2017-04-08 10:13:18
  • #1
Hello to the forum. We had actually postponed the topic of buying/building a house because we hadn’t found anything decent here over several years and were living quite cheaply renting at a friend’s place. However, we have now received a very interesting offer. I will orient myself on the template but shorten it. A brief and extensive self-disclosure has already been made with the bank and about €2600 free funds calculated.

General information about you:

    [*]Who are you? He is a department head, she is a pharmacist, married
    [*]How old are you? 35 29
    [*]Are there children? No
    [*]Are children planned? Yes, 1-2
    [*]Both employed, both permanent contracts, he since 2005, she since 2013 immediately after studies
    [*]How many hours do you work? 35 and 38

Income and asset situation:

    [*]What income do you have (gross/net)? he approx. 4700 / 2300 tax class V; she 3500 / 2400 tax class III plus both have holiday and Christmas bonuses, which are not included
    [*]How much equity do you have? approx. 48,000 + approx. 20k in insurances (surrender value)
    [*]How much equity do you want to put into the house project? 48,000

Expense situation:

Housing costs:

    [*]current cold rent: €470
    [*]current warm rent: €590
    [*]electricity €60
    [*]phone, internet, mobile: approx. €100
    [*]total: approx. €750


Savings:

    [*]Currently, depending on the month, between €2500 and €3000 remains. Sometimes more, sometimes less; holidays have also been paid entirely from this.


Income and expense totals:

    [*]Total income €4700 net
    [*]Total expenses: €2000-2500
    [*]Balance €2200-2700

General information about the property:

    [*]How large is the plot? approx. 430 sqm
    [*]New build, old building (year built), house type? Year built 1978, renovated in 2007 (roof, windows, exterior facade including insulation, new underfloor heating, bathrooms, installations, floors, etc. Very high-quality fitted kitchen remains, driveway newly paved, new terrace, house is ready to move in for us immediately without major investments.
    [*]Garages? 1
    [*]How large is the house? (living area / usable area) 196 sqm


Building or purchase costs:

    [*]Purchase price: €359,000
    [*]Additional costs (3.5% + notary) €17,950
    [*]Total costs €376,950


Cost summary:

    [*]Total costs: €376,950
    [*]Deductible equity: €47,950
    [*]Financing amount: €329,000

Necessary loan details:
(for multiple components state for all components, for multiple options please clearly distinguish):
Total loan amount €329,000

Component 1

    [*]Loan type KFW124 €50,000
    [*]Interest rate (p.a. nominal) 1.450%
    [*]Interest fixed period 10 years
    [*]Outstanding principal at end of interest fixation approx. €33,000 not clear from documents
    [*]Fictive total term: 25 years 2 months
    [*]Initial repayment rate 3.49%
    [*]Monthly installment: €205.67
    [*]Prepayments possible? No
    [*]Repayment rate change possible? (Conditions such as number, repayment rate range to be stated)


Component 2:

    [*]Loan type Bullet loan with building savings contract €279,000
    [*]Interest rate (p.a. nominal) 1.910% / 2.39% effective
    [*]Interest fixed period 15 years
    [*]Monthly installment: €990.92 incl. savings rate
    [*]Prepayments possible? Yes
    [*]Savings rate €546.84 LBS u+4, 30% savings sum, credit interest 0.1%, savings sum: €83,700 tax class without restriction,

Total burden: €1200, we plan with tax class, so that we want to reach an average rate of approx. €1800.
I now want an offer without a building savings contract, that’s too confusing for me. If we really manage our tax classes, we won’t need the extended interest security because we will be done much faster then.

We would be interested in your general opinion on our project. A brief note on equity: last year we bought 2 new cars in total €50,000 and got married totaling approx. €20,000. So we are definitely able to save money.
In case of a child, he switches to tax class III and she to V. Income then approx. €4300 net. Tax back payments (total last years approx. €3000 p.a.) and special payments such as overtime were deliberately not included.
 

Caspar2020

2017-04-08 19:30:46
  • #2


Have you ever been somewhere other than Sparkasse?

Especially the savings rate x12x15 results in about ~98,000 for me minus closing fee ~= 95K, that’s a decent difference.

How do you proceed then? With 2.55% effective?

And the total costs (and also the overall effective interest rate) are significantly higher than with a classic 20/25 year annuity loan, since you don’t amortize anything in the first 15 years. And the LBS is also not the cheapest.

Where do you want to put the special repayment in the first 15 years?
 

Caspar2020

2017-04-08 19:34:23
  • #3
And even if there are no major investments; just painting the place and here and there one or the other thing adds up to a four- to five-digit amount.
 

derdom

2017-04-09 09:38:20
  • #4
@caspar you are right, I must have miscalculated the savings rate... I will change that. It is not specified like that, I got the months mixed up. After that, it apparently continues with 2.35 if I read it correctly. It’s not really clear. I got this from the LBS data. In ESIS it is stated with 2.39 effective, but I don’t know if that refers to the bullet loan or the building savings contract.

Special repayment would go 100% into the building savings contract, which would then be ready for allocation sooner. After a short phone call, they said the loan would then be redeemed earlier. But that doesn’t bring me any interest advantages at first, if I interpret that correctly.

The bank does not offer an interest lock longer than 15 years. I also tend towards a module with a 20-year term, there is still an offer pending. The 1% closing fee for the building savings contract is a big thorn in my side. Also, apparently, there is no guaranteed statement, because when asked, they only said the pot is never empty, etc.

The remaining debt from the KFW is also unclear to me, because then I have to save the 33k at the beginning and can’t or can hardly make special repayments. I might be better off with a larger one if I can make special repayments right from the start. I need to create an Excel sheet and calculate that when I have another offer.

I would estimate renovation costs at a maximum of 2-3k, which is really generous, you wouldn’t even have to paint. Many thanks so far!
 

Caspar2020

2017-04-09 17:52:51
  • #5


When was the last time it was painted? And are the rooms already empty or were there still furniture during the viewing?

Yes, you have to calculate carefully with Kfw. But I would guess that with 600x12 special repayments per year, the KfW still pays off.



Yes, especially because it applies to the entire sum needed, since a bullet loan is being redeemed.

Above all, I would recalculate with Excel what the total costs over the entire term of the respective options are.

I almost assume that a proper 20/25 with a possible building savings contract to secure the residual debt insurance is cheaper.

I would take the KfW as long as the bank does not come up with a very good interest rate.
 

derdom

2017-04-09 18:12:39
  • #6
There were of course still some furniture inside, but rather simple and very few. The walls were relatively freshly painted, I didn't ask, but I think within the last 2-3 years. Paint doesn't cost the world and we can paint :) The KfW just has the disadvantage of the RS, but I think that will be manageable. We have now been to a financial service provider, let's see what comes out of it. This one dissected the first offer, but well, they naturally want the commission too!
 

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