Real estate financing possible? Hardly any equity, Berlin area

Weren't you an IT guy at a bank, or did I remember that wrong? If you had been working in the real estate sector for 20+ years, you would have at least heard of nearby Switzerland - but that was already 30 years ago. Let's leave Spain out of the equation. Switzerland had very interesting accompanying factors - low interest rates, liberal granting of loans, a very strong expansion of the money supply, large immigration, and the feeling that real estate and land are safe investments. This probably led to a loose doubling of prices in the 1980s. It all seems very familiar. What goes up, must come down - except for Baron Münchhausen. The only question is which mix of factors will trigger the turnaround..

Switzerland is not Germany, or did I miss something? We live here in Germany and this is a German forum. Otherwise, you could just as well use the USA as a comparison. Or Dubai. Or Indonesia :) Yes, and I know what happened in Switzerland with variable loans. But the good German system is based on fixed interest rates and a healthy equity ratio if the bank requires it. I still haven’t seen a bubble in Germany in the last 20+ years but rising prices. Driven by an ever-increasing economic strength and a solid labor market. Even the financial market crisis or now Corona did not lead to falling prices. If someone wants to invest now, that’s not wrong. Those who want to wait, that’s okay too. There is no right or wrong.

Thank you for all the opinions and assessments from you! I am now taking away that we should increase our equity and at the same time look for suitable properties up to a maximum of €550,000. We would prefer not to overextend ourselves financially.

In my search, I keep coming across offers from prefabricated house companies like Allkauf Haus, Massa Haus, Schwabenhaus, etc., which have offers where the plot of land is already included and you can therefore build a prefabricated house with the respective company. At first glance, the offers are quite attractive in terms of price, since the land is already included in the offer. However, the fine print often states that the notary, property transfer tax, incidental building costs, as well as the painting and flooring work are not included. That’s not a problem at first since you pay less for it. What do you think of these offers? Are there any additional hidden costs? And how much should we calculate for the remaining items?

Thank you for all your opinions and assessments! What I take away now is that we should increase our equity and at the same time look for suitable properties up to a maximum of €550,000. We do not want to financially overstretch ourselves.

In my search, I keep coming across offers from prefab house companies like Allkauf Haus, massa haus, schwabenhaus, etc., which have offers where the land is already available and you can build a prefab house with the respective company. The offers are at first glance quite attractive in terms of price, since the land is already included in the offer. However, the fine print often states that the notary, property transfer tax, ancillary building costs, as well as painting and floor covering work are not included. This is not a problem at first, after all, you pay less for that. What do you think of these offers? Are there further hidden costs? And how much should we still budget for the remaining items?

All I can say about this is that no company gives anything away, and certainly no money/profit!

We also had 2 conversations with prefab house companies that had such offers on the internet.

With one company, a real estate agent was involved in the sale of the land and we would also have had to pay him 5.95% of the purchase price, but we were only told this later in the conversation. In addition, there were many things that we as laypeople would not have thought of. It was only when we talked to friends (who had already built) about the offers that we realized that, it felt like more was missing than was included...

In any case, I would definitely take someone with me who knows what should be included at a minimum in a construction service description.

The conclusion for us was that we no longer pursued such offers.

It is not cheaper. Everything is added up, land (real price, if the land exists), house externally by the house company, incidental construction costs and earthworks by the builder on site, and the upgrades (photos show surcharges and special services).

In my search, I keep coming across offers from prefab house companies like Allkauf Haus, massa haus, schwabenhaus, etc., which have offers where the plot of land is already included, allowing you to build a prefab house with the respective company. At first glance, the offers are quite attractive price-wise because the land is already included in the offer. However, the small print often states that the notary, property transfer tax, incidental construction costs, as well as painting and flooring work, are not included. That is not a problem at first; that's why the price is lower. What do you think of these offers? Are there more hidden costs? And how much should we calculate for the other items?

Additional costs, fees, etc., are never included, and everything, really everything you want differently or additionally on the house, immediately costs a few hundred/thousand extra. It starts with the smallest details. Then you sit in the planning meeting with the consultant/salesperson, and the offer price increases minute by minute. When you open the written offer 1-2 days later in your email inbox, nothing remains price-attractive.

The plots associated with these offers are usually not prime real estate but what's left over in the end (sloping location, unfavorably shaped, north-facing, directly on the main road, etc.).

You can build with the companies mentioned, but unfortunately, there is no super bargain to be had.

During my search, I keep coming across offers from prefab house companies like Allkauf Haus, massa haus, schwabenhaus, etc., which have offers where the land is already available, allowing you to build a prefab house with the respective company.

Ask for a site plan. The plots do not exist; they are simply imaginary plots to make everything look complete. Nearby, I could build about 15 Allkauf Haus and 10 Massa Haus houses, plus 20 Queenhaus houses, partly multiple times in the same development area of which I know all the plots have long since been allocated. Municipalities usually do not reserve plots for construction companies. And be careful if someone claims to have a plot. Ask for proof. And if someone actually has a plot, immediately factor in the real estate transfer tax for the entire package, because then you are dealing with a property developer.