LinaLustig
2017-01-06 16:15:35
- #1
Hello dear forum, dear forum members,
I registered here today in the hope of getting a few tips regarding my upcoming construction financing.
The situation is a bit special: I am single, childless, mid-30s. I studied, have been working on my doctoral thesis for several years now and am working "on the side," about 40% in employment with 1600 euros gross and also as a freelancer. For several years I have had a medical diagnosis that has the potential to limit my ability to work or possibly completely negate it in the long term (might be, but doesn’t have to be). I have disability insurance based on my current income, and legal insurance as well.
Since my situation has been causing me great concern for some time, I would like to buy a property. My parents have been supporting me financially so far; depending on how my health develops, I will probably have to abandon my doctoral thesis or still finish it. In any case, I will then work more – either as an employee or by expanding my freelance activity.
For me, due to my situation, any rent (which is not cheap for me now) is money thrown away, because I want to secure myself. Unfortunately, I have no equity – let’s put it this way: everything was planned differently…
My parents, both retirees (pension together about 4200 euros net), are willing to support me with the house purchase, also financially. The family owns two paid-off properties: on the one hand, the parental home, which should be completely excluded from any financing, and additionally a condominium (built in the early nineties, permanently maintained and with a solid long-term rental relationship), minimum estimated value 200,000 euros (located in the Stuttgart area, which has experienced immense price increases in recent years – trend is therefore rather upwards). Selling the apartment would be possible, but I want to prevent that because the apartment also offers a certain security regarding my parents and possible health problems.
I have no idea about construction financing; for my parents, it has been too long, so: our knowledge is limited to non-existent.
I have already contacted several mortgage brokers, both by phone and email; two personal meetings have also taken place.
For now, it concerns a specific property that I will take a closer look at these days and would like to buy if everything fits. The house is from the 18th century, is not under monument protection, the building fabric is very good. The roof is okay but already a few years old. The windows are less than 10 years old. It was completely gutted; all lines and connections were renewed, i.e., the following work is now pending:
- Laying flooring on the ground floor (preferred: exposed screed)
- complete electrical work (= sockets, lighting – the lines are already laid)
- new plaster (ceiling)
- possibly impregnating timber beams inside (don’t know if anything has been done here yet)
- sanding and treating floorboards upstairs
- attic expansion (insulation and making ready for living) including floorboard treatment similar to upstairs
- installation of heating (which one? no idea yet)
- installation of bathroom & toilet including floor (preferred: exposed screed)
- installation of kitchen including floor (preferred: exposed screed)
Architect, energy consultant, craftsmen will still be brought in before the final purchase contract, of course.
Purchase price including broker, notary, property tax – approx. 75,000 euros
Renovation costs estimated at approx. 65,000 euros
I now have several offers and really don’t understand because the advisors’ statements sometimes contradict each other significantly.
For example, it was stated that KfW products are not an option because I probably cannot upgrade the energy efficiency of the house (currently 300 ergo shortly before "shoot me dead") to modern new build standards with my financial means. Another advisor pointed out that some KfW products would be suitable (individual energy measures without the requirement for overall energy efficiency on new-build level, home ownership subsidy).
So far concrete:
1.) Offer 1 from a Volksbank via broker from Dr. Klein (personal meeting):
141,000 euros – 1.42% nominal interest fixed for 10 years, 1.5% repayment with option to increase (must be, of course, is much too low, but would initially give me some breathing room considering my situation, plus special repayments of over 5% possible)
Broker recommends building savings contract for security after the period expires
Borrower: only me, secured by mortgage (family apartment)
2.) Offer 2 and 3 via broker from Interhyp (personal meeting):
DSL Bank and Commerzbank with slightly different conditions – recommendation is Commerzbank (due to local branches and the special nature of the property I want to buy)
Split: loan (90,000 euros) plus KfW product (home ownership subsidy – 50,000 euros); the KfW product is always set for 10 years in every model.
Model 1 – 15 years fixed nominal interest --> DSL Bank 1.99%, Commerzbank 2.12%
Model 2 – 20 years fixed nominal interest --> DSL Bank 2.2%, Commerzbank 2.52%
Borrowers: family (all three), secured by mortgage.
3.) Offer 4 via Enderlein (by phone and email, not yet fully finalized): 72,000 via DSL Bank with 20 years fixed nominal interest 2.04%, approx. 50,000 via KfW spread over two products not further clear to me with fixed nominal interest of 0.78% and 0.93%. Amount is still set too low; it was the first broker I chose – before I roughly calculated the renovation costs with a “knowledgeable” acquaintance.
In addition, there was a suggestion of a simple capital procurement with the comment that this would involve less formalities (difficult valuation of the property to be purchased in its current condition, certified list of renovation costs by a professional, etc.).
Can someone give me their assessment based on these details? I would be very grateful :)
Many kind regards!
I registered here today in the hope of getting a few tips regarding my upcoming construction financing.
The situation is a bit special: I am single, childless, mid-30s. I studied, have been working on my doctoral thesis for several years now and am working "on the side," about 40% in employment with 1600 euros gross and also as a freelancer. For several years I have had a medical diagnosis that has the potential to limit my ability to work or possibly completely negate it in the long term (might be, but doesn’t have to be). I have disability insurance based on my current income, and legal insurance as well.
Since my situation has been causing me great concern for some time, I would like to buy a property. My parents have been supporting me financially so far; depending on how my health develops, I will probably have to abandon my doctoral thesis or still finish it. In any case, I will then work more – either as an employee or by expanding my freelance activity.
For me, due to my situation, any rent (which is not cheap for me now) is money thrown away, because I want to secure myself. Unfortunately, I have no equity – let’s put it this way: everything was planned differently…
My parents, both retirees (pension together about 4200 euros net), are willing to support me with the house purchase, also financially. The family owns two paid-off properties: on the one hand, the parental home, which should be completely excluded from any financing, and additionally a condominium (built in the early nineties, permanently maintained and with a solid long-term rental relationship), minimum estimated value 200,000 euros (located in the Stuttgart area, which has experienced immense price increases in recent years – trend is therefore rather upwards). Selling the apartment would be possible, but I want to prevent that because the apartment also offers a certain security regarding my parents and possible health problems.
I have no idea about construction financing; for my parents, it has been too long, so: our knowledge is limited to non-existent.
I have already contacted several mortgage brokers, both by phone and email; two personal meetings have also taken place.
For now, it concerns a specific property that I will take a closer look at these days and would like to buy if everything fits. The house is from the 18th century, is not under monument protection, the building fabric is very good. The roof is okay but already a few years old. The windows are less than 10 years old. It was completely gutted; all lines and connections were renewed, i.e., the following work is now pending:
- Laying flooring on the ground floor (preferred: exposed screed)
- complete electrical work (= sockets, lighting – the lines are already laid)
- new plaster (ceiling)
- possibly impregnating timber beams inside (don’t know if anything has been done here yet)
- sanding and treating floorboards upstairs
- attic expansion (insulation and making ready for living) including floorboard treatment similar to upstairs
- installation of heating (which one? no idea yet)
- installation of bathroom & toilet including floor (preferred: exposed screed)
- installation of kitchen including floor (preferred: exposed screed)
Architect, energy consultant, craftsmen will still be brought in before the final purchase contract, of course.
Purchase price including broker, notary, property tax – approx. 75,000 euros
Renovation costs estimated at approx. 65,000 euros
I now have several offers and really don’t understand because the advisors’ statements sometimes contradict each other significantly.
For example, it was stated that KfW products are not an option because I probably cannot upgrade the energy efficiency of the house (currently 300 ergo shortly before "shoot me dead") to modern new build standards with my financial means. Another advisor pointed out that some KfW products would be suitable (individual energy measures without the requirement for overall energy efficiency on new-build level, home ownership subsidy).
So far concrete:
1.) Offer 1 from a Volksbank via broker from Dr. Klein (personal meeting):
141,000 euros – 1.42% nominal interest fixed for 10 years, 1.5% repayment with option to increase (must be, of course, is much too low, but would initially give me some breathing room considering my situation, plus special repayments of over 5% possible)
Broker recommends building savings contract for security after the period expires
Borrower: only me, secured by mortgage (family apartment)
2.) Offer 2 and 3 via broker from Interhyp (personal meeting):
DSL Bank and Commerzbank with slightly different conditions – recommendation is Commerzbank (due to local branches and the special nature of the property I want to buy)
Split: loan (90,000 euros) plus KfW product (home ownership subsidy – 50,000 euros); the KfW product is always set for 10 years in every model.
Model 1 – 15 years fixed nominal interest --> DSL Bank 1.99%, Commerzbank 2.12%
Model 2 – 20 years fixed nominal interest --> DSL Bank 2.2%, Commerzbank 2.52%
Borrowers: family (all three), secured by mortgage.
3.) Offer 4 via Enderlein (by phone and email, not yet fully finalized): 72,000 via DSL Bank with 20 years fixed nominal interest 2.04%, approx. 50,000 via KfW spread over two products not further clear to me with fixed nominal interest of 0.78% and 0.93%. Amount is still set too low; it was the first broker I chose – before I roughly calculated the renovation costs with a “knowledgeable” acquaintance.
In addition, there was a suggestion of a simple capital procurement with the comment that this would involve less formalities (difficult valuation of the property to be purchased in its current condition, certified list of renovation costs by a professional, etc.).
Can someone give me their assessment based on these details? I would be very grateful :)
Many kind regards!