Single-family home financing through stocks

Alternative financing (we are building a granny flat):

Better cross that out directly as well, the additional costs of the granny flat are usually never covered by the rental income, nor will you experience the amortization.

Alternative financing (we are building a granny flat as well):

Object costs: 600k (land 200k, house 300k+, as well as incidental costs, no notary)

300k for an object including a granny flat? That seems very tight to me.

Thanks for the first feedback! That was quick, a really lively forum.

More info:
I have not consulted any bank so far; my outline here is for preparing the bank meeting. I don’t want to have no answer at the first question from the banker...

Property costs: 600k (land 200k, 14k incidental costs, house with everything else 386k). Might have been unclear before.

Income: I am permanently employed, income will certainly increase. In addition to the 4000 net, there is usually a 5000 annual bonus gross. My wife plans to start working part-time, net possibly 600-900 earliest in 4 years.

Household budget: Living with all contracts (GEZ,...) warm 963€ (will then fall away), provision 77€, currently no car (will be a used one, separately saved maximum 14,000€, previous car with insurance + fuel + depreciation 300€/M), food + household 400, vacation 200, other 200 = 2140 expenses (welcome to the Swabians =)).
Regarding rental surplus, reserves for the 2 apartments are continuously formed, surplus here really means surplus.

Equity: The 100k equity is self-saved, I don’t want to bring in more or only very reluctantly (precisely because I consider a higher after-tax return more realistic).

Stock market: I understand the tips regarding the stock market, have already gathered my experiences. I hope to achieve 3% return annually. Due to the current crisis, I have done very well actively. But I have no romantic ideas about quick money in general. In the first five years without repayment (KfW) I want to save at least 700€/M. That would already amount to almost 50k with compound interest, adding to the remaining equity already available. I have calculated various scenarios; regarding the amounts I hedge naturally and rely on risk diversification, etc. I am very aware of the risk and take care to reduce it as much as possible. But enough about this.

Gift: My parents have long-term care insurance, several properties, one is to be sold shortly. My brother currently lives there. We have a very open relationship. Of course, one should not rely 100% on anyone.

At the milestones, 1. after 10 years where, as I understand, the interest rates at KfW can change, as well as at the 2nd milestone after 20 years with the bank loan, I will repay fully, should the interest rates be significantly worse.

My question is, do banks allow such financing and if so, what conditions must be met? I estimate about 20-30k free land charges I already have on the 2 apartments. Proof of equity as well, how much additional equity (not used for financing) might the bank want to see? Does a guarantee or entry on one of my father’s properties help – how high would this have to be?

I look forward to your feedback. Hopefully I have not forgotten anything important.

I still haven't understood what you want. A normal financing with repayment and additionally saving in stocks, or a financing with repayment suspension against saving in stocks? The latter is almost impossible.

What you save on the side or intend to save does not interest the bank. "Warm" costs do not disappear either, you still have additional expenses. Only cash is real! Stocks not really. Before I smooth out the stocks and expect a return there, I realistically calculate a good repayment to keep the financing healthy.

What you are saving on the side or intend to save does not interest the bank.
"Warm" (costs) do not disappear either, there are still additional costs.
Only cash is real! Stocks not really.
Before I calculate the stocks nicely and expect a return there, I realistically calculate a good repayment to keep the financing healthy.

Correct

and currently the stock market time is nonsense as a comparison anyway. It goes up 3% one day and down 7% the next.

I read your last post again. There is a solid income, the wife has no income. Then two rental apartments are being financed.

So with 4k net, 500k has to be financed and something still taken off for stocks?

And what do you want to live on?

but as wrote, repayment suspension in exchange for assignment of the depot does not exist. Such models once existed with life insurance and were no longer offered at some point when the life insurance interest rates went to the basement.