Slowly but doubt about financing

Can the inheritance assets expected at some point be included as collateral (later about €1,700 rent as extra money) or should a new building be considered completely isolated?

The parents' assets melt away like ice in the sun in the event of the parents needing care ....

So - securing the loan is not a problem (but talk to your parents about it so they don't fall from the clouds). (e.g. register a land charge on the house) In your place, I would also try to pay off the remaining loan on the condominium. (new land on the condominium)

With these securities, you should get almost perfect conditions (almost 100% secured). Or could the usufruct rights here be value-reducing - question to the credit experts among us bankers?

But now comes the difficulty: If you calculate with an average 5% annuity, with 500,000 EUR you would have a monthly rate of about 2,100 euros. As long as you both earn, this should not be a problem. But if children come along, it looks bad. You alone will no longer be able to afford the rate.

A few suggestions for a solution: 1. As long as you are an only child - your father could possibly support you with part of the stock fund (100-150,000 EUR - there would still be 200-250,000 EUR left as security for your parents). WARNING here: If you have already had the house transferred to you in advance, talk to a tax advisor beforehand. Keyword: gift and inheritance tax / allowances. So that you don't have to pay heavy taxes unnecessarily.

2. Build something smaller. Is the basement absolutely necessary? 35-40,000 EUR

3. You may have estimated the incidental costs ( ) and the buffer a bit too high. We currently have a thread running where this buffer would be useful, but I think it is very high. You will probably learn more about this during the construction companies' presentations.

PS: Very good that you did not include your wife's part-time job and commissions. This gives you an additional capital buffer of about 800 euros per month.

The OP and his wife own two properties. Both come with the right of residence, but why shouldn't they be considered as collateral? There must be some value minus the right of residence.

The assets of the parents melt away like ice in the sun in the event of the parents needing care....

If the assets are used up elsewhere, then the children have to step in. Since the house becomes vacant (I know, sounds macabre), rental income comes in, which will probably go toward the care costs.

On the other hand: The potential care of the parents (or the costs) hangs over every homebuilder like the sword of Damocles (this too is macabre).

The OP and his wife own two properties. Both with residential rights, but why shouldn't they be included as collateral? There must be some value minus the residential rights.

These assets do not generate cash flows from which interest and principal can be paid. Therefore, it only helps to a limited extent: collateral yes, but not debt service.

These assets do not generate cash flows from which interest and principal can be paid. Therefore, it only helps to a limited extent: collateral yes, but not debt service.

Perhaps they even generate costs. Depending on the contract design, these may include ancillary costs and maintenance costs.