Slowly but doubt about financing

These assets do not generate cash flows from which interest and principal can be paid. Therefore, they are only of limited help: collateral yes, but not debt service.

That is exactly of only marginal interest to the bank. Especially when there is collateral. And of course, the properties can be liquidated. However, due to the right of residence, only with significant discounts.

If the cash flow is not sufficient to service the loan, no bank will enter into the loan, it is not allowed to do so. There may be 10 times as many assets as collateral..

If the cash flow is not sufficient to service the loan, no bank will grant the loan, they are not even allowed to. There can be 10 times as many assets as collateral..

That is a truism. But the cash flow is currently sufficient and collateral is not being accepted for it.

Have a look at the current consequences of the EU residential mortgage credit directive

Hello everyone,

thank you very much for the many opinions.
Maybe once again for better understanding:

I mentioned the real estate because it is part of the framework conditions. It is clear that, if at all, the bank only considers it as collateral and not as "future income".
However, they are important to me in my personal assessment of the situation because in case of emergency there is still some support. Without this safety net, I wouldn't do any financing anyway.

Basically, I consider the construction financing independently, i.e., can we afford it and does it make sense given our income/equity?

By the way: if we build, then only to this extent. We will not make big compromises. Because: if we cannot build according to our wishes, we will look for an apartment and eventually move into my parents' house. That is also not according to our ideas, but (to put it bluntly) costs nothing. Otherwise, that would be burning money.

Greetings from Ingolstadt,

- €350,000 pure house construction (after many talks with friends and builders, we arrived at about this amount, planned are 180-200 m² of living space with a cellar)

never ever... everyone in our wider area is at €140-150 including cellar around €350,000 - without any fancy stuff. Solid construction with decent standards. For 180 sqm, I would realistically consider €430,000 in our region. And Munich is not cheaper than 80 km further north.