Slowly but doubt about financing

2016-06-15 11:59:34

Where is the option with existing buildings? You can save quite a bit there. Emphasis on "can," you have to be lucky and do it right (expert...).

More equity is not necessarily required; a full financing is also possible (but I would never go over 100%, that's just too expensive). But then with a correspondingly high repayment.

The problem here is that you have to live with a lot of compromises. We initially also searched only for an existing property and were not even fixed on a location. Still, there was nothing suitable for over 2 years...

2016-06-15 15:40:50

Building on existing properties after purchasing real estate is practically out of the question for us anyway. Less because I don't want to, but rather because existing properties in our region are way too expensive. Currently, there are a few offers:
- 155m² living space, 450m² plot, built in 1976 (renovated in 2012), negotiable at €490,000
- 186m² living space, 900m² plot, built in 1978, negotiable at €599,000
- Semi-detached house 113m², 600m² plot, new build (energy PLUS), negotiable at €728,000

You can see—especially here in our area—the prices are shooting through the roof. The €250/m² is also only the local price in my municipality. For outsiders, the same land costs €280/m², and privately, so basically on the free market, you now pay around €350/m².
In addition, there are now 95 applicants for this new development area where (hopefully) my plot will be, for 17 parcels.

The only possibility for an existing building would eventually be the parental house. But I still have to wait (hopefully) 20 years for that, and then for the reasons mentioned it will be too late for me to invest a lot of money.

2016-06-15 23:23:19

Well, you really have to be lucky, we also searched for quite a long time back then and it’s still a compromise. You might still have to do quite a bit. There probably isn’t a perfect solution. However, it’s not urgent for you yet, i.e. you could still search for 2-3 years and keep saving. But if prices on existing properties stay like this and there’s really nothing affordable, it probably makes no difference compared to new construction. So 500,000 – you could just as well build new for that. At half that price, an old building would definitely be worthwhile.

2016-06-16 06:43:47

Finding anything at all that you like is already difficult, and if it is then also in a sought-after location, it is practically impossible or dozens of people immediately rush at it and the prices are completely exaggerated. Eventually, you just get tired of searching, especially since building and also the prices for existing properties are not getting cheaper. In the place of the OP, I would build now if the finances allow it. I would rather then, as already mentioned, try to cut a few things or build something smaller. If you do not ABSOLUTELY need the space now, you will be glad later when the children have left home, and now for example 200 € less in monthly expenses can noticeably make life easier.

2016-06-19 10:04:22

Building on existing properties after purchasing a property is practically excluded for us anyway. Less because I don't want to, but rather because existing properties in our region are far too expensive. Currently, there are a few offers: - 155m² living space, 450m² plot, built in 1976 (renovated in 2012), asking price 490,000€ - 186m² living space, 900m² plot, built in 1978, asking price 599,000€ - semi-detached house 113m², 600m² plot, new build (energy-plus), asking price 728,000€ You can see – especially here in our area, the prices are skyrocketing. The 250€/m² is also only the local resident price of my community. For outsiders, the same land costs 280€/m² and from private sellers, meaning essentially on the free market, one now pays around 350€/m². In addition, there are now 95 applicants for this new development area, which (hopefully) will be where my plot is, on 17 parcels. The only option for building on an existing property would be eventually the parents' house. But for that, I still have to wait (hopefully) 20 years, by which time it is already too late for me for the reasons mentioned to invest a lot of money.

I also find the number too tight. We have a 500k loan with more than double the income and >300k equity. Your problem is the difference between wish and reality. Unfortunately, the reality is an expensive location + a large desired house. So the only options left are: make concessions or increase income/equity. Regards, Steffen

2016-06-19 11:49:25

Build smaller, good and nice, but you don’t save much that way. My sister recently built in Bavaria, small and compact. For her, the construction costs were also >300K without the land.

Have you ever considered the option of a [Einliegerwohnung]? Sure, building will then be a bit more expensive, but not so much in relation. Then 500 euros cold rent per month, that brings a bit of breathing room in the financing.

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Slowly but doubt about financing

Peanuts74

cybergnom

Elina

Peanuts74

Steffen80

MarcWen