What do you get for 1000 euros/month in credit?

Hm... ok, I can well understand that the equity ratio should be as high as possible. As a business economist, I am certainly familiar with the mechanisms of the banks and can also understand them. But life does not always run ideally for some people (divorce, insolvency, etc.), and so not everyone has equity in the desired amount. Should such people be denied the dream of owning their own home? Sometimes a little courage and restraint are not the worst for such a project. Of course, no one should overextend themselves, and a good sense of proportion should be applied. Don’t sugarcoat the numbers, rather calculate a bit more conservatively than too optimistically. But there are certainly enough people who can manage such a house-building project even without equity. I think everyone has to critically question their project for themselves.

In my case, unfortunately, it is exactly like that. My wife and I are both in our mid-40s, both employed (long-term at our companies), and due to divorce, we have no equity. Past obligations are now completely settled, and there is a monthly net income of about €4,000 together. Additionally, each of us has a fixed 13th-month salary and in some cases even significantly more (though the extra is not included for us). We have no children and certainly do not plan any. Unfortunately, equity is only available in the amount of a new kitchen and some new furniture (about €17,000). We now have an offer from a developer personally known to us for a semi-detached house at a price of about €250,000 including land, which we will probably accept. Sure, this is certainly not pure luxury, but I think we cannot expect that in our situation. And looking at our age, waiting much longer would certainly not be cheap either. But when I read here, I am now getting scared and anxious. However, my gut tells me that we should manage it.

And now back to the subject: For €1,000, I would currently get about €200,000.

Best regards

Michael

If a financing is not stretched to the limit and there is a correspondingly high income that is also used for repayment, there is nothing against financing without equity.

If a financing is not stretched to the limit and there is a correspondingly high income that is also used for repayment, there is nothing against financing without equity.

That's exactly what I think too. Unfortunately, in my opinion, this is sometimes swept under the rug here. Blanket statements about individual cases cannot be made from a distance. Unfortunately, as a layperson in such a useful forum, one can sometimes be a bit unsettled by this.

Oh, one more thing about the original topic. It was said that you get an amount of 100,000€ for 400€ repayment. So far so good. However, that does not mean that you now get 300,000€ for 1,200€. Don’t make the mistake of simply relating such figures... that unfortunately doesn’t work.

Regards

Michael

Hello everyone,

We have built, and we are moving into our little house this weekend. The last installment to the general contractor will also be paid this week.

Maybe my brief summary will help you. Now that I know exactly what it all cost us.

House 116m² pure living space, no basement, 1.5 stories, attic prepared for expansion.
Plot 290 m² (not big but enough for us).
He is 52 years old, I am 43 years old. The loan amount was 215,000,-- equity was only 25,000,--

The total expenses now amount to 240,561.00 in the end. There were 5 months of double burden due to rent and interest. We managed this on the side. Various furniture purchases were also managed on the side by us. Through the ongoing income from our salaries.
All costs are included in this money, along with all incidental costs such as earthworks, electricity, tiles, painting work, paving work for driveway and terrace, notary fees, all connection costs (gas, water, electricity, telephone and internet). We were also able to pay for the kitchen with it.

The financing runs only through my husband, because we want to be able to manage without my income in case of emergency.

The monthly repayment is 872.19, almost as high as our current rent, so no problem for us.

We calculated that with extra repayments we will be done in just under 13 years.

If you want to pay more or have other questions, there is a PM after all.

Regards Chelria

And while we're at it: we pay just under €630 for 207,000 (100,000 through KfW, 107,000 through the remaining loan). With a good €60,000 as equity. All only for 10 years, because my husband will reach 65 in 10 years and can then have his company pension paid out. That will then almost fully repay everything. We also have around €4,000 available (after deducting child support payments, so-called old burdens). When paying off, the ground lease for the property is added on for us - all in all, €600 come into the house account from each of us, and with the rest, you can live very well.

@ Chelria
But you do realize that you’re paying almost €2000 monthly if the plan is to work out?
To achieve full repayment with additional payments, you need to raise almost €10,000 annually.

That’s why your answer is unfortunately not usable at all for the questioner.

Your construction costs also sound very low at first. Although you didn’t mention how much personal contribution there was or what the plot of land cost.
If you’re moving in now, this amount will probably be about right. For us, building with that money is unthinkable, even if you only built 90 sqm.
The land prices are almost your house price, or higher.