Why is financing so difficult?

Hello,

toxi hit the nail on the head. Furthermore, too naïve. The bank wants a house to be completed and not to make the construction look better than it is. If something unexpected happens that costs money, which is not unusual in construction, there will be problems. Then you have to add equity (which you don't have) or get additional financing from the bank (which is a burden for you and a risk for the bank).

If I were you, I would leave it or look for existing properties appropriate to your income.

The income is high enough. It would make more sense to reduce the ongoing costs and save for 2-3 years. In the meantime, one could get rid of the loans and add another layer of equity. Then adjust the demands to manage with a financing rate of 1000€ per month. The construction calculators are available in abundance online. 3500 euros in ongoing costs every month is really something...

The property is a bargain. In our region, I already pay more for 600 sqm. We would be stupid not to take it. Another property we looked at measured 580 sqm and would have cost 140K €. In addition, it would have been located directly on a street, schools and such quite far away and in a built-up area.

Why no equity? Parental leave, moving, car purchase + some annoying repairs, payout to ex, vacation with 3 children, maintenance costs, divorce, ... especially the parental leave has hit hard. And you must not forget my age I'm only 28. Until 3 years ago I traveled a lot. My boyfriend is burdened by divorce (before that sole earner) and pays a lot for maintenance + old loans.

Unfortunately, we will not be able to reduce expenses excessively (except rent and soon also the loan installment). Maintenance will remain, daycare too. That already makes 1200€ together. In addition, insurance and internet + mobile phone (we will cut back a bit on that next year). Fuel costs will only be slightly reduced (instead of 50 km just 40 km).

160 sqm? Bungalow with a room for 3 children. Our youngest has his own and his 2 share one. Plus a spacious utility room, since we don’t want a basement. You quickly reach these sizes. We now have a 147 sqm bungalow in sight, which will probably be the one.

My parents are giving us a good financial boost. They are paying me out. That still doesn’t get us to the sometimes required 20% equity by some banks, but at least close.

We will do the financing through a financial broker. He took the trouble and showed us exactly how a bank will pick us apart. According to him, it will be less about the equity, but about the fatal small loans (The nice 0% financing for bedroom closet and kitchen). But we can easily pay those off now, which will clear this obstacle.

Great, then everything's going well with you! Just practice restricting during construction / after construction in advance.

You have to take a bargain... But of course... The real estate agent will surely sweeten the deal. In this case, a good agent. Child support will probably be higher, and then the fact that you like to submit yourselves to these offers, whether 0% or bargain (it can also easily go over an amount of ü100000). You have to decide if you can change yourselves. And as you already say: you are only 28...

lol. Anyone who believes they can get a bargain in the current real estate market should better not start building a house.

Unless you rip off some old grandma and prevent the property from appearing on the open market.
Currently, properties are sold without ads & agents, death notices are studied and after a week of mourning, a different interested party comes by every day asking if you want to sell..