For many Germans, the dream of home ownership is as close as ever because of low interest rates. Find out how buying a home without equity works. When you buy a home without equity, interest and repayment are higher than when buying real estate with equity. What you should consider when buying a home. Three types of home loans are common: has more information

How much capital is needed to buy a house?

How much capital is needed to buy a house?

When you build a new house, you not only have to pay the purchase price and the ancillary acquisition costs, but also the interior – for example, the new interior design, special equipment for the bathroom or the chic forecourt. In fact, it’s all part of the house, but in most cases it’s not possible to lend it a home loan.

For from the bank’s point of view, furniture and mobile objects generally do not provide an acceptable value for a loan of this amount. As a rule of thumb, everything that can be moved can not be covered by the mortgage. Some credit institutions do not consider this to be strict and still give higher loans as long as the lending value of the real estate does not exceed.

However, this is at the discretion of each institute; Bank customers are not entitled to this and should in any case inform themselves beforehand how this issue will be dealt with. Because a small stumbling block lurks here: Suppose you invest your savings in the beginning completely in the payment of the individual components, the rest of the construction is then financed with the loan, and in the end you have some of the remaining loan amount available in the new Furnishings kitchen flows.

Therefore, it is important that you retain the capital for these benefits from the beginning. One can convince oneself of one’s own achievements: they start their own business with the new building and exchange the artisan. Above all, you save labor costs through your own work, because you probably do not have to calculate the working time yourself. Work that the buyer of the house or an unprofessional employee can do himself, such as painting walls or laying tiles, can be considered a self-directed measure.

The savings on their own are therefore more or less self-supporting.

The savings on their own are therefore more or less self-supporting.

An expert should always be consulted to make a well-founded assessment of whether time, effort, and revenue are in balance. As a rule, banks take up to 15 per cent of the loan amount as own contribution, but usually not more than 30,000 USD.

It is realistically possible to demand between five and ten percent as own contribution. What you want to do at home and whether you are capable of doing so is being tried out by the banks. In principle, property developers who are also skilled in trade by trade have better opportunities to receive the highest possible compensation for their own services.

After a survey of the owner-protection e. V. Among 500 homeowners, half of them said they had saved 10,000 USD on their own. With 22% it was 20,000 USD, a further 22% could save 25,000 USD and more on their own. But that does not save the world: wallpapering reduces the construction costs by a maximum of 4,000 USD.

The creation of gardens and terraces leads to a maximum saving of about 3.000 USD. The installation of frames and gates can also be carried out by the customer himself and reduces the total costs by around 3,000 USD. If you do this yourself, you can save up to $ 5,000. This is a clear disadvantage for your own efforts:

In case of doubt, the resulting repair costs are greater than the savings during construction due to the higher equity capital. In this case, he should set up an accident insurance, a so-called construction assistance insurance for all those involved in the construction. The effort is manageable. For these services, do-it-yourself enthusiasts usually take time aside from their actual job: after a weekday, at the weekend or on vacation.

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