ᐅ Relation between Construction Cost and Financing – Survey
Created on: 11 Aug 2019 18:30
H
Hauswunsch 23
Hello,
the traditional rule is that the equity share should be at least 30% of the construction cost/purchase price. Also, that the loan installment should not exceed 40% of the income (preferably only the main earner’s salary).
But how many still stick to these ideal criteria nowadays?
I’d be glad if users shared their percentage figures.
Best regards and have a pleasant Sunday evening
the traditional rule is that the equity share should be at least 30% of the construction cost/purchase price. Also, that the loan installment should not exceed 40% of the income (preferably only the main earner’s salary).
But how many still stick to these ideal criteria nowadays?
I’d be glad if users shared their percentage figures.
Best regards and have a pleasant Sunday evening
The percentage figure of the salary doesn’t really say anything. Three times the child benefit plus the home construction allowance adds up to 900€ per month. If I didn’t include that, I would be paying nearly 50% of the monthly net income. Bonuses are also not included yet.
H
hampshire12 Aug 2019 08:13Construction costs covered by equity. A construction loan was taken out due to favorable interest rates.
P
pffreestyler12 Aug 2019 09:1024% equity
29 years old
Construction start 09/2018
Total construction cost including land 250,000 (without state subsidy/family discount on materials rather 280,000)
42% of net income (but no additional costs have to be paid)
29 years old
Construction start 09/2018
Total construction cost including land 250,000 (without state subsidy/family discount on materials rather 280,000)
42% of net income (but no additional costs have to be paid)
R
readytorumble12 Aug 2019 09:18Construction cost 350,000 euros
Construction start mid-2016, move-in mid-2017
Age at construction start 29/26
Equity 40%
Repayment 25% of net income
Construction start mid-2016, move-in mid-2017
Age at construction start 29/26
Equity 40%
Repayment 25% of net income
Tassimat schrieb:
The percentage based on the salary doesn’t say anything at all. Three times the child benefit plus the building subsidy adds up to €900 per month (around $980). If I didn’t include that, I would be paying almost 50% of the monthly net income. Bonuses are not included yet either.Then use the household income instead of the salary.