Good morning,
I hope you won’t be too hard on me. I’m new here and hope this is the right place. I keep coming back to this topic, but no one seems to be able to share good or bad experiences from real cases.
Is it possible to buy or have a house built without any personal capital?
And if yes, how do you proceed? Where can I find companies that build a house according to my wishes?
And if no, what is the best way to save money? A building savings contract? With which companies, or what other options are there?
What is rent-to-own?
I hope to get some answers here; otherwise, thank you in advance.
I hope you won’t be too hard on me. I’m new here and hope this is the right place. I keep coming back to this topic, but no one seems to be able to share good or bad experiences from real cases.
Is it possible to buy or have a house built without any personal capital?
And if yes, how do you proceed? Where can I find companies that build a house according to my wishes?
And if no, what is the best way to save money? A building savings contract? With which companies, or what other options are there?
What is rent-to-own?
I hope to get some answers here; otherwise, thank you in advance.
For a long time, an equity share of 20-30% of the capital required was considered necessary for home financing. Even today, these figures make sense if you want to avoid taking on too much risk.
For a solid full financing, you will always have to pay significant interest rate premiums, as the risk is considerably higher for the bank. Additionally, a high and stable income must be present, otherwise it will be difficult to find a bank that provides reliable financing.
I would not build or buy without equity. So, first of all, build up equity—that would be my advice. How best to do this certainly also depends on your risk willingness and financial capabilities. In my opinion, a regular savings rate is more important than how you invest the money (savings account, home savings contract, etc.).
For a solid full financing, you will always have to pay significant interest rate premiums, as the risk is considerably higher for the bank. Additionally, a high and stable income must be present, otherwise it will be difficult to find a bank that provides reliable financing.
I would not build or buy without equity. So, first of all, build up equity—that would be my advice. How best to do this certainly also depends on your risk willingness and financial capabilities. In my opinion, a regular savings rate is more important than how you invest the money (savings account, home savings contract, etc.).
A much more important question is why you have no equity. This is usually the result of spending your entire income without saving any reserves. For many, the balance is even negative, with one or sometimes multiple consumer loans (installment loans) outstanding.
There are often understandable reasons for the lack of equity, such as being a young family or having lived well. What is questionable is whether the financial burden after purchasing or building a house will be higher than the current situation. It should be considered that loan repayments are usually higher and additional costs will arise.
Ultimately, it depends on whether you can sustainably manage the future financial burden.
If the answer is "yes," then a 100% financing deal can also be obtained, even with moderate terms. If the answer is "no," you should refrain from such a project for your own interest, even if some banks would still be willing to provide the financing.
Never forget: Money problems are the number one killer of relationships and marriages.
There are often understandable reasons for the lack of equity, such as being a young family or having lived well. What is questionable is whether the financial burden after purchasing or building a house will be higher than the current situation. It should be considered that loan repayments are usually higher and additional costs will arise.
Ultimately, it depends on whether you can sustainably manage the future financial burden.
If the answer is "yes," then a 100% financing deal can also be obtained, even with moderate terms. If the answer is "no," you should refrain from such a project for your own interest, even if some banks would still be willing to provide the financing.
Never forget: Money problems are the number one killer of relationships and marriages.
T
toxicmolotof11 Jun 2015 07:59Hello "absent" Voki, *wave*, but you are right.
The first line is the most important point everything revolves around, and the costs of owning a property are usually higher than renting or similar options (unless other existing expenses like a second car, student loan, or similar are eliminated).
Going in without any equity at all (at least the additional costs should be covered) will be at least expensive, if not "interesting."
So aim for 10–15% of the total costs as your initial savings target.
The first line is the most important point everything revolves around, and the costs of owning a property are usually higher than renting or similar options (unless other existing expenses like a second car, student loan, or similar are eliminated).
Going in without any equity at all (at least the additional costs should be covered) will be at least expensive, if not "interesting."
So aim for 10–15% of the total costs as your initial savings target.
H
HilfeHilfe11 Jun 2015 08:14Hello,
I would always ask why someone has no equity. Studying and first job, living paycheck to paycheck, many vacations, and so on.
Owning property comes with responsibilities and expenses that need to be paid back. New construction is even more critical, as there can be significant additional costs. Without equity, the situation looks difficult.
I would always ask why someone has no equity. Studying and first job, living paycheck to paycheck, many vacations, and so on.
Owning property comes with responsibilities and expenses that need to be paid back. New construction is even more critical, as there can be significant additional costs. Without equity, the situation looks difficult.
I admit, earlier there was no saving, which I now regret. There was a home savings contract, but it was canceled because the money was urgently needed. Currently, there are two Riester pensions running (but only for the past 2 years). However, since I have often heard that many people buy houses without any equity, I became interested in what risks that entails.