ᐅ Building a House Without Personal Equity: How to Approach It?

Created on: 11 Jun 2015 02:08
D
dream
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.
V
Voki1
11 Jun 2015 11:15
The main risk is taking on more than you can handle financially and not being able to cover the necessary costs. This becomes more likely the less you are able to save from your income. That, in turn, depends on the amount of income and your personal responsibilities. If you have a good income and can limit your expenses, then it can work out. The latter is more difficult than one might think and should be practiced over a medium-term period.
V
Voki1
11 Jun 2015 11:16
toxicmolotow schrieb:
Hello "absent" Voki, *wave*

"take it easier"
"Write whenever you feel like it"
X
xycrazy
11 Jun 2015 13:06
Buying or building without equity only makes sense with a high income. In all other cases, you will likely end up dealing with the bailiff sooner or later...
F
Frank78
11 Jun 2015 16:28
If you have always spent your entire income so far, building a house will mean a significant change in your lifestyle and living standards, since the rent you save alone will never cover the mortgage payment – not to mention the much higher additional costs.

How likely do you think it is that you will suddenly become frugal overnight?

I would recommend practicing a more frugal lifestyle first during a risk-free extended savings phase...
B
Bieber0815
11 Jun 2015 19:08
It should also be noted that even with 100% financing, you still need to set aside an additional amount in the five-figure range for costs such as property transfer tax, notary and other fees, moving expenses, furniture, and incidentals. The exact amount depends on the individual case but is always significantly greater than zero.
G
Goldi09111
14 Jun 2015 23:18
Is it possible to include these additional costs in the financing as well?