Hello!
We are planning to buy a property. Unfortunately, we have no idea where to start. Maybe you could give us some advice here.
We don’t have much equity—well, a little, but that is meant to remain as a reserve.
What we want: a single-family house of at least 160 m² (1722 sq ft) plus a garage, on a plot of land as large as possible, with a basement. Due to cost considerations, it will probably be a prefabricated house. We’re not sure what type exactly. We also don’t know yet how high the personal contribution for interior finishing will be.
At the moment, we can afford a monthly payment of 700 EUR. Starting in 2012, we expect to be able to pay 800 EUR more per month. So it would make sense to have a repayment option allowing extra payments, so we can pay more after about 2.5 years. I have already done some rough calculations. After 20 years, we would have to pay off 360,000 EUR. Of course, many things can change over 20 years, so we expect to have repaid around 300,000 EUR by then.
Ideally, we don’t want to spend more than 250,000 EUR. That should really be the maximum amount. This includes all costs, such as the complete interior fit-out, notary fees, and so on.
How realistic is this? On TV, they often show it is possible—and sometimes for even less than 200,000 EUR.
I hope this information is enough to help me further.
Regards,
Dennis
We are planning to buy a property. Unfortunately, we have no idea where to start. Maybe you could give us some advice here.
We don’t have much equity—well, a little, but that is meant to remain as a reserve.
What we want: a single-family house of at least 160 m² (1722 sq ft) plus a garage, on a plot of land as large as possible, with a basement. Due to cost considerations, it will probably be a prefabricated house. We’re not sure what type exactly. We also don’t know yet how high the personal contribution for interior finishing will be.
At the moment, we can afford a monthly payment of 700 EUR. Starting in 2012, we expect to be able to pay 800 EUR more per month. So it would make sense to have a repayment option allowing extra payments, so we can pay more after about 2.5 years. I have already done some rough calculations. After 20 years, we would have to pay off 360,000 EUR. Of course, many things can change over 20 years, so we expect to have repaid around 300,000 EUR by then.
Ideally, we don’t want to spend more than 250,000 EUR. That should really be the maximum amount. This includes all costs, such as the complete interior fit-out, notary fees, and so on.
How realistic is this? On TV, they often show it is possible—and sometimes for even less than 200,000 EUR.
I hope this information is enough to help me further.
Regards,
Dennis
6
6Richtige4 May 2010 17:00Hello Dennis,
Unfortunately, €700 per month won’t be enough. Use the time to save up—around €20,000 to €50,000 in equity is usually needed for that amount. Then you can get back in touch in 2012. If you want to pay off €300,000 over 20 years, you’ll end up repaying about €600,000 to the bank, which is roughly €2,500 per month.
Unfortunately, €700 per month won’t be enough. Use the time to save up—around €20,000 to €50,000 in equity is usually needed for that amount. Then you can get back in touch in 2012. If you want to pay off €300,000 over 20 years, you’ll end up repaying about €600,000 to the bank, which is roughly €2,500 per month.
6
6Richtige4 May 2010 17:22I already understand your point, but the fact is that after 20 years you still have 15 to 20 years left to repay. With low interest rates and, for example, 1% repayment, you end up paying the bank two to three times the original loan amount 😉
As an example, after 10 years you will have repaid at most 5 to 10% of the original amount, meaning 90 to 95% is still outstanding.
As an example, after 10 years you will have repaid at most 5 to 10% of the original amount, meaning 90 to 95% is still outstanding.