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
B
Buchweizen12 Aug 2019 09:46Purchase date: Summer 2018
Purchase price: 250,000 €
Equity: 0% (the available equity was used for renovation, the kitchen, outdoor landscaping, garage doors, etc. In addition, we kept a buffer of more than 10,000 € for "just in case," so we wouldn’t have to take out another loan immediately)
Repayment: 25% of our combined net income, full repayment, mortgage-free in 25 years
If he were to cover the costs alone, it would be over 50% of his net income; for me, accordingly, a bit less.
I wouldn’t want to cover the installment plus additional costs and reserves on my own—it would require significant restrictions—but on my own, I also wouldn’t want to own a house.
Purchase price: 250,000 €
Equity: 0% (the available equity was used for renovation, the kitchen, outdoor landscaping, garage doors, etc. In addition, we kept a buffer of more than 10,000 € for "just in case," so we wouldn’t have to take out another loan immediately)
Repayment: 25% of our combined net income, full repayment, mortgage-free in 25 years
If he were to cover the costs alone, it would be over 50% of his net income; for me, accordingly, a bit less.
I wouldn’t want to cover the installment plus additional costs and reserves on my own—it would require significant restrictions—but on my own, I also wouldn’t want to own a house.