The higher the personal contribution to the construction of the house, the lower the assembly or installation costs, among other things. Personnel costs. The costs saved in this way are listed under the term Muscle mortgage summarized. You lower the loan costs and can favor a good interest rate.

In the best case only the material costs have to be paid. Up to 50.000 euro can save owners, if they build their house themselves. In addition, the self-creation is not difficult. A multiplicity of offerers adjusted to this trend and took up so-called kit houses to their Portfolio. If you want to build a house yourself, play it safe with these self-build-friendly systems.

## Calculate muscle mortgage: This is how much your own contribution is worth

Example: Your painter estimates 2000 euros in labor costs for the work in your house. You decide to do the painting work yourself and only pay for the material costs. This makes the value of your own contribution 2000 euros.

The calculation that many home sellers make is simple: 20 percent personal contribution demand most construction financiers – costs a house for example 180.000 euros, so the bank usually requires 36.000 Euro equity. If you don’t have that, you can theoretically replace a part or even the whole amount with your own contribution. Because in financing, own contributions count as equity just like existing cash.

In most cases, after all, the bank recognizes Up to 15 percent of the total construction cost as personal contribution an. Instead of 36.000 euros, the builder only has to pay 9.Prove 000 euros of equity capital, because the muscle mortgage serves as equity capital.

## Muscle mortgage prove: This is how it works!

High risks want to avoid each bank, therefore own contributions are accepted only in a certain range. A detailed proof is obligatory in any case. To ensure that your bank recognizes the services rendered as equity, we recommend an exact list of all planned services. You should also include a plausible justification and calculation of the individual items in this list.

Your statement should definitely contain the following points:

• Type of personal contribution
• material costs
• Estimated labor costs
• Savings through your own contribution
• Name of the person performing the work
• Professional qualification of the person

## Muscle mortgage: Own contribution realistically estimate

With the calculation of the own contribution many owners overestimate themselves. To this the offerers contribute, who want to bring the contract under roof and lock. If it becomes apparent during the contract discussions that the equity capital is too low or not available at all, then the builder is presented with "own contribution models" that do not take into account either the technical or time possibilities. "The offer is designed ‘to fit’, so that the overall financing is not in danger," warns Andreas Raschke of the Bauherren-Schutzbund.

### How high the share of own work should be

Who would like to build and thus own contributions take over, should weigh well, which he can create and which not. 1.000 hours of own work for a one-year construction period means that an average of 25 hours must be worked each week. If only the weekend and vacation are available, it is hardly to be afforded. The Bauherrenschutzbund therefore recommends planning no more than five, at most ten percent of the total costs as personal contribution.

It is important to have the credits for the desired personal contributions itemized separately according to labor and material costs. Because often the credit for own work by the construction company is less than hoped for, among other things because a company can usually buy materials more cheaply than a builder can. You should therefore carefully calculate in advance whether your own efforts are really worthwhile.

The recommendable proportion of personal contributions varies depending on the level of craftsmanship:

Less experienced craftsmen:

• Painting and wallpapering
• Floor coverings (e.g. laying laminate)
• Tile work
• Various drywall components

Experienced do-it-yourselfers:

• Shell construction
• Plastering
• Possibly help with plumbing and electrical installations

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## Build yourself with a kit house

With the self build it concerns to settle as much as possible even and without the employment of craftsmen. Especially builders who have little experience in building houses can also use a so-called kit house for this purpose. Previous knowledge or experiences as a do-it-yourselfer are not compellingly necessary. However, this is very much dependent on how comprehensive the respective offer is. It is therefore particularly important to take a close look at the services offered by a house kit provider and to opt for a well thought-out system. In the meantime a multiplicity of house building offerers adjusted itself Germany far to this trend and took up appropriate offers to their assortment. House construction kits not only contain the right building materials needed to build the house yourself, but also usually include a complete service package. Thus house building offerers offer support in many cases with the property search, the financing or with the planning of the house.

With a kit house, builders have the opportunity to realize their dream of a house according to their requirements. Whether as an extravagant bungalow, a detached or semi-detached house or as a city villa – personal design wishes are taken into account during the planning phase. In addition, there are also no limits to the imagination when it comes to the equipment. Thus, both architectural ideas and environmental aspects are given enough space. In addition to extras such as conservatories and dormers, climate-friendly energy sources such as heat pumps and energy sources can also be integrated into the kit house.

### Caution before too scarcely calculated offers

The calculation, which many house offerers open, is simple: 20 per cent own contribution require most building financiers – costs a house for example 180.000 euros, the bank usually requires 36 percent.000 Euro equity capital. If you don’t have this, you can theoretically replace part or even the entire amount with your own work. Because when it comes to financing, personal contributions count just as much as existing cash as equity capital.

In most cases, the bank recognizes up to 15 percent of the total construction costs as personal contribution. Instead of 36.000 Euro the builder must therefore only 9.You will need to prove that you have 000 Euros of equity capital in order to get a loan from the bank. A tempting idea, especially for young families with low assets.

But when it comes to calculating their own work, many builders overestimate themselves. This is helped by the providers who want to get the deal wrapped up. "If it becomes apparent during the contract discussions that the equity capital is too small or not available at all, then "own work models" are presented to the builder, which take neither the technical nor the time possibilities into account. "The offer is made "suitable", so that the total financing is not in danger", warns Andreas Raschke of the Bauherren-Schutzbund.

### Build a house yourself and save effectively

Whether the own employment is worthwhile, one should calculate before exactly.

Compared to a turnkey home, builders can save up to 50.Save 000 euros of construction costs if they build the house themselves from the beginning. Quality losses must not be feared thereby. If the self-construction is organized and cared for, you can use the own work portions as additional own capital funds. The monthly interest charges for the financing will therefore be significantly lower. Given these savings, many families can invest in additional comforts such as a sauna or a high-quality kitchen – luxuries they would not otherwise have been able to afford.