Buy land now and build in 2 years

Hello,

I can only agree with Cash & Bausparvertrag. However, only if the BSK waives a mortgage! Otherwise, you will have a problem in 2 years when the main financing is due and it comes to the ranking. Although usually the BSK goes into the subordinate rank.

Yes, it's best to pay in cash. If financing is desired, then without fixed interest rate commitment. This way you can repay the existing loan at any time with a later large loan for the house construction. Then the new bank will have no problems coming first in the land register. Otherwise, you will be locked in with the bank that financed the land for you.

May I quickly ask a question here? We have a plot of land in view that we will probably be able to pay for in cash at the end of the year. Aside from the fact that this is critical because we cannot reserve the plot - but assuming it is still available - would it be better to buy the plot and start building the house with almost no equity or to rather finance the plot as well? Best regards

The purchased property (Bodenrichtwert) later counts as equity.

Ah great. Okay! Thanks.

Thank you very much for your numerous feedback.
This week I visited a financial advisor (Dr. Klein).
He also advised me to go for financing with a variable interest rate. Also with the DSL Bank.
I should contribute €25,020 as equity. Land with notary and land transfer tax costs €135,000.
Nominal interest rate 2.2%
He also said that the interest rate does not change if I contribute more equity.
In 1 - 1.5 years (starting with the house construction) the loan can be easily paid off with the large construction loan.

What do you think about this option?