Buy land with cash? How to build financing?

  • Erstellt am 2016-07-26 14:29:33

BAUerMartin

2016-07-27 12:34:15
  • #1
Building obligation exists: I must have started within 3 years.

What do you say about equity? I often read that many finance completely without equity?!

My better half, whom I could/will/should definitely marry sooner or later ( ), will basically move in as a "tenant," but even if I were alone, €1,000 per month would be quite feasible and I would also get the green light.
 

Peanuts74

2016-07-27 12:45:54
  • #2
With €1000 per month, you probably won't finance €350,000. According to the loan calculator, with an interest rate of 2.2% (due to low equity) and a 40!!! year term (until around retirement), a payment of €1100 would be due. So if €1000 is already the limit, it will be difficult. Nevertheless, you have to consider whether it might be somewhat cheaper otherwise (e.g. with more own funds or smaller) and whether there is even a risk that the land will actually be taken away from you again if it takes 4 or 5 years.
 

MarcWen

2016-07-27 12:51:06
  • #3


One should say goodbye to such considerations as quickly as possible. A plot/property is something different than new pants or a car.
 

Peanuts74

2016-07-27 12:57:04
  • #4
That is true, nevertheless a plot of land, if bought at a "normal" local market price, can almost ALWAYS be sold again with little loss. And if you have fallen in love with the plot, it is indeed hard to forget it again. Of course, you shouldn't have had the fixed idea for just 2 weeks and it shouldn't be the first plot you see.
 

oleda222

2016-07-27 13:00:30
  • #5
You have around TEUR 400 investment with about 10% equity, which is not much, but it can be sufficient with a good income. I would clarify the family situation before you start the project. TEUR 40 equity is not much to condemn your partner to lifelong rent, do you have plans for children? For me, building a house is a family project. But that may be different for everyone.
 

Peanuts74

2016-07-27 13:32:51
  • #6
I also wonder what the partner and future wife says about it. Is it only your wish and she wants to avoid any commitments as much as possible, or do you already have in mind that a joint project would be harder to divide in the event of a divorce?
 

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