Buy land with cash? How to build financing?

400,000 euros at 5% annuity is a monthly rate of 1,670 euros. Everything below that is questionable or only acceptable with the proper justified exception.

Yes, I am indeed afraid that in the event of a separation the house will stand between us. I want to be somewhat secured in that regard. And no, I am absolutely not entertaining the thought of a separation! We are now 25 and 23 years old – children can wait. In my opinion, definitely another 3-5 years. My monthly net income varies between 2500 and 3500. We could also pay more than €1,000 together, that would not be an issue. Actually, I had assumed that I would be completely done with 350k. Subtracting my €60k equity, I have a loan-to-value ratio of under 90% and with an initial repayment rate of 3.5%, an interest rate of about 1.5% over 15 years, I would manage with about €1,180... ... but somehow all of this seems to be going up in smoke right now. Is there maybe some news somewhere with a ray of hope for me? But yes, I know... It should all be realistic and based on data and facts. Anything else does not help me.

... but it all seems to be blowing away into thin air somehow right now. Is there maybe anywhere some news with a ray of hope for me? But yes, I know... It should all be realistic and based on data and facts. Nothing else helps me.

I think you missed something there

I think you missed something there

No, not missed.

For you, the next step is important: to land with both feet on the ground.
Dreaming, falling in love, castles in the air are rare.

Deciding on a property is a longer process. Many components belong to it.

So first take a deep breath, sleep on it for 2-3 nights, and slowly build a framework step by step.

Do not underestimate the effort and time and act with caution.

So, I won the lottery yesterday: I now have €2,000 more available.

Joking aside - I will build. Now it just depends on with whom and how I can manage the price. My goal is actually to end up somewhere under €350,000. I have furniture so far - my father will build the kitchen. Nevertheless, I am still calculating up to €400,000.

Then the question of financing: I think I'll start right away and not pay for the plot of land in cash beforehand. The city is giving me some more time - until mid-September. By then, everything should be in place.

The companies I am negotiating with for timber frame construction and solid construction I know very well! The owners are good friends of the family and also very well known in the close surroundings. Here with us in the westernmost Münsterland, practically on the Dutch border, everyone still knows everyone.

Hello,

as others have already said, if you can pay for the property from your equity, then the stress/pressure is off when it comes to building the house. Then you can still look around in peace. Worst case is everything is too expensive, and you're stuck with the property. You could also finance 20k, for example, through a small loan and pay it back quickly. I don't know how high your savings rate is.

However, I can't shake the feeling that you have fixated on this under 350k (including the property). What will you do if it costs more? What does your house bank say about the project, up to what amount would they finance you? These are fundamental questions you should clarify beforehand. Your net fluctuates, probably due to commission payments. Every bank also calculates different amounts. 3500 net then only counts as 2200 net in the household budget calculation.

My personal tip. This "I know everyone and everyone helps everyone." I also come from a rural area. The problem with that is, everything that costs nothing, costs nothing. That means you rely on acquaintances, might have to somehow pay them after all, and coordinate it yourself. And you can forget about any guarantees/warranties.