Buy property only with equity or finance partially?

Hello,

after reading a lot, I now also have a question or rather need a few opinions/experiences.

We have basically found our dream plot. Great location, 550sqm, but insanely expensive (250,000 euros).
We could completely finance the plot alone with our own capital. The additional costs that would come on top would be covered by my parents. After that, though, we would be more or less "broke".
Does it make sense to really spend all our money? I have now read that a bank not being listed in the land register would not be so clever for the upcoming house financing.

Thanks and best regards

With my knowledge today, I would pay it entirely with equity. Back then, we paid part of it with a variable loan to remain flexible in choosing banks – that’s not a problem. What only annoys me in hindsight are the unnecessary costs for registering the first mortgage (for the variable loan), which then has to be rewritten when the overall financing is due. That’s immediately a four-digit sum again, the notary is happy about a generous donation for 10 minutes of work, and the homebuilder gets absolutely nothing from it... At the time, it was important to me not to invest all my equity (€500k) in the land. The reason was a vague bad feeling about putting all the money out before the house is built. But in the end, that doesn’t matter because the paid land is recognized by the bank as equity.

When do you want to build? Do you have a chance to build up some equity in the meantime, which can then be used for the "Kleingedöns"?

When do you want to build? Do you have a chance to build up some equity in the meantime, which can then be used for the "small stuff"?

If we buy the land now, we would try to build "as quickly as possible." But of course, we would first have a bit of time to calmly look for a suitable partner. We earn about 6000 net, so there is some left at the end of the month, and my parents could also support us financially at the end of the year; until then they have invested money securely.

If we buy the property now, we would already try to build as "quickly as possible." But of course, we would first have a bit of time to calmly look for a suitable partner. We earn about 6000 net, so there is still something left at the end of the month, and my parents would also be able to financially support us again at the end of the year; by then, they will have invested money securely.

That's great. You won't start building before a year. That means you can roughly save another €30,000. Only you know exactly what you can save – but with that salary, a lot is possible... you also managed the €250,000 :)

That's great. You won't start building before a year from now. That means you can roughly save another €30,000. Only you know exactly what you can save – but with that salary, quite a bit is possible… you also managed the €250,000 :)

Thank you! I hope everything works out
And that we might actually start before a year.
We qualify for the KFW loan (I was on parental leave for a long time and didn't earn anything) and want to take the €220,000 at 0.4%.