Construction financing | Is the procedure good? Your opinion and tips

@Bieber0815, there is not much more to add once you think about it, and it is probably 100% correct. Somehow, however, the whole thing still causes headaches.

I currently see it this way: if I assume that at the time of loan repayment no rent is paid anymore, also for example my 2 building savings contracts are no longer saved into, and you thus have 900 euros 1:1 left with which you can repay the financing loan, you should be able to approach the project positively, right? I am currently calculating with only one salary.

You currently see a lot of high numbers and amounts that are rather difficult to imagine.

A very good morning to all of you,
yesterday I received information from our community that the plots of land for which I am, among other things, pre-registered will be for sale in autumn 2015. So, a bit earlier than expected after all. Now it means starting to do some calculations regarding the land.

I wish you good luck. Hopefully your municipality doesn't have as clever an idea as my former municipality - they sold building plots to several interested parties in a bidding process (the price set by the municipality was the starting price in the bidding process).

Otherwise, I also wish you that the municipality roughly sticks to its schedule. I've occasionally read here that (as in your example) autumn 2015 was announced by the municipality, but the actual sale only started a year later. It's obviously annoying if you already have a loan fixed by then.

If I remember your original post correctly, you wanted to start building in 2018? Check the municipality’s sales conditions to see if there are any building time requirements (e.g. construction must begin within 12 months after purchasing the plot).

Otherwise – good luck.

Greetings f-pNo

Yes, I had another phone call today, as mentioned I am actually on the waiting list at rank 3, I believe now among 15-20 interested parties. However, since among the current land sellers there are some who want to acquire a building plot, I am now currently slipping to place 5 because they have a pre-emptive right. The plots are not the currently designated new development area but an additional building plot, so there will certainly be no auctions, or rather there have not been any in the history of the municipality. It really sounds bad if you have something like that.

As far as I am informed now, since as you correctly wrote the construction was actually supposed to start in spring 2018, construction must begin within 2 years after purchasing the land. Since I was speculating on spring 2016, it would be rather less serious if the whole thing delays a bit and you don’t have to buy as early as the end of 2015. From this point of view, it would be rather less serious for me if the whole thing drags on a bit. In a worst-case scenario, one would have to start with the basement and foundation slab by the end of 2017, should that be possible.

I have to gather all financial matters again today and see how high it could become financially. The plan was to purchase the land from equity without having to enter into financing yet. At most maybe still include a home savings contract with a low loan interest so that it is repaid by the actual construction in 2018. Currently I have 2 home savings contracts that are ready for allocation. However, I didn’t want to use the loan there if not absolutely necessary.

I am not a fan of financing through Riester, life insurance, or newly concluded building savings contracts. With Riester, there are one or two pitfalls (What happens in the event of a divorce? [wobei ich nicht gelesen habe, ob Du verheiratet bist]; unclear future taxation).

Yes, in the event of a divorce there are indeed quite some problems... but life is a risk.

Yes, there are quite some problems in the case of a divorce... but life is a risk.

Yes, seen that way, you never know what will happen. In the case of a divorce, I don’t think anyone can predict how it will go or how it will be handled in detail. But you’re not really supposed to expect that *grins*

As written, a Riester pension is out of the question for me, precisely because of the housing support account and the unclear future taxation as well as repayment during retirement! Even if the bank representatives rely on it and say there is nothing better. But there are probably reasons for that as well