Construction financing with or without a family member

Good evening and hello everyone.

I need help with a somewhat more complex financing. The background is as follows: I have found a residential property with land for purchase. The property is 8 years old and has approximately 100m2 of living space. The purchase price is 300,000 euros.

Since the property is initially intended to be used as a second home or vacation home, the following options arise.

1. Option: Purchase by me alone. As collateral, I have 90,000€ in cash and a paid-off residential property worth about 650,000 euros. For the purchase of the property, I want to use a maximum of 50,000€ in cash assets. Furthermore, my parents want to invest 200,000€ in about 6 months. Accordingly, a partial repayment should be possible.

2. Option: One parent “gifts” a building savings contract worth 100,000€ + 50,000€ equity. Collateral as described above.

3. Option: Purchase together with my sister. Above-mentioned collateral + another residential property worth about 800,000€.

4. Option: Option 2 + Option 3

Purchase from private seller without a broker, the entire financing should be arranged relatively quickly :).

Thank you very much for your help and have a nice Sunday!

Thank you very much for your help and have a nice Sunday!

What is your specific question? What does "security" mean to you? What do you count as equity and what as collateral? What does "holiday home" mean – for rental or commercial use?

A brief general answer to an unasked question: If you offer your paid-off house as collateral, it is almost certainly completely irrelevant which option you choose. If your parents want to repay part of the loan (Option 1) in six months, you will not get a special repayment option, but will simply finance this part variably and repayable at any time.

What is your specific question? What does "security" mean to you? What do you use as equity and what as security? What does "vacation home" mean - for rental or commercial purposes?

Brief general answer to an unasked question: If you offer your paid-off house as security, it is almost certainly irrelevant which option you choose. If your parents want to repay part of the loan (option 1) in six months, you will not get a special repayment option but simply finance this part on a variable basis and repayable at any time.

Thank you very much for your answer.

True, I should ask the specific question. The question is which product one should inquire about directly at the bank?

By security, I mean my or our paid-off owner-occupied homes.

Vacation home or also second residence for own use with the option of rental as a side business.

The question is: who do you want to have listed in the land register? Alone, with the parents, with the sister, or all together? And who should primarily use it?

The question is: who do you want to have listed in the land register? Alone, with the parents, with the sister, or all together? And who is supposed to use it primarily?

Basically, it doesn't really matter. Due to the age of my parents, I would exclude them from the land register for tax reasons. The benefit should be shared equally among everyone.

Then buy it in equal shares, possibly with a gift from the parents to the children to optimize inheritance tax. In any case, I would not pay off a holiday apartment so that my sister can then vacation there cheaply.