Consumer credit as equity

Wasn't there someone earlier who called this "externally financed equity"?!

Thank you first of all for the many responses. Unfortunately, we only came across the topic of building late through the children. As a result, of course, we haven't saved that much. I haven't spoken to the banks yet about what a 100% financing entails, but I think it is more expensive. Loans are currently available at 3%. It would of course also have to run, for example, through my mom. Moreover, I'm not sure if 100% is enough; it would rather be 110% or 120%.

I don't want to just dismiss the topic like that. It can't be that everything depends on this equity. Other families also build and have significantly less available. But I haven't spoken to the bank yet. But I'm just afraid they'll laugh at me with this equity.

Do you already have a plot of land in sight? An already existing plot of land makes it easier for banks and home construction companies. It is also considered as equity, which is why the purchase of a plot of land represents a ("the") first step for the topic of house construction.

Do you already have a plot in sight? An already existing plot makes it easier for the banks and house building companies. It is also considered equity, which is why the purchase of a plot represents a first step ("the") in the topic of house building.

We are now developing a local model. This amounts to about 225,000. The rest would be for the house including incidental costs. I don't have the plot but have it in sight.

225000 just for the land, do I understand correctly? And the same amount would then remain for the house? Phew ...

225000 just for the land, do I understand that correctly? And the same amount would then remain for the house?
Phew ...

Alternative without a local model 480000 for the land but we have an offer for a turnkey timber frame house 180k minus electrical, floors, doors and tiles. I'll do that myself. Another 20k can be saved.