Does the land value count as equity? Appointment at the main bank

Hello,

I am new to the forum, have been a silent reader until now. Now I have a few questions. We, my wife 38, my two sons 10 and 6 years old and I 35 years old could now build on my parents-in-law's property. They would give us 400 m2 as a gift, currently the m2 costs 300-400€ here, does the property value count 100% as equity? We have an appointment at the house bank next week, what should I prepare for? We still have about 20,000€ in reserves which I would like to keep for tight spots. We currently have an income of 3800€ net, would that be enough for a normal house of about 150 m2? We dream of a small townhouse, without much fuss. Is it achievable?
Thank you very much for your help.

Best regards, Family Fischer

So the details are already somewhat roughly summarized and 300-400 euros make a 25% to 33% difference, depending on the perspective.

Assume that the bank considers the property as equity according to the respective land value, possibly a part as garden land. But this is individual depending on the location of the property. Your equity should be noted with the comment that it is reserved for [Küche, Möbel und Überraschungen] and should not be taken into account.

How about the gift-related incidental costs ([Vermessung, Teilung, Notar, Gericht])? And definitely get advice: keyword gift tax, chain gift, and such.

Roughly it looks like you would finance the house including ancillary construction costs. The house size and your income should not make this impossible, provided approximately 1,500 euros installment plus additional costs are manageable for you. (Assumption 150x2000 + 50,000 construction ancillary costs, 5% annuity).

The division will cost money and how far is it then to the street? Is it then [zweite Reihe]? Of course, this must first be approved and a long driveway and the long connections are not free either.

There used to be a house in the second row, which was demolished a few years ago. However, connections are still available. We would share the costs for the subdivision. Assume about €2000 each. It is difficult to give an exact price for land prices per m2. With us, allocation is sometimes done through a bidding process. We have an appointment with our bank on 19.12, how can I best prepare? I have already tried all kinds of calculators, according to which it looks very promising. Many thanks for the help. Regards Manuel

There used to be a house in the second row, which was demolished a few years ago. However, connections are still available. We would share the costs for the subdivision. Assume about €2000 each. It is difficult to give an exact price per m2 for land prices. In our area, allocation is sometimes done by bidding procedures. We have an appointment with our bank on 19.12, how can I best prepare? I have already tried all calculators, according to which it should look very good. Many thanks for the help. Regards, Manuel

Well, some value will be set just because of the gift. Otherwise, start from the lower value. It doesn’t really matter except that it affects the conditions by 0.1 more or less. First talk to the house bank and later ask intermediaries. Are you allowed to build there again? I’m not familiar with this, but just because a house once stood there...

I would first go to the building authority before inquiring about financing. The laid pipes and a house that once stood there are no reason for the authority... it is also possible that the existing pipes are no longer up to date and need to be replaced. Apart from that: utility costs still need to be taken into account. Good luck [emoji106]