Equity for land or house - How to best utilize it?

Thanks in advance for all the answers. I hope the property will not lose value. It is located 40 kilometers outside Frankfurt and prices here increase year after year.

A third possibility I have not mentioned so far because we are not yet sure if we want to accept this offer. We would also have the option of taking out a family loan of 80,000 euros interest-free. If the property later counts as equity, such a loan would have the advantage that it is used for the property acquisition, thus requiring less of our own liquid equity and then later for the house loan still having solid equity and property.

A fourth possibility would be to enter the construction phase immediately upon purchase and then possibly accept that a complete move-in upon completion of the house is not feasible. A move is only possible for us in September 2019 since there is currently about 100 kilometers between the house and the property.

: I see it the same way regarding interest/construction costs. As for the interest, I do not stress about it.

You will have enough equity at the start of construction according to your calculation or savings rate. That is enough for the invoices you need without the involvement of the [GU] or for your own work.

It is located 40 kilometers from Frankfurt and prices are rising here year after year.

Buy!!!

The chance that your equity will grow on its own until the house is built is very high. It certainly won't do that in a savings account.

Use equity. Possibly a private loan later for the house.