georgiefresh
2020-11-02 15:52:50
- #1
Thank you very much for all the answers!
However, I think I didn’t express exactly what it’s about. The plan is to build on the fully paid-off plot of land in seven or eight years. I just wanted to know what would happen if we wanted to build earlier (in about three years, for example). We would only want to buy the plot now because the opportunity to purchase has arisen, and then at the time of construction, we could present a plot as equity plus other saved money.
I don’t want to set the rate for the land loan too high, as money will also be needed elsewhere in the future (wedding, two used cars that will also need repairs at some point, family growth within the next few years, and especially a buffer, etc.). The current savings rate in the household is about 38%.
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As mentioned before, we are not in a hurry and therefore see no point in repaying the amount so "quickly."
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Did I understand correctly that it either has to be a variable loan (that can be repaid/rescheduled in a short period) or it has to be amortized within a fixed timeframe?
If we decide to build after three to four years and the land loan is about 50% paid off by then, would that be such a big obstacle for other banks?
Due to the rather low land price, we’re talking about an outstanding debt of around EUR 20,000 and not significantly more. By then, we might have already saved this amount additionally on the side.
And for understanding… it is important to us to build up a certain buffer of equity in the future to cover unexpected events. This buffer hardly exists at present.
However, I think I didn’t express exactly what it’s about. The plan is to build on the fully paid-off plot of land in seven or eight years. I just wanted to know what would happen if we wanted to build earlier (in about three years, for example). We would only want to buy the plot now because the opportunity to purchase has arisen, and then at the time of construction, we could present a plot as equity plus other saved money.
I don’t want to set the rate for the land loan too high, as money will also be needed elsewhere in the future (wedding, two used cars that will also need repairs at some point, family growth within the next few years, and especially a buffer, etc.). The current savings rate in the household is about 38%.
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No matter which loan. With that amount and income, please repay in 30 months. If you don’t want that, better to abandon building the house altogether, because the rate won’t get cheaper and this way you’re already used to it.
As mentioned before, we are not in a hurry and therefore see no point in repaying the amount so "quickly."
---------
Did I understand correctly that it either has to be a variable loan (that can be repaid/rescheduled in a short period) or it has to be amortized within a fixed timeframe?
If we decide to build after three to four years and the land loan is about 50% paid off by then, would that be such a big obstacle for other banks?
Due to the rather low land price, we’re talking about an outstanding debt of around EUR 20,000 and not significantly more. By then, we might have already saved this amount additionally on the side.
And for understanding… it is important to us to build up a certain buffer of equity in the future to cover unexpected events. This buffer hardly exists at present.