Finance property in advance?

Hello everyone,

thank you very much already for the many responses. I think we could meet the construction start time frame of 2 years. The house construction can start as of 1.1.2017 (then I will have the equity from my apartment). If the land purchase takes place during 2015, it would be less than 2 years. I can then already start with the house search, planning, etc.

Regarding the loan type: Ideally, of course, I would get a first loan from a bank at today's terms and then another one in 2017 at the market interest rate at that time. Do you think that is possible? Or is it to be expected that the bank will "rip you off" with the second loan since there is effectively no competition then?

I have also seen that sometimes you can conclude loans with a disbursement date up to 2 years in the future. Or am I mistaken? If I could then also disburse it in 2 installments (without commitment interest for the 2nd installment), I would also reach my goal. Is that even possible, or only e.g. if the house and the entire planning are completed? If such a thing is even possible, must one expect a high interest surcharge?

I also cannot imagine that interest rates will rise sharply in the next 2 years. But they probably won’t get any better than today. That means if I could reduce my risk without an extra charge, I would of course do that. Therefore, variable financing would be my second choice if my above ideas were feasible.

Of course, I will also seek advice from professionals. But I do not want to show up there completely without prior knowledge so as not to be tricked.

Thanks again for your support.

Best regards, Dominik

Hello, you are talking about my proposal.

If you want to fix both as an interest rate fixation, I would rather favor a large bank. The conditions are transparent for everyone there.