Finance the purchase of land yourself in advance or wait?

  • Erstellt am 2018-01-06 10:48:22

t.hilo

2018-01-06 10:48:22
  • #1
Hello everyone...

Unfortunately, I have not found any suitable answers here in the forum for our specific case. Therefore, here is my concern:

We (mom, dad, child) have applied for a plot of land in a new development area in our community and have now been granted it.

In the letter of confirmation, a confirmation was requested from us and a notary appointment (organized by the community) was announced for the end of March/beginning of April.

Since we are not yet far enough along with the planning of the house to be able to set up financing for it, we would like to purchase the plot independently of a bank loan. However, for this we would use up our own budget and, in addition, take out a loan from the family. We expect from this, on the one hand, that we will be more independent from the bank financing the house later on, i.e., not tied to the bank that finances the plot. On the other hand, this means we are not under pressure to start as soon as possible and can decide and plan more relaxed.

I have three questions regarding the whole matter:

1. In your opinion, is it sensible to buy the plot in advance with our own resources? Or would a joint financing (i.e., including the house construction etc.) be more sensible and cheaper?

2. As mentioned, we still need a private loan of about €30,000 (depending on the final purchase price). Can this amount then be included in the financing later in order to pay it back directly to the family? According to our first discussion at our house bank, this would not be a problem.

3. How much money do we ultimately have to pay to whom after the notary appointment? We would like to know this in order to see what amount we would still need to bridge with a private loan.
The price per square meter in our case is €200. The plot is 517 sqm.
However, we receive a discount of €3,000 (per child). This results in a purchase price of €100,400.
In addition, there is the property transfer tax of 5% in Baden-Württemberg. When is this tax paid to whom?
Notary and court costs?
Development costs? The letter from the community explains that the price already includes the costs for the street, street lighting, water supply, and wastewater contribution. However, other items like further connections (electricity, telephone) are not included and must be borne by the buyer, along with contractual and property transfer costs.

I hope this is not too much at once :-)
 

Alex85

2018-01-06 11:29:48
  • #2


If you can afford it, yes. Borrowed capital is not free.



Yes, that is possible.



The notary reports the contract conclusion directly to the tax office immediately after notarization. When the tax assessment arrives depends on their speed. It can already be there after 2 weeks.



The notary will bill his service immediately.
The change in the land register triggers costs at the land registry office. Relatively quickly for the priority notice of conveyance, possibly a bit later for the actual conveyance.

If you want to mortgage the property later for the house loan, notary and land register costs will occur again to register the land charge.



You pay for your own house connections only when they have actually been installed.
 

t.hilo

2018-01-06 12:02:08
  • #3
Ok great, can you also roughly tell me how high the individual items are or what their amounts depend on?

Kaufpreis
We will transfer 100,400.00 € to the municipality after (how long after?) the notary appointment.

Grunderwerbsteuer (5 % of the purchase price in BW):
We will transfer 5,020.00 € to the tax office when the tax assessment notice arrives.

Notar und Gerichtskosten by invoice to the notary? How high are they? I would like to know that quite precisely in order to keep the private loan as low as possible.

That would be "everything" for the land purchase initially, right?
The further notary and land registry fees only arise with the financing of the remainder and will also be paid then.
 

Nordlys

2018-01-06 12:03:11
  • #4
There are good notary fee calculators online whose results are very close to reality. Use them. The house connection costs later usually amount to around 7000 euros. (Sewage, fresh water, electricity, gas, telephone). If you forgo gas due to an air-water heat pump heating system, 1500 euros less.
 

dcave17

2018-01-06 12:10:37
  • #5
Hello Thilo,
we just had a similar situation and took out a variable loan with the house bank for the land. Interest rate 1%, fixed interest period 24 months, repayable in full and free of charge at any time.

This way we can later combine the larger loan for the house with the one for the land.
It is also important to remain flexible here so that you do not have a first-ranking registered land charge when the house loan is needed later, which would increase (for security calculations) the interest rate for the house loan.
 

t.hilo

2018-01-06 12:26:38
  • #6
Sewage and fresh water are probably already included for us. We don't need gas because we plan to use an air-water heat pump...
 

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