Financing - Building plot variable loan

If you want variable, then go variable. Screw the interest rate. With a 0.1% difference, we're talking about €6.5 per month for a short time. Who cares about that with an investment of half a million or more. I will never understand these discussions about a few euros when money is being wasted on construction on the other hand. That just had to be said. Every day at work this discussion happens about every little point with the interest rates, and even more money is thrown away in construction.

We even had a variable 2% in 2019. Only purchase costs from equity, land fully financed. But it was okay for us. We have now paid this alongside the rent for 1.5 years, high enough to get a feel for the house installment ;) - so we have already paid down a bit.

Remember that you shouldn't necessarily commit yourselves long-term for the house construction. Otherwise, the bank will have little interest in accommodating you with the interest rate if you finance the house through them. I would only agree to an annuity loan if either the interest rate for the house is guaranteed to be good (compared to the current market) or if you can simply cancel it again (which is rather unlikely).

If you want variable, then go variable. Screw the interest rate. A difference of 0.1% means €6.50 per month for a short time. Who cares about that with an investment of half a million or more. I will never understand these discussions about a few euros when money is wasted on construction on the other hand. I just had to get that off my chest. Every day at work this discussion about every point regarding interest rates and even more money gets thrown away on the construction.

I completely agree with you... More important is the following annuity loan! I just wanted to generally gather your experiences and opinions about it. Especially regarding the Allianz topic, I was curious whether that can be trustworthy...

Remember that you should not necessarily commit yourself to long-term financing for the house construction. Otherwise, the bank will have little interest in accommodating you with the interest rate if you finance the house with them. I would only agree to an annuity loan if either the interest rate for the house is guaranteed to be good (compared to the current market) or if you can simply cancel it again (which is rather unlikely).

Allianz said that they are strong in long-term loan interest rates. Therefore, we were "advised" for 30 years on this. And the interest rate of 1.15% is, in my opinion, "OK". My wish would be to get under 1%... But I don't know if that is realistic.. Dr. Klein previously offered a rate for 25 years at a staggering 1.27 / 1.3 % nominal/effective interest rate! (Although there's still some room for maneuver here) Of course, I would prefer to be under 1%! But then taking out a loan for 10 years, where the interest rate would probably be around 0.7%, would be too risky for us because after those 10 years the whole thing could blow up in our faces.. But that would now be a thread topic of its own that I will probably start :)

I was playing around with the calculator on the Allianz website earlier and don't really have the feeling that they are cheap. But my financing is not fixed yet either, so it's hard to judge. The big question for you is whether the current interest rate is really locked in when the financing is extended to the house. I would check that carefully to avoid any nasty surprises in the end.

Between 30 and 10 years, there are also good compromises like 15 years (which is currently becoming the new standard) and don't have such a high surcharge. Most people can live well with 100 or 150 TE debt after 15 years. The interest rate risk is not that high there, and through the saved interest, a few more euros can be put into repayment over 15 years.