Financing comparison - Now it's getting serious

Interesting here :cool:, I mean, it's logical that the market value (=every day some fool gets up and buys at a price that's made up) can't be used. Purely hypothetically, you are stupid and ignorant and buy a plot of land at the seller's asking price of 1000€/sqm because you want to build right next to Mom (rare, as it only borders on 4 sides) and the seller knows that. But in fact, the standard land value is 200€/sqm and the realistic purchase price is 400€/sqm. Now you don't expect the bank to count the purchase price as equity, do you?

What does equal mean? All the same height. 73m long, 20m wide. MBS values e.g. 100% to BRW.

Nobody will seriously value all of that as building land for you. At most!!!!, then 40m deep. More likely only 30. And with that you have a different value. A surveyor is not allowed to calculate differently either. That's just how it is. Even if right now maybe crazy people buy differently – that is not normal, wasn’t, and will not be in the future.

No one will seriously value all of it as building land for you. At most!!!!, then 40m deep. More likely only 30. And with that you have a different value. An appraiser is not allowed to calculate differently. That's just the way it is. Even if right now maybe crazy people buy differently – that is not normal, wasn't before, and won't be in the future.

MBS definitely does that. I personally spoke with the person in charge and received an offer.

And I have NEVER seen in the listings that a building plot of, for example, 600 sqm at €365 each and 400 sqm at €100 was offered.

MBS definitely does that. I personally spoke with the person responsible and received an offer.

Unreliable. Building land means that you could also build between 60m and 73m depth. I assume, given the long strip, that the rear part has always been garden and will always be garden. Once again: The complete valuation at the building land price is unreliable and would not be done like that by a proper appraiser. Most automated systems do it this way as well. And most banks have these too (CBK as well - which results in a fair valuation).

And I have NEVER seen in listings that a building plot is offered for, for example, 600 sqm at €365 and 400 sqm at €100.

No, the plot is offered at €259/sqm. Particularly large plots are simply cheaper because the utilization of the plot is also worse. What do you think, why the small townhouse plots in sought-after areas are so expensive?

In new development areas, tiered prices are also called for oversized plots. I can even show you my last plot purchase contract myself, in which two prices were stated - building land and backyard (600 sqm building land and a little over 200 sqm backyard - which then only counts at a proportional land value).

Unreliable. Building land means that you could also build between 60m and 73m depth. I assume that the back part of this long strip has always been garden and will always be garden. Once again: the entire valuation at the building land price is unreliable and would not be done like that by a proper appraiser. Most automated systems do it this way. And most banks have these (CBK as well - resulting in a fair valuation).

No, the plot is offered at €259/sqm. Particularly large plots are simply cheaper because the utilization of the plot is also worse. Why do you think small terraced housing plots in sought-after areas are so expensive?

In new development areas, staggered prices are also called for oversized plots. I can even show you my last land purchase contract, where two prices were stated - building land and hinterland (600sqm building land and a little over 200sqm hinterland - which was then only valued at a proportional land value).

According to Boris, however, the BUILDING LAND is worth €100/sqm. And since we are converting the entire plot, why shouldn’t the whole plot be worth that completely.

Can I also counter that the MBS is familiar with the regional area and precisely for that reason has valued it that way.

The biggest problem and my mistake is that I financed the land with a 5-year fixed interest rate. It runs until 12/2022. Many banks do not want to be in second lien position, which is why many drop out.

The pine forests in Brandenburg are being bought up endlessly by Berliners. Recently, at a forced auction, a house in a Brandenburg village without public transport went for a starting bid of 30k€ and a market value of 110k€ for 300k€. And that is not a singular case.

According to Boris, however, the BUILDING LAND is worth 100 €/sqm. And since we are converting the entire plot, why shouldn't the whole plot be worth that entirely.

I can also counter? That precisely the MBS is familiar with the regional area and for that reason values it this way.

Well, you probably have some regulations on how you can develop the land. The standard land value in our area, for example, was based on a floor area ratio of 0.5. If we were allowed to build a high-rise on the land, the standardized land value would be adjusted upward using conversion coefficients (available from the expert committee). If the floor area ratio of 0.5 is not achievable, the same adjustment is made downward. The MBS approach is of course in your favor… With a remaining debt of 37k€ and 18 months of fixed interest left, I would have ING calculate the prepayment penalty for a voluntary repayment or was that refused by the bank? If ING is cooperative, factor in the costs and present the project as an almost unencumbered plot or at least with a first-lien plot that you bought below market due to good connections (if it was not municipal land at the time)… this should increase the number of possible financing banks.