Financing comparison - Now it's getting serious

No, this is determined exactly based on the previous calendar year. In our case, for example, the standard land value before the start of the new development area was 60 EUR – because nothing had happened here since the 1970s. In the year when the land was newly parceled and the single-family house plots were sold, this value jumped to 220 EUR. So there is no smoothing taking place, which wouldn't make sense anyway, because otherwise the standard land value would just remain below the current market price for longer. (It already does now, just not quite as much.)

That is only partially correct, so in this case, it is certainly true. When a new development area with many sales arises, the standard land value is also adjusted accordingly. In many other cases, there are only a few land sales, so drastic adjustments will not be made. So if you suddenly have a sale at 500 €/m² in a zone with a standard land value of 220 €, you will not raise the standard land value to 500 € based on this one sale. If at all, experts and committees are cautious and will raise it slightly, and in doing so, they do not only look at that one year but also check whether there were sales in previous years and what the general market trend is.

In the end, that is the main problem with standard land values; there are many zones but usually few undeveloped sales and also partly sales where it is unclear whether they should really be considered normal business transactions. The example I mentioned occurs this year in the business area of the GA where I work; I know the buyer, and as he said, "these are crazy times." He exactly wanted that plot of land; the sellers had high demands, but since he could easily afford it financially, that price resulted. But one must already see that this is a single exceptional value.

The new building is located in Brandenburg, so they said from the beginning that MBS is responsible for the area.

Oh, that is of course something different. So it's less direct competition and more a kind of territorial protection.

At ING, anything that is not standard has no chance. Only computers rule there.

At ING, anything that is not standard has no chance. Only computers rule there.

I have had the same experience. And it doesn't matter whether you have been a customer for 10 years or not...

I am currently leaning towards MBS and a 10-year fixed interest period. After 10 years, the remaining debt should be around €300,000 and the value of the property at least double that amount.

But your fixed interest period for the land expires earlier, right? Just do five years straight away, provided MBS agrees, and then you can search with the full amount for land and house construction combined and in one ranking. Finance the few years' offset for the land variable.

At ING, anything that is not standard has no chance. Only computers rule there.

I have not had that experience. We had roughly the same situation and received the best offer from ING. This was also because ING was already in first lien position. This made the costs for registering the land charge significantly lower, since the original land charge from the property purchase was already in place. All other banks would have charged a higher interest rate for second lien position with us.