Financing of land and house

Have you really thought this through with the 2000 sqm? We have 710 and have now planned the house on that. That leaves a good 500 sqm of garden. That is a plot of 44 x 12 m. Just for mowing the lawn I will need an hour... :) With 1500 sqm of garden you will need sheep or a biiiiig lawnmower :D Now to your financial problem: I would personally ALWAYS believe the independent advisor. Get a second and third opinion from other consultants. Bankers always have directives from their boss and quotas. Have them calculate what is cheaper for you, not for the bank. Example from the family: a banker still signs a building savings contract with a 90-year-old with a term of 10 years. I could puke at something like that.

ab 3013 wieder 900€ Gehalt

I think that is supposed to mean 2013 :D

Hello, the matter with the 2000sqm is well considered. It is potential building land for 2 more houses (approved preliminary building inquiry). That’s why we are buying everything to possibly sell it later. It is just very cheap to get right now. My feeling also tells me that the Independent is right. Anyone else have an idea?

My feeling also tells me that the Independent is right. Anyone else have an idea?

But it’s not always like that, so go to a second and third person. Our guy then additionally negotiated awesome conditions that we never got offered by the same banks.

Funny enough, the house bank just called me again. Their colleague apparently told us nonsense about not using equity. She inquired about the terms of the independent provider and said she would consult again. Maybe they will make us a new offer. By the way, the one from the independent provider is for the property at 3.16% effective interest with a 10-year fixed interest rate and 5% possible special repayment.

What do you think, good or still improvable?

By the way, the offer from Unabhängigen is for the property at 3.16% effective interest with a 10-year fixed interest period and 5% possible special repayment.

What do you think about it, good or still improvable?

It depends on your planning. If you manage to pay off the amount completely within the 10 years, the offer is probably good. Although I think there's still room for improvement.

We have 3.4% on 200,000 fixed for 20 years .. also 5% special repayment. But also a high equity share.
I currently think 2.8-3.0 should also be possible for you. But I'm not a professional... that's just my gut feeling.

All variants have advantages and disadvantages. And there are various pitfalls lurking!

Since the current total equity (50,000) is not sufficient, the land purchase (68,000 + incidentals) must be financed. The lower the loan, the higher the loan interest rate will be, or there will hardly be any bank willing to finance the loan. For many banks, the minimum loan amount is 50,000 euros.

A longer fixed interest period for land financing is very dangerous. When the remaining financing is due in 2 years, this can only be done with the same bank due to the order of priority in the land register. You will have saved yourself a lot of work ;-) and can only sign the loan contract with the bank that also financed the land. That would be a one hundred percent gag. The only solution can be to choose a variable loan or a loan with a one- or two-year fixed interest period. When the house construction begins, you are free again and not tied down.

When building a house, it makes sense to hold back liquidity. It is very unpleasant and stressful when you need money for a baseboard and have to go to the bank to ask them to please pay out a few hundred euros again. As a builder, you have no patience for such games. If more equity is saved up in the next two years, that could be the liquidity reserve; otherwise, I recommend holding some back from the current equity.

It would be important to now design a financing concept and set up a complete financing plan. And then choose the financier who is suitable for the entire project. That saves, for example, costs for the mortgage registration in the future. In doing so, one should definitely explain one's own thoughts to the financier. That way, they know that they have to make an effort again in two years and that you have an option to finance everything with another financier as well.