Financing suitable building land separately before house construction

And the bank then knows how to exploit its privileges because you have no other choice. Negotiations about interest rates or terms will not be possible because, as mentioned, the bank exploits your bottleneck. One thing must always be clear; the bank does not grant you a loan because it feels pity for you or wants something good for you. The bank simply wants to make money!

So it really only makes sense if the property is in my possession before I build, so debt-free?

But until then, I will have hardly any liquid equity saved up and would have to finance the entire house, but would a bank allow that?

If you finance with the same bank where you also have the property, it can see how much of the property has already been paid off.

So it only really makes sense if the property is in my possession before I build, so debt-free?

But until then I will have saved almost no liquid equity and would have to finance the entire house, but would a bank approve that?

if you have fully financed the land for building the house, you have great equity - the land. All banks will accept that. If instead of financing the land now you would save the same amount, your equity at the start of the construction project would also go into the land later (because it is the first major expense).

If the land is a bargain in terms of price/performance, you definitely want to build there (or you are sure it could even appreciate in value), then buy the land and finance it over very few years (because building the house only after financing, reasons have been mentioned). Keep in mind that you still have to pay rent, and even with a 1000€/month rate you only get "just" 12,000€/year together. So if you want to finance 40,000€, you won’t get away with less than about 4 years this way. It’s probably better if you just keep saving the money.

How is it possible not to reach zero with a €40k financing and four years of repayment? :D The plot costs €50k including notary and land acquisition and a small buffer. €15k put in, you need €35k and full repayment (if you find someone who finances it for you) at 1.5% until 03/30/2018 - then you're done.

We also bought our property in advance with a variable interest rate. According to our financial advisor, changing banks is then no problem. The interest rate is then possibly somewhat higher than with a fixed term.