McEgg
2015-06-12 11:56:31
- #1
Hello,
we plan to buy an undeveloped plot of land. Here are the details:
Size: 539 m²
Price per m²: €310
Equity: ~€110,000
The development is supposed to start this year. At the moment, no one can tell me what the development will cost. It was once said to be €70/m². I have now calculated with €80/m², but I don't know how realistic that is.
So the costs would be:
Land: €167,090
Real estate transfer tax: €8,354.5 (5% RLP)
Additional purchase costs: €2,506.35 (1.5% land register, notary)
----------------------------------
~ €178,000
Development: 539 x 80 = €43,120
Total: ~ €220,000
The question now is whether to finance the total costs directly (i.e., ~€110,000), even though it is not known when the development costs will be due.
Or to first take out a loan for the purchase of the land (€68,000) and later, when the development costs are due, take out an additional loan.
What do you think? And what if you take out everything at once and the development ends up being more expensive?
we plan to buy an undeveloped plot of land. Here are the details:
Size: 539 m²
Price per m²: €310
Equity: ~€110,000
The development is supposed to start this year. At the moment, no one can tell me what the development will cost. It was once said to be €70/m². I have now calculated with €80/m², but I don't know how realistic that is.
So the costs would be:
Land: €167,090
Real estate transfer tax: €8,354.5 (5% RLP)
Additional purchase costs: €2,506.35 (1.5% land register, notary)
----------------------------------
~ €178,000
Development: 539 x 80 = €43,120
Total: ~ €220,000
The question now is whether to finance the total costs directly (i.e., ~€110,000), even though it is not known when the development costs will be due.
Or to first take out a loan for the purchase of the land (€68,000) and later, when the development costs are due, take out an additional loan.
What do you think? And what if you take out everything at once and the development ends up being more expensive?