Fundamental questions about financing

Forward?? He has been drawing for 5 years now and in 5 years a Forward??

That doesn’t work at all, then he might as well accept the bad offer for 20 years since that’s cheaper.

[Bausparvertrag]? What interest rate can be allocated in 5 years? 2.45%, while he only gets 0.1% credit interest on the savings capital but pays 1% interest??

How does it look? Should it be built immediately?

Yes, it should start in summer/late summer.
A home savings contract or forward loan would probably not be an option for 5 years.
But first, we have to wait and see if the bank agrees to short terms and, if so, at what interest rate.
They want to make a lot of money with long terms and high interest rates.

But first, let's wait and see if the bank plays along with short terms and if so, at what interest rate.

So now directly again, after my first hint didn’t get through: Begging for 10 years only makes sense if the interest rate is significantly better. You can also cancel the 20-year loan after 10 years. It’s just an interest rate gamble, which can also backfire. If 10 years is not significantly better, it’s better to take the security, make special repayments, and after 10 years decide based on the then prevailing market interest rate, rather than rushing to commit to 10 years now at all costs. Then you must necessarily refinance after 10 years.

For 5 years, I consider the interest rate risk manageable *Crystal ball mode*

What if you didn't need a loan because you have the money? What would the Sparkasse say then?

The banks calculate their margin (simplified) over 10 years.

With long terms, they do not earn more because they also have to refinance at higher costs. A profit margin is added to the issued interest rate for the first 10 years (simplified).

Forward and [Bausparvertrag] is absolute nonsense, that is clarified, it remains to be considered whether you actually want to risk signing for 5 years, or to be able to choose this bank under these conditions. I only fear that even then the bank will charge an interest rate that is capped from above and lives off the living!

You will have to swallow some toad, and it remains to be considered whether this plot of land is worth it, and if there is nothing comparable, then again it must be considered whether it is better to pay the 0.4-0.5% more over 20 years and thus not be counted among the losers after 5 years - at least interest-wise - the next time.

I do not know the situation on site, but if there are few new development areas, then the compromise might be the higher interest payment over 20 years (but secured) and the new building would justify that, since there may not be many new buildings or buildings of that construction year in the town, and that in turn should be reflected in the property's value retention, to say nothing of the fact that your living value was higher because you could build where you wanted, and that must have a reason that cannot always be weighed 1:1 in money (interest).

What would it actually be like if you didn’t need a loan because you have the money? What would the Sparkasse say then?

That was also part of my questions and it is to be feared that this consumer/customer then cannot buy or acquire it: Not nice, but legitimate!