How to divide equity between apartment purchase when a house purchase is upcoming?

Hello everyone,

for several reasons we are currently buying an apartment that costs us 310k€ in total.
We have been planning to buy a building plot for a long time and in the next 6 months a development plan for a building area could finally become legally binding and we could get a plot.
In that case, the plot would probably cost us 350k€ including all incidental costs for the house construction and the house construction itself 550k€. That’s about the expenses. We have around 350k€ that we want to invest in total in the purchase and construction. And we are now wondering how to best allocate the equity in order to repay both projects with a full repayment loan.
For the total repayment, I am currently thinking of 2500€/month and when we have moved into the house, about 900€ cold rent will come into the account from the apartment.
I am really not a financing expert and wonder how to best distribute the equity to be able to keep the apartment and finance the house with the larger loan at a good interest rate.
So far, the financing advisors from the banks have not been helpful; they all want requirements from me and don’t want to put in any work themselves.
How would you approach this?

Best regards
Michael

I am really not a financing expert and wonder how to best allocate the equity

In the end, it doesn't matter, since the loan amounts always add up to the same total.

in order to be able to keep the apartment and finance the house with the larger loan at a good interest rate.

Let's just approach this from a business perspective. The apartment will be rented out. To minimize the tax burden, the apartment must generate losses or the taxable surplus must be as low as possible. ==> Thus, linking both properties. Full financing including the incidental purchase costs of the apartment. Repayment max. 1%. Full equity into the owner-occupied property and put the maximum possible repayment power there. Financing at one and the same bank so that the house can also collateralize for the apartment.

Off topic: The return on the apartment is really amazing. Approx. 3.4% rental yield before interest, management costs and taxes. In the end, only a 1 remains before the decimal point. Why are you investing in the apartment?

Unload the debts on the property so that the income is "protected" from taxes. I can't say anything about the return, but 1,xx something also seems very very low to me

Maybe he rents within the family and therefore does not want to go to the maximum possible? But be careful, there are also some limits from a tax perspective. At least 2/3 of the usual local rent or something like that?