How to finance best - buy land earlier

Hello everyone.

We want to build soon.

Currently, there are still community-owned plots for sale, which in our opinion are quite nice and affordable (53 € / m² fully developed).

However, we want to build this year or early next year. How could the plot be financed in advance? We cannot do the actual building financing yet because we do not know exactly how much the house will cost.

What would you recommend?

Hello Michael,

pay for the land in cash, this then corresponds to about 10% of the construction costs, you should have at least that much equity. If you already had to finance this small amount, I would hold off on building for the time being.

Would that be counted as equity in the same way as cash for a later financing??

One more question about the land purchase: I assume that the broker fees do not apply for the municipal land. What about the notary? Is that required there? Real estate transfer tax is presumably always due.

Calculate 5% of the purchase price for notary and tax. The land is considered as equity and there will be no problems later when choosing the bank and the priority order in the land register.