Inject equity or finance completely?

You just have to consider that in addition to the house, there are also the kitchen, furniture, lamps, small items, etc. Depending on the situation, that can quickly add up to several tens of thousands of euros. And unlike before, the bank does not finance that with the mortgage on the house.

I don’t understand the problem. The plot does not have to be contributed 100% as equity, even if it is initially advanced 100%. You can later partially finance the plot with the mortgage. Then you have free liquidity again for lamps, furniture, and so on. You just have to arrange that with the bank.

Breakdown for the bank: Plot 75K€ House 250K€ Incidental costs 40K€ Total 365K€ less equity 50K€ Financing amount 315K€

That leaves 25K€ free again.

Hello,
I would like to join the discussion, I hope it’s not a problem.
We are in a similar situation:
Land purchase in mid-2020
Planning start for house construction from mid-2022 – planned move-in mid-2024 (rough key data)

We are currently saving the rest of the land purchase price so that we can pay it from equity by mid-2020.

Afterwards, we want to continue saving about €20,000 annually so that by move-in mid-2024 we hopefully have saved around €80,000 (these are of course just estimates).
At first planning and loan applications in mid-2022, about €40,000 had been saved.

The question to all home builders is:
Is it possible to continue saving during the consideration/construction phase from 2022 to 2024 so that we can save for the kitchen, furniture, etc.?

Experiences would be very helpful!

Hauswunsch23, if you really have and save the money as you write, then I would start the house-building project immediately, if it fits into your personal circumstances. What you are currently saving is only slightly above the level at which construction prices are generally rising.

halmi, you mean that the same house built 1 year later costs about €20,000 more? if we wait another 3 years, the house will cost about €60,000 more? isn’t there eventually an end in sight for the price increases ops:

Generally speaking, of course, not always correct, my personal experience is in the range of 3.5-5% p.a. for the last 3 years. The conditions are really at rock bottom now, KFW has also stepped up significantly. You will still continue to pay rent during that time.

What the future will really bring unfortunately remains to be seen.

Same or similar situation with me. I strongly recommend using the equity to purchase the property. 1) Property is like equity and 2) you have time and don't have to make monthly payments and 3) ranking order of the banks (Grundschuld) is extremely important