Land paid - Building with an additional loan?

Thank you very much in advance! I actually don’t know much about it, rather not at all, I pay everything immediately, I just had to take out something once for my company (a new building), but the tax advisor did that and I didn’t really take care of it. Now I am in the fortunate position to be able to repay a good 100,000 euros per year after deducting my living expenses, and this loan mentioned by Schubert sounds very interesting. This way I can go to my bank (I will build in 2015) and already have an idea of what is available, and don’t have to be told just anything.

Is there a specific reason why you want to start building only in 2015? Those who currently have money invest in real estate because interest rates are very low and it is unclear what will happen to the €uro.

There is a very important reason: I have no money! I built a company and four years ago, this year, bought a plot of land for the house (250k euros), I now have no equity or only 40k euros left! As I said, I save about 100k euros per year, so I will have 300k euros in three years, plus 100k from my parents.... and I will then take out the REST.... and I want to repay the approximately 300k I borrow quickly, not with 1000 euros/month and 25 or 30 years or however it is usually done. Therefore my question is whether it is also possible to repay something like this with 80k/year.

I have already understood that, but the property counts as equity. 250K€ + 650K€ = 900K€ total investment sum

If you were to build in 2013, you would have the property as equity worth 250K€, 100K€ saved money, and 100K€ from your parents. That makes a total of 450K€ equity. That is 50% of the total amount. Even with more equity, you will hardly get better conditions. I don’t want to persuade you to build a house now, I just find your conditions more than comfortable already. I am not a banker, but as far as I know, the best interest rate starts at a loan-to-value ratio of less than 60%, which corresponds to an equity share of > 40%.

According to an interest rate comparison for construction loans on the internet, the interest rates at 60% loan-to-value ratio and 5 years fixed interest period are at 1.76%

You pay off the 450K€ loan with an 8000€ monthly rate (= 96,000€ per year) and 1.76% interest within 5 years. That makes interest in the first year of 7,200€ or 600€ monthly converted. The question is how much you pay in cold rent now. If the interest rate is actually correct, it should already pay off for you in 2013.

hm....... I pay rent, 800 euros / month. My girlfriend also pays rent, 850 euros / month. We still have separate apartments, hence the double rent. So you actually mean I should bring the construction forward by, for example, one year? Basically, I don't care whether earlier or later, I just want to pay back fairly quickly...! Thanks, Armin

With your salary, the topic of building a house is not an issue. Special payments are of course important then. On the other hand, I would be much more interested in which profession one earns so well in? :-)