Land price = complete equity. Finance yes/no?

The follow-up financing for 3 years as a forward loan with corresponding interest surcharges? Besides, he would then be tied to the bank. In my opinion, not a good idea.

Yes, your points are justified.

Here, one has to decide how much security the financing should include. Perhaps you can also repay the €50,000 within the 5 years through appropriate special repayments or a redemption from equity at the end of the fixed interest period.

Thank you very much for the many responses, I always fluctuate with you - for and against it ;)

I have to correct myself, it is about the loan amount of 25,000€ since that is the minimum amount for a construction loan. I had a consultation with Interhyp on this a few months ago. The effective annual interest rate is about 2.8%. The interest rate definitely has to be variable, because only then can the loan be replaced by another all at once, and you don’t get into a bad negotiating position with the bank.

But my gut says that it should actually work without a loan.

Hello Aloadihoa, I would buy without a loan, since you have good savings potential and will have the 20000 filled again in a year. Nevertheless, your statements indicate that you feel more comfortable when this safety cushion of 20000 is present. I can understand that. Therefore, take the loan: safety always costs a little more, but if you are a safety person ;), then it is worth it. I know that :)

Option 4: Take out a loan of €100K to secure low interest rates. Who knows what the situation will be in a year when the mortgage is due.

Option 4: Take out a loan of 100,000€ to secure low interest rates. Who knows what the situation will be like in a year when the mortgage is due.

That is actually a clever idea, because if you had to take out a loan at 4% interest next year, it would be cheaper to use your own capital then. This is a security strategy that can make sense if you want security.

But a security is needed for the loan, e.g. [Grundschuld]. Either you already know the required financing structure today or you have to restructure the [Grundschuld] next year at a cost (notary and possibly bank)...