Land purchase and house purchase - together or separate? Experiences

2018-09-11 20:12:58

Equity does not mean liquidity. The bank doesn't care what it is - whether it's a [Bausparvertrag], a [Tagesgeld], a savings book, or even land.

And the bank also has no problem paying you money in advance on the land. Whatever you need the money for - e.g. architectural services in advance or well builders or in case of doubt also for the new Benz.

2018-09-11 20:24:31

The bank (at least ours) does not care at all whether it pays for the land and you pay for the furniture or you pay for the land and it pays for the furniture. What matters to the bank alone is the disbursed money and, of course, what the whole thing is worth afterwards. Money tied up in the land can also be recovered, so it does not matter which part of the equity is free until then and which is bound in the land. If it is only supposed to start next year and you have the money for the land, I therefore see no reason (except the bet on rising interest rates) to pay interest on the land price for a year now and then very quickly pay commitment interest (or alternatively some kind of land charge stuff of any complexity). Aside from the fact that it unnecessarily puts you under time pressure regarding the total cost plan, where you will not get binding offers for next summer anyway.

2018-09-11 20:47:58

So we are buying the plot from the municipality. The purchase price is very good. We have about 50k in equity and probably need to borrow about 280-300k. The plot will amount to about 30-35k.

2018-09-11 20:52:16

Then there is nothing to consider. Buy the land now in cash. Plan the house, continue saving, and sign the financing at the end of Q1 2019.

I do not see the financing of only 280k€, but that is your decision.

2018-09-11 21:27:29

In reverse conclusion, nearly 1/3, maybe only 1/4 of the equity would still be liquid. Of course, it depends a bit on the absolute amount, but the advantage of paying immediately would be that you are still independent of banks.

It would also be possible to reserve the plot until the house is built. So we would still be independent of the bank.

2018-09-11 21:31:24

It always depends.

If the plot is purchased independently from the house builder, i.e. the seller and the house builder must be independent, then you always only pay the property tax on the plot. It has nothing to do with the total loan amount. As soon as the land register entry at the notary looks like the amount is for house + land loan, you will receive a notice from the tax office asking if it is not a tied deal?

Regarding the actual question: The question is rather whether you already know your financing amount? If yes and the plot is independent, then finance everything at once and consider how much equity you want to use.

If the financing amount is not yet clear and you do not know how much equity you want to invest, then finance the plot variably and calmly continue planning the house.

If the total amount is unknown: If you are sure that you are not overpaying for the plot and the bank values the plot 1:1 as equity, then the best solution is always to pay for the plot in cash. By the time construction starts, you will have partially replenished your equity again.

The plot is being sold by the municipality. We take care of the provider for the house ourselves. So they are both also separate from each other.

I still do not quite understand the advantages and disadvantages of both options.

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Land purchase and house purchase - together or separate? Experiences

nordanney

Kekse

Tx-25

Zaba12

Tx-25

Tx-25