Land purchase - financing?

Hello everyone,

the dream house project is approaching and as a first step, of course, we need a plot of land :)

We have already reserved one and now I am faced with the question of financing. We could finance the plot completely without a bank (more than half own capital, the rest borrowed from family, which should be repaid quickly).

My question: could it make sense to set aside part of the own capital and finance the plot with a loan? Or is it better to scrape everything together and buy the plot now cleanly and without a bank?

Logically, it would be cheaper for me to acquire without a bank.

My question is aimed at the fact that we want to start building in 2 years. If then we have to take out a loan from a bank for house construction financing, own capital wouldn’t be bad (even if we already had a loan running). Maybe there are some effects that I don’t see or know at the moment...

Is the plot then actually counted as equity in the house financing (and if so, to what extent)?

Thanks in advance!
Regards

The property is credited in full as equity. Therefore, it definitely makes sense to purchase it now with own funds.

It is definitely cheaper to buy now without a bank. It is considered as equity, but I don't know how it behaves if you haven't paid out your family by then. Then you would have 2 loans (1 bank, 1 private) and have to repay both. Whether the bank would simply pay off the other one, I would find out beforehand:

Thank you for the quick responses. I assume that we have paid off the land before the house construction. Also: Since I am borrowing money privately from family, I don't exactly have to tell the bank about it, do I? After all, it's a private matter. Or does one have to make this official in some way?

If you have paid it off by then, I wouldn't say anything either. Only if it hasn't been paid off could it become complicated.

hi,

well, if you can handle both installments, then I wouldn’t say anything. No mortgage is being registered or anything like that by the Ellis anyway. And equity also, as far as I know, reduces the interest. It’s not just that we evaluate – the bank evaluates "us" as well. And the lower the risk with "us", the lower the interest rates. However, one should avoid asking too many banks.

Regards Bromi