Pay for the land in cash or finance it?

klblb, I don’t believe that the solution you found with your bank can be considered generally binding.

I do not claim that. It is a solution that has worked perfectly for me and many other forum members (and most likely beyond that). The problem or question was always very similar to the one described. Of course, I am not saying that it works for everyone and I am also not saying that it is the only solution.

Is what you want to buy a single plot of land among many already developed ones or as part of a new development area?

Old plot between many others still with a house on it, which is only fit for demolition. The market value is probably above the standard land value, although even that is hard to assess because sales are rare in that neighborhood.

A refinancing during construction costs a lot of money. And for "Eigenleistung" most banks require receipts. If you already know that a lot of Eigenleistung will be involved, it is worth reconsidering to make the total financing consistent now and only use part of the equity capital for the land.