Paying off personal loan + creditworthiness

Good morning,

I have owned a plot of land (700sqm) for 2 months and am increasingly dealing with the topic of house construction. I have some general questions regarding the financial aspect.

Can I count the purchase price of the plot of land (60,000€) as equity?
Will the value of the plot be reassessed and perhaps even adjusted upwards?

What costs, besides the purchase price of the house, can be included in the construction financing (kitchen, landscaping, earthworks)?
Can I use a possible construction financing to repay a private loan (outstanding balance 35,000€)?

I am very much looking forward to your answers.

Can I count the purchase price of the plot (60,000€) as equity?

If it is paid, yes. If a loan is being repaid for it, no.

Will the value of the plot be reviewed again and maybe even adjusted upwards?

In 10 or 20 years it will be worth more. If you want to wait that long, then yes.

Which costs can be included in the construction financing besides the purchase price of the house (kitchen, landscaping, earthworks)?

Everything that is directly related to the house and its construction and the facilities, except furniture... except kitchen units.

Can I use a possible construction financing to pay off a private loan (outstanding balance 35,000€)?

No. There may be the occasional exception, whether it is the situation or the bank, but I don’t see that here.

Since I went through this myself just a few days ago, I can confirm that. For a paid plot of land, the purchase price counts (depending on the bank, including or excluding incidental purchase costs), regardless of how much it is "actually worth." For an assessment of the market value, the purchase must be at least 5 years ago, with some banks requiring even longer.

Everything that is directly related to the house and its structure and the system, except furniture... except kitchen unit.

That depends on the bank or even the responsible person on site. We can also submit invoices for furniture and kitchen and finance them accordingly with the home loan in order to only have to use equity at the end.

A higher value of the property would only be justified by a verifiable purchase within the family and would always be a case-by-case decision. If the installment loan for the property has been completed and this property is free of mortgage, it could be redeemed through a construction financing. One would have to run it through with an experienced intermediary.

Can I count the purchase price of the plot (€60,000) as equity?

If bought roughly at market value, yes.

Is the value of the plot checked again and maybe even adjusted upwards?

Checked yes (at least roughly), adjusted upwards rather not, since there is no reason for that.

Which costs can be included in the construction financing besides the purchase price of the house (kitchen, outdoor facilities, earthworks)?

Can I use a possible construction financing to pay off a private loan (outstanding balance €35,000)?

Anything you want, as long as it fits into the loan collateral. BUT: Why do you have a €35,000 private loan and buy the plot with equity?