Paying off personal loan + creditworthiness

Currently have a case in our circle of acquaintances, plot approx. 800m2, will still be divided for 2dhh. The purchase price was below market value, the bank lbs would count the current market value and the already made repayments as capital. But it results in a 100% financing and at least 3% repayment.

Currently we have a case within our circle of acquaintances, a plot of about 800m2, which will still be divided for 2 semi-detached houses. The purchase price was below market value, the bank lbs would consider the current market value and the repayments already made as capital.

However, it comes down to 100% financing and at least 3% repayment

The purchase price is always the market value. Apart from a sale within the family, I can't think of any sale and market value.

So the market value is always the selling price?

No, it is not.

The market value is the estimated amount for which a property asset should be exchanged on the valuation date between a willing seller and a willing buyer, after an appropriate marketing period, in a transaction conducted under normal business conditions.

So if you sell below market value, it is not the market value as you claimed, but the selling price.

The purchase price is always the market value

I find that incomprehensible. In our case, for example, purchased in early 2017 based on an appraisal from December 2015. The land reference value at that time was €120. Shortly after the purchase, the figures for 2016 from the appraisal committee arrived, and lo and behold: the land reference value had meanwhile risen to €165. At the beginning of 2018 (figures for 2017) it was already €205 (yes, we were incredibly lucky).

So what is the "market value" if I go to the bank in January 2019? And what does it look like if I wait until the values for 2018 are known? And how would a potential buyer be positioned who buys the property from me today? Same property, same bank, almost double the "value"?!

Sure, some banks probably handle it the way you describe. But that is more likely the result of strange internal guidelines than an inevitable consequence of the actual market situation.

A purchase from the municipality also usually does not occur at market value, otherwise 20 (200) bidders would not be fighting over the building land and the municipality would have to decide by social points or lottery.

Nevertheless, two financing brokers and the state bank clearly refused, no chance to use the current value as equity, at the earliest after 5 years.

Somehow logical, they do not want to artificially reduce the loan-to-value ratio through miraculous money creation.

Actually illogical, because if one had not bought building land with the equity, but perhaps shares, which one sells the next day for double, then the banks obviously have no problem with that. Or even sells the property at market value and buys the neighboring plot with the proceeds...

Why do you have T€ 35 private loan and buy the land with equity?

It is nowhere stated that the land was paid for with equity.