Prefabricated house including land planned - financing

Hello,

my last topic was apparently deleted. Still, thanks again for your input. I still have a few questions. I would first have to purchase the plot of land (separate from the house construction). I will try to pay as much as possible with my own equity. I think I will have to pay part of it with a loan. Now about my garage. For the part of the land that still needs financing, do you take an independent loan or is it better to get everything from one bank, including planning and the subsequent construction? If you take the total loan amount from one bank... do you pay the full installments immediately or only when the payment to the builder is due? Would you prefer a long fixed interest rate (20/25 years or rather 10 years)?

Thanks and regards

Hubi

The question is what period of time there is between the purchase of the plot and the construction of the house. If we are talking about 3 years, you have to bridge the financing of the plot. Here I would recommend short terms so that you do not bind yourself too much to the bank.

If I remember correctly, the land and house were linked. In this case, I would rather recommend financing everything together since the house will be coming soon anyway. If possible, negotiate that you don’t have to come with a proper financing confirmation at the conclusion of the contract and only do the financing once construction has started. The first installment payments come from equity.

Unfortunately, I don’t know what you read from my post yesterday. With your monthly surplus, I would plan for a rate of 2000 or 2500€. Accordingly, after 15 years (with a 500k loan, 1% interest), there would be a residual debt of about 200k or 100k. That is absolutely no problem with your income. A longer fixed interest rate period is not worthwhile in this case. A shorter fixed interest rate period is also less favorable since the interest rates are already quite low and no one knows if we will be back at 2-3% in 10 years.

Another point yesterday was the topic of cross-border commuters. I assume you belong to that group. Not all banks (especially internet banks) like to finance cross-border commuters to Switzerland. Regional branches apparently have fewer problems with that. But the topic should definitely be clarified beforehand.

Thank you very much for your assessment! How is it with the real estate transfer tax? You buy the plot of land (through a broker) from the owner. Is it levied on the value of the land or on the final price after the house is built?

Thanks and regards

Hubi

Real estate transfer tax is due on the property and all services associated with it. This means that if there is any contract stating "the property may only be developed with Müller Bau," you are obligated to pay tax on the house as well. If you found the property yourself and are completely free to choose the construction company, you only have to pay tax on the property.

Yes, then that applies to the whole package after all.

Another point yesterday was the topic of cross-border commuters. I assume you count as one. Not all banks (especially online banks) like to finance cross-border commuters to Switzerland. Regional branches probably have fewer problems with that. The issue should definitely be clarified in advance

Yes, I have heard that too. I will definitely pay attention to it, thanks!
Just a quick calculation... would you come out significantly cheaper if you found a plot of land yourself and then also built the house (similar size/features) yourself or looked for a detached house provider yourself? I currently don’t know how much the plot costs in the offer, but I will find out next week. The price per square meter here is about 400-500 euros (I estimate).

Best regards

hubi