Process of land financing

  • Erstellt am 2020-07-22 21:15:28

alexxenia4816

2020-07-22 21:15:28
  • #1
Hello,

we plan to start a new construction within the next 2-3 years. In our city, plots are scarce and by chance I found today an optimal building plot which costs €91/sqm and is fully developed. We would definitely have to finance it fully, as there is no significant equity available.
My main question is:
Do we finance the plot now through Bank A and then for the later house construction also rely on Bank A
OR is it better to finance the entire amount X directly (basically plot and new construction)? But then the question arises, how does that work since we really want to do the new construction only in 2-3 years.
It is clear that in the latter case we would first obtain offers from manufacturers or inquire how much is feasible in terms of financing.

Which way is the most sensible and why?
Best regards
 

HilfeHilfe

2020-07-22 22:20:31
  • #2
Only the land is financed, possibly with 2-3 fixed terms or variable. If there is no equity now, what does the rest of the financial situation look like? Can you afford to build a house?
 

Osnabruecker

2020-07-23 06:40:49
  • #3
A comparable topic was already discussed here in the forum last week:
Title:
First the plot of land, then the house years later?
 

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