Property financing - variable or with a fixed term

Thank you for the feedback. How long did you finance in the interim? That’s how we envisioned it as well. Unfortunately, we are somewhat up in the air because we don’t know from when construction will be allowed due to the development work. According to the project manager of the development, 2022 might also be tight for various reasons. The owners would receive exact information in the near future.

No problem :) For us, it was 14 months, so just over a year – I would do it that way again, we could make good “special repayments” during the waiting time :) Regards

No problem :) For us, it was 14 months, so just over a year – I would do it the same way again, we were able to make good "special repayments" during the waiting time :) Regards

We currently have two offers. Unfortunately, the selection is not very large for variable financing, and many banks are reluctant to participate when areas like Rhein-Main naturally sell the land much higher than the reference value. 1st offer: 2.5% nominal interest rate + 2.5% repayment 2nd offer: 3.2% nominal interest rate + 0% repayment We are still having some difficulty deciding which offer is better if we assume that construction will start at the earliest in 12-18 months.

We are still having some difficulty deciding which offer is better if we assume that construction will begin at the earliest in 12-18 months.

With regard to liquidity, offer 2. Purely in terms of costs, offer 1. For me, only No. 1 would be an option. Since you are building later anyway, the liquidity for the small repayment must be available. It’s basically a small equity buildup over 12-18 months within the framework of the repayment.

We currently have two offers. Unfortunately, the selection is not very large for variable financing, and many banks are reluctant to participate when areas like Rhein-Main naturally sell properties much higher than the standard value.

1st offer: 2.5% nominal interest rate + 2.5% repayment
2nd offer: 3.2% nominal interest rate + 0% repayment

We are still having a hard time deciding which offer is better assuming that construction will start at the earliest in 12-18 months.

Phew, honestly I find the interest rates too high. We were recently quoted 1.5% by several banks for (almost) full financing.

We were recently quoted 1.5% by several banks for (almost) full financing.

For a variable financing? That really seems good to me. For example, when I check with the DKB (my "house bank"), it also says from 2.5% variable financing

1st offer: 2.5% nominal interest rate + 2.5% repayment 2nd offer: 3.2% nominal interest rate + 0% repayment

I find the first clearly better. Why shouldn't you start paying off the land already? It is also equity for the house financing

For a variable financing? That seems really good to me. For example, when I look at DKB (my "main bank"), it also says variable financing from 2.5% F ind 1 clearly better. Why shouldn't you start paying off the land already? It's also equity for the home financing

We also decided on the 1st option.