Treatment of property during financing

Hello,

we are planning to buy a plot of land soon. We can currently pay for the plot in cash and therefore want to do so (interest payments will only be necessary from the start of construction in 2012). I just wanted to be sure here, will the plot of land later be regarded as equity in the financing of the house construction???

That means, if the house INCLUDING the plot of land (so the entire project) costs 300,000 EUR and we have 100,000 EUR equity, does it then matter to the bank whether I have 100,000 EUR equity or only 60,000 EUR equity but a plot of land worth 40,000 EUR?

Thanks for your help :)

Regards

I am not an expert, but as far as I know, the property is fully considered as equity. The only thing that can happen is that the property loses or gains value. But in general, properties tend to increase in value, which can only be an advantage for you.

Best regards, Florian