Variable loan possible / sensible?

Repaying = Saving.

If the property increases in value in the next few years, this is also advantageous for the financing.

We assume that the property will increase in value. It is now for sale at last year’s price; the current price is already 20K higher, and from next year the properties in the development area are expected to increase by another 20K. Of course, no one can know what Corona will bring, but at the moment it does not look like prices will drop.
However, fully repaying 162,000K by the time of house construction is unrealistic. Would it be problematic to find a bank for the “follow-up financing” after 1-2-3 years of repayment period?

We assume that the property will increase in value. It is now for sale at last year's price, the current price is already 20K higher, and starting next year, the plots in the development area are expected to increase by another 20K. Of course, no one can know what Corona will bring, but at the moment it does not seem likely that prices will fall. However, repaying 162,000K in full before the house construction is unrealistic. Would it be problematic to find a bank for the “bridge financing” after 1-2-3 years of repayment time?

How difficult is it generally to get a variable loan? Now with regard to our financial situation and upcoming parental leave? I read here and there that not all banks participate because there are fewer guarantees. We will inform ourselves about this at the beginning of next year without delay...

Hello Janabalenciaga

I think a variable financing option is not a good idea at the moment. What would be the effective interest rate with a fixed interest period of 15 years, or even better, until the end of the loan?
OK, the EU is going crazy with its 0% interest policy. But will that help you in the coming time? The debts (of the government) are being paid off with inflation. But still, new money is needed.
And it is unlikely that loan interest rates will fall further.
A fixed interest rate for the entire term. The property is secured with that. And if house construction is next, the bank is already satisfied with the property.

Steven

The point with the variable loan is that you can terminate it at any time with one month's notice. That means, no matter which bank you then take for the house construction, you finance the costs for the house plus what is still needed for the land with that bank and pay off the "old" bank. For the new bank, it makes no difference where and whether you financed the land.


No way. If Bank X is now registered in the land register for 15 years, there is no alternative for full financing since any other bank only has subordinate security. And Bank X, which is already registered, will certainly not offer the best deal due to lack of competition. The trick with variable financing is precisely that you can terminate it quickly and then have free choice for financing the house and land. Of course, that is over a long term, but long-term financing only for the land without the house does not make sense.

You have 3 private loans with an outstanding balance of 15,000. That means you only have 15k equity left. Then the double burden of rent and the pressure to build in 2 years. Does a clause to build exist? In this situation, I still consider it "Harakiri".

You have 3 private loans with an outstanding debt of 15,000. That means you only have 15k equity left. Then the double burden of rent and the pressure to build within 2 years. Is there a clause requiring the building? In this constellation, I still consider it "Harakiri"

No, there is no building obligation on the property. I see the whole thing differently than you. Salaries will not be lower, the property can be sold if necessary (and I assume sold well. In 2016 this property still cost 120,000 – the real figures). No purchase is ever risk-free. But you can discuss that forever, but you don't have to.