My girlfriend and I have been considering buying a house.
We visited the bank to review our options and it seems that we are close (not there yet) to having enough to pay the 20% down payment for a 890k home (which is still under construction).
Amongst the topics we discussed, the bank advisor told us that there is the possibility to buy a plot of land and to use it as collateral for the 20% down payment for construction. In addition, the notary fees would be less as you’d pay them initially on the land only. This would result in us paying considerably less on these fees.
It kind of sounds too good to be true. Why would not every person buy land and construct shortly after? Is there perhaps a delay that prevents you to construct? Would you pay additional fees once you start construction?
In order to pay for the plot, we’d like to empty the 2nd pillars as a priority, but wonder if it is accepted to use it for buying land. I tried looking online for more information but it mainly states that the 2nd may only be used for buying property… So I gave the forum here a shot.
I thank all of you reading this in advance!