Living in a big city ceases to be a symbol of many people’s dreams. Especially now, when apartment prices have been the highest for several years, Sunday coffee drunk on the terrace of your own home seems to be more tempting.
The construction process begins with finding the right land on which our property will stand. Check how to get a loan to buy a construction plot and start construction.
Purchase of a construction plot
What are the average prices of construction plots in Poland
The price of a construction plot depends really on the size and location of the land. In large cities or on their outskirts prices will be much higher than in the case of small villages away from large agglomerations.
What types of plots can we buy?
Before applying for a loan, you should check what kind of plot you want to buy. Currently, these are plots:
construction – intended primarily for the construction of single-family houses and for services not harmful to the environment,
industrial – for other services that can be burdensome for the environment,
recreational – plots for summer houses,
Habitats – a specific type of plots, intended for building outbuildings related to the role, but also for houses after obtaining a building permit,
agricultural – designated for cultivation (you can “ungrind” such a plot, but this process is easier if the agricultural plot is worse),
forest – the least profitable acquisitions, usually they can not be used or sold profitably.
What to look for when buying a plot?
Before you plan to buy a plot, get acquainted with the spatial development plan. Such a move will allow you to check: what kind of building is allowed on a given plot, the maximum height of future buildings and the type of roof allowed.
Additionally, you should verify that the plot you are about to buy is a construction plot. To do this, all you need is:
Download the spatial development plan from the website of the town or commune office.
Check on the plan what the plot is intended for.
Look for detailed information assigned to the symbol of the area where our plot is located.
What is the nature of the loan for the purchase of a construction plot?
The loan for the purchase of a construction plot is a similar product as the loan for the purchase of a house or flat. Therefore, when applying for a loan for the purchase of a plot of land, similar requirements must be met as for those applying for a housing loan.
Some banks (e.g. Credit Agricole) have in their offer loans that can be used to buy plots of any purpose: construction, construction with the construction of a house started or recreation.
A loan for a construction plot is most often a long-term commitment and, like a housing loan, it is granted in the Polish currency. Therefore, a person who applies for a loan to buy a plot of land must have good credit standing and have the required own contribution. A loan for the purchase of a plot of land may be granted up to 50% of the property value.
What types of plots can we finance with a bank loan?
We can finance all types of plots with the exception of agricultural property. Then, regardless of whether we are a natural person or an individual farmer, we will most likely not receive a loan.
Good to know
An exception may be agricultural plots, which constitute an access road to a public road including the basic real estate.
What loan should I choose to buy a construction plot?
The cost of buying a construction plot can be financed equally with a mortgage and a cash loan. The only question is what loan for a construction plot will be most favorable for us? Most people choose a mortgage much more often because it is a cheaper option.
However, if time plays a key role for us and we cannot afford to go through a long credit procedure, and in addition, we do not have enough own contribution, then you can opt for a cash loan, which should be enough to cover the costs associated with the purchase of the plot.
What loan for the purchase of a construction plot?
Regardless of whether you decide on a cash or mortgage loan, you should read the latest credit ranking and compare all available offers.
Mortgage loan for a construction plot
When deciding on a mortgage for the purchase of a plot, we must remember that, as with any mortgage, a mortgage is required.
In the case of a loan for an apartment or a house, the mortgage is a residential property, but if we decide to take a mortgage for a plot, we should present another property that will be used as collateral for the loan.