Second option is to build it by “self-help”. Self-help does not necessarily mean that you yourself have to work on the construction from dawn to dusk for a period of one to two years. It means that you have friends around who are willing to help you and thus save a crown for some work and a lot of money for marketing large construction firms.
While you are building, until you finish drawing money, you repay the bank only interest on the money that the bank reimbursed on the basis of invoices from the vendor.
How does it work?
The prerequisite is that you have selected the land, the project of your wished house and building permits. At first, the price of the future house is determined, from which you will then gradually draw for works. Individual fluxes of finance are divided into so-called tranches. The first tranche is usually provided by 500 000 CZK in order to make the base and part of the construction site. Then the appraiser comes and judges the current state of the house and sends the bank the difference between the drawn down amount and the actual value of the building. It is still the same way again and again until you have your house built, and no longer need additional finance. In this moment the drawing is stopped and you start to repay your debt to the bank. Most allow not to draw up to 20% of the mortgage amount.
While you are still building, until you finish drawing money, you repay the bank only interest on the money which the bank sent for building.
You do not need to give any invoice to the bank, so theoretically, and by many clients also practically, it is possible to use the money on household items, which the bank will not pay you in the supply construction.