For real estate financing it is worth to plan more precisely. The dream of their own four walls seems to be more achievable than ever before. Building loans are now as favorable as they have been for decades (as of October 2016). Nevertheless, caution is required with such high amounts of money. Here are three important tips, which ensure a serious purchase. There are many reasons to buy or build a property. Financial aspects such as the elimination of rental payments and the possession of a safe investment are most important. The bottom line is to provide more money for consumption with the same household income.
In the case of short-term financial bottlenecks, the house or apartment can be used as a security against the banks. The idea of security is already high in the course: As a real estate owner, one is non-terminable and also has the guarantee to be able to switch into old age on his land at will. The furnishing of an age-appropriate apartment is thus given. Last but not least, the rational Germans are also infected by emotions when deciding on the property: the good image of a real estate owner is usually associated with reliability and future orientation. The idea of the bourgeoisie has largely disappeared from the minds.
But there are still a large number of citizens who are dreaming of living alone. According to data from the statistical portal Statista in Hamburg, in 2015 almost two million Germans claimed to buy a house in the next two years. To ensure that the financing of your own four walls does not turn into a nightmare, three tips for sustainable real estate financing are listed below. Of course they represent only a selection and can only describe the complex topic.
Tip 1: Compare is it worth?
In Germany, a large number of financial institutions compete for customers. This opens up various offers for consumers with real estate financing. Even small differences in the decimal range have a significant effect: if you choose a rate that is only 0.5 percent cheaper, you can save several thousand euros in ten years. This makes it worthwhile to study the offers of banks in advance.
With the credit calculator via the web presence baufi24.de/kredit/kreditrechner/ consumers get within a few seconds a number of offers. Even an immediate application for the web presence is possible. Consumers should pay particular attention to the effective annual interest rate. In addition to the target interest rates, commissions and processing fees flow into it, which is why it has a high level of significance. Go to the calculator via this link.
In addition, even the walk to the consumer centers is worth the effort. If this is a small fee for a comprehensive consultation, this regularly proves to be an investment in the future. After all, real estate financing is about 6-digit sums, which is usually the biggest investment in life. Just before buying, home builders and those with an interest in housing should not shy away from any efforts and be comprehensively informed.
Tip 2: Do not finance a property without equity
The low interest rates of the present are so tempting that some real estate buyers could think about buying the home alone on a pump . Although consumer protectionists do not consider this path to be impossible, the nasty awakening can end at the end of the interest rate fixation. This is often the case that home ownership is still not fully financed and real estate buyers have to make use of a follow-up financing.
In the worst cases, the rates will then rise by more than double, which threatens insolvency. It is therefore advisable to make real estate financing with as much equity as possible. In any case, 20 to 30 percent of the purchase price should be on the high edge to realize the dream of home ownership. Also, the inclusion of a buffer to bridge short-term bottlenecks is useful.
Anyone who considers himself a spitcher can make a building savings contract at a young age. In this process, a state subsidy is levied as long as a certain income is not exceeded. Ideally, the building savings contract can be used to finance another 20 to 30 percent of the real estate costs, which means that the mortgage loan is 40 to 60 percent.
By the way: To finance a property, additional incidental costs must be added. This is not insignificant, because almost all financial institutions demand that these expenses be borne by the buyers themselves. These are, in concrete terms, notarial and court costs, which account for just over two percent of the purchase price. There is also a land purchase tax which varies from one state to another, and, if necessary, a brokerage commission. As a result, the equity capital required once again increases significantly.
Tip 3: Arrange flexible repayment with the bank
Life is full of uncertainties. Fatalities, illnesses and separations are the order of the day. Anyone who is hit by an unexpected event and has to pay off a property quickly gets into a bad position. The entire monthly calculation, which had previously been flawless, now threatens to lead to the loss of a house or apartment.
On the other hand, joyful circumstances can also lead to an improvement in financial resources: promotion in the job or an unexpected inheritance. In both cases, the possibility of flexible repayment is an advantage. The standard credit agreements of the financial institutions provide for unscheduled repayments. The right to a 5% or 10% reimbursement is often listed. In addition, there is a partial option to change the monthly rate. It is therefore worthwhile for consumers to pay attention to flexible conditions or to contract with a bank employee.
In practice there are hardly any differences between the fixed costs and the fixed costs. Contracts with fixed interest rates, on the other hand, often lead to a so-called prepayment penalty. It is therefore annoying because the customer must indemnify the bank in case of a premature termination of a loan. The money house thereby secures itself the interest payments, which would otherwise escape it.
Real estate financing: a complex issue that raises more questions
Three tips for a real estate financing can only illuminate the complex topic in only a few aspects. The manifoldness of the uncertainties and life situations can only be taken into account by careful consideration. Particularly young builders and residential builders should inform themselves in the beginning comprehensive, so that the further life is not burdened with high debt. Further comprehensive information is available at the website baufi24.de/immobilienfinanzierung/.
In any case, consumers should thoroughly compare the conditions of the banks before buying a property. Several thousand euros can be saved. The experts at the consumer centers provide information on all the important issues against a small fee. A minimum amount of equity should also be available, as this reduces the foreign money that one has to borrow. Housebuilders should also pay attention to flexible redemption conditions. Unexpected events can be absorbed in this way without causing any violations and the property is lost.