Many people wish to own a house. But the right way to do this is often quite unclear. There are many providers who want to earn on the house purchase, but not everything is also good for the buyer. We will try to bring a little light into the darkness here. Certainly, the subject is complex and cannot be presented in all details. But it is already possible to show the basic approaches.
Home financing with equity, home savings and a mortgage
A good house financing is always the one that does not strain the buyer excessively and also spares from unnecessary costs. The classical financing, with which certainly the fewest buyers got themselves into trouble, is based on 3 pillars.
1/3 equity
1/3 Building savings
1/3 mortgage.
Raising the equity requires the possibility and also the will to save money for the purchase of the house. Out of necessity, one sets the savings phase at 5-7 years. Let's assume a house price of EUR 300.00,-, so in 7 years EUR 100 have to be paid off.000 must be saved. This would then have to be done with monthly savings installments in the amount of about EUR 1100. It makes sense to save this equity in a building savings contract. After 7 years, both the equity capital and the low-interest building society loan are then available. The building saving loan is repaid then with the same rate, which was saved so far, in likewise 7 years. In addition, there is the mortgage in the amount of EUR 100 in our example.000,-. This mortgage is then calculated with approx. EUR 500,- repaid in the next 17 years. This redemption rate is taken from the saved rent. Certainly, most house builders pay beforehand a higher rent than the mentioned EUR 500,-. However, one should not forget that owning a home leads to significantly higher ancillary costs than in the case of a rented apartment.
The advantage of financing is obvious. Over the entire period of saving and the 1. The monthly burden remains the same during the repayment phase. Already after 7 years the real estate is paid to 2/3 and the load goes back a clearly smaller amount. This results in the possibility to invest in the old-age provision. Another great advantage of this financing is that the current very low interest rate level is secured by the building savings contract also for the building savings loan. In view of the expected interest rate increases in the medium-term future, it would even make sense to increase the bauspar share.
House financing with own capital and mortgage
Home builders who have already saved and want to buy property in the near future, no longer have time to save up a building savings contract. At this point, the "pre-financed building savings contracts" is not recommended. Either one has a building savings contract ready for allocation bespart, or one this neglected. Then the financing would consist of 1/3 equity and 2/3 mortgage. All in all, this option will require higher repayments than the one mentioned above. Problematic is the usually 10-year fixed interest rate. In 10 years one could get exactly into an interest rate high and then it becomes really expensive. There remains the possibility to fix the interest for 10 or 15 years and to set the repayment so high that the property is then also paid for. This would then lead to really high monthly charges. This solution is not as elegant as the one with building savings, but in many cases it is feasible. An alternative would be to pay a part of the saved capital "in one sum" into a building savings contract. In this case, the waiting period until the allotment is shortened considerably, sometimes to less than 2 years.
House financing without equity, only with mortgage
This is financing "brutal" and exactly in this area most unhappy homeowners are found and also most foreclosures are preceded by such models. A house without saving is possible, but one can only advise against it. Everything that has been said before is reinforced here. The problems are pre-programmed, therefore we do not want to design any models in this area.
Saving is for Chinese a matter of course, what a mortgage is, that know now most also. But building savings? There are certainly still large information deficits. Therefore, we want to shed some light on this area. Building savings is a very German invention, but has become popular in recent years in other countries, because it is a very safe way to own a home. The building savings consists of 2 phases. First the savings phase. During this period, usually starting from 7 years, the saver puts his money at the disposal of the building society at a relatively low interest rate. Today, however, this interest rate is not so low, since there are hardly any interest rates for savings offered on the capital market. After completion of the savings phase, the building savings contract is ready for allocation. This means nothing else than that the saver gets his savings back and in addition a very low-interest building society loan in the same amount. The interest rate of the building society loan is fixed already at the beginning of the saving phase. The saver secures today's very low interest rates for his loan in 7 years (or even later).
Building savings is especially worthwhile for future homeowners, but also for all those who want to invest their money safely and at a good interest rate, even if they do not plan to build. If the low-interest building society loan is waived from the outset, then the building society saver naturally receives higher interest rates. The higher returns can be achieved if government subsidies can be brought in as well.
If you're an employee eligible for a housing subsidy and/or employee savings allowance and are willing to invest your money for at least seven years, you can earn top returns. However, the prerequisite is that the income is low enough to receive government subsidies. As a yield saver, you must also not only choose a tariff with a high interest rate on credit balances, but also agree on a suitable building society sum, so that this effect can be realized. All government subsidies can be included in a building savings contract, from the employee savings allowance, to the housing subsidy/building savings allowance and the employer's capital-forming benefits, to the Riester subsidy. Whether all this makes sense in individual cases must be clarified in the course of an intensive consultation.