This is a very individual decision. Think about what is important to you: for example, flexibility, issues of inflation, modernization, neighborhood, location … After all, for most people, buying or building a property is the largest financial investment in life. This must be well thought out and prepared. The financing strategy in particular plays an important role here. As a rule of thumb, you should have at least 20 to 30 percent of your own capital saved up.
How to save for your own four walls in the first place?
There is no magic formula here. Overnight or time deposit, a fund savings plan – it is best to ask for advice. Above all, it's important to start early so that the property is debt-free before you retire. Experts predict an average savings period of about ten years and a repayment period of about 15 years. There are many setting wheels for you here, especially in today's low interest rate environment. A suitable form of savings is also a Riester home savings contract. The state would like to support your old-age provision with the subsidy. In principle, everyone who is compulsorily insured under the statutory pension scheme is entitled to the Riester subsidy, d. h. Employees, but also trainees. The state allowances (basic allowance: 154 euros per year) increase the amount saved. Career starters under the age of 25 receive 200 euros as a one-time payment in the first year. You can deduct payments into your Riester home savings contract as special expenses for tax purposes – up to a maximum of 2.100 euros per year. Good for families: Non-working spouses with their own contract also receive the subsidy. For children born since 2008, you receive an annual allowance of 300 euros. You can easily conclude such a contract with us.
Can I also use capital-forming benefits?
If you receive capital-forming benefits (VL) from your employer, you can also use them to save for your own home and put them into a building savings contract. Good to know: If your income is below a certain limit, you also benefit from the employee savings allowance as a bonus on the VL. For unmarried persons, the limit is z. B. at 17.900 euros – then you receive up to 43 euros savings allowance (9 percent) per year.
What other cash injections should future homeowners be aware of??
If the real estate purchase is already concrete, you can increase your equity capital by loans and subsidies. One of the major lenders is KfW. Your savings bank will advise you which of the programs is right for you and apply for the loan or grant directly for you. The German Federal Office of Economics and Export Control (BAFA), the federal states, churches and municipalities also help builders and renovators, whether with grants or interest-free loans (for addresses and further information, see the "Recommended links" box).
Where else can I get financial aid?
Some employers offer low-interest loans. Parents or grandparents can also help you with gifts, loans or a mortgage. The "muscle mortgage", i.e. personal contributions when building or renovating, also saves money.
Advice is simple!
With us, you receive sound advice from experts who take a close look at your personal situation. Construction financing is a matter for specialists – in fact, it is the primary secure foundation that must support you. Calculate with us!