The dream of living in one's own property remains unbroken despite rising real estate prices. If you now want to realize this dream, many questions arise. What to consider? What can you afford? Who assists with the realization? If you want to calculate a construction financing in advance, you have to think of many things. With comprehensive knowledge of what to consider in financial planning, can better assess the risk and clarify what is even within the scope of their own possibilities before looking for real estate.
Calculate construction financing: it is the monthly burden that counts
Ultimately, construction financing is about what monthly burden for interest and principal repayments you can afford over 20 years or longer. Without dramatically changing his lifestyle. Vacations should still be possible as well as purchases for everyday life – from cars to washing machines. The education of children are to be considered as well as the formation of reserves for old age.
These costs should be examined more closely in order to determine the financing requirements before, during and after the purchase:
- The repayment of the mortgage loan (amortization)
- The cost of borrowing money (interest)
- The running costs of the property (operating costs) such as heating, electricity, water, property tax, waste disposal, house insurance – but also maintenance costs. The older a property gets, the more likely it is that investments will have to be made in the heating system, installations, roof or windows. That is why it is advisable to save a monthly reserve (maintenance reserve). 200,- per month should already be. With owner-occupied apartments such a reserve is mostly regulated over the so-called house money.
- The costs around the real estate purchase (like real estate agent, land register entry, land transfer tax and other additional costs), which cannot be paid with a construction financing loan.
Calculate construction financing – no more than 40 percent of income
40 is an important threshold for the calculation. The monthly financing costs to be paid (interest and repayment) should not exceed 40 percent of the net household income. This is the only way to ensure that you have enough financial leeway for a "normal" life in the future – from leisure activities to acquisition costs for mobility, quality of life and education.
Of course this number 40 is only an indication. This value may already be too much for families with children, while it could be even higher for childless high earners. But for an initial calculation, this 40% should be the guideline value.
In addition one should berits over a longer period before the purchase decision a cash book to lead. This way you can determine the actual – not just the perceived – monthly expenses. From groceries to movie tickets, from clubs to vacation trips. restaurant visit and concert tickets. And of course rent and expenses for mobility.
Calculate construction financing – the use of equity capital
The equity capital, which one can bring into the financing, beinflusst the interest rate for the upcoming construction financing. Who z. B. If a customer is able to invest 40 percent in the purchase of a property or a new building, the bank will reward him with a particularly favorable interest rate. It should be noted that the ancillary purchase costs (broker, land transfer tax, notary costs) must also be paid with the equity capital. These expenses cannot be financed with a construction financing loan.
These incidental purchase expenses include:
1. Real estate transfer tax (depending on the state between 3.5 and 6.5 percent depending on the purchase amount
2. Brokerage costs – depending on the state and whether they are borne between buyer and seller proportionally.
3. Notary and land registry fees, which in Hamburg z. B. 1.5 percent.
With an immobility purchase price of 500.000 euros, these additional costs can amount to up to 60.make up 000 euros. Not to forget: Costs for the furnishings (furniture, kitchen, bathroom) also have to be financed out of one's own pocket.
Calculate construction financing – long contract terms are more expensive, but safer
When doing financial planning, one should not count on the most favorable interest rate offered. Although loans are by far the cheapest if you choose the lowest possible term of a loan. Loans with a 5-year term currently cost less than 1 percent interest. For terms over 20 years then already the double interest rate becomes due. Interest rates are currently particularly favorable. And this has been the case for almost 10 years now. This begs the question: how much longer?
It is almost certain that interest rates will rise again at some point over the required financing period until the loan is repaid in full. In the late 2000s, the average interest rate was around 5 percent.
If you secure these current low interest rates only for 5 years and also do not have a high repayment (z. B. only 1 percent) agreed, at the end of the 5-year term, the loan amount will have reduced only minimally. Although the monthly charges were extremely low, but the residual debt is therefore very high. And this residual debt can be serviced with follow-up financing. This residual debt after the expiry of an extremely favorable loan with a short term and too low repayment, can lead to the fact that the follow-up financing – and thus the monthly charges – turn out to be very high and possibly break the available monthly budget. That's why caution is always advised.
Therefore: The lower the interest rate is, the more you should put into the repayment. This does not reduce the monthly burden, but helps immensely to be debt-free again much faster. And the faster you are debt-free, the more money you can save – especially on interest payments. Therefore, when planning your finances, it is best to calculate with a 20-year term and a repayment rate of 4 percent.
Calculate construction financing – it's easier with the help of an expert
If one has calculated at the end of his financial status and knows , what monthly expenses are possible for the financing, it is in addition to the property search also about the selection of the geeineten construction financing offer. However, one should contact at least two to three providers and not rely exclusively on the house bank. A bank-independent online financing should also be included in any case. Thus you can compare not only the offers but also the consulting quality. And the latter is particularly important. Because an advantageous, safe and lasting building financing concept consists mostly of many components – classical loans, interest-subsidized energy saving measures, building savings contracts and regional promotion pots. Only if these are perfectly combined and additionally pays attention to flexible loan modules, the best, because on the personal possibilities tailor-made construction financing stands in the end. For your secure financial future.
Secure funding for home construction and renovation now. This is how you can finance construction measures particularly favorably.