Beginnings of a possible property | Questions about the building savings contract

Since it is clearly stated that the property would be purchased immediately if suitable, one cannot seriously recommend terminating the building savings contract and investing in some securities.

Otherwise, see if a switch to a suitable tariff is possible.
If that is not the case, the balance can be accessed at short notice and you have had 1% interest until then. Currently, you won't find that for an essentially risk-free investment anywhere.

Keep investing and take advantage of the interest on the balance. If you find a property, switch the plan (then the setup fee won't be lost) and use it as a component.

What do you mean by setup fee? I have already paid the 500 euros; over the years I have "recouped" this fee through the interest... Do you mean that this amount is useful as a component? If we should find something, it would be in the range > 600k (unfortunately the market is totally messed up and we can't find anything suitable as it is) Thanks and best regards

We also took out a larger home savings contract in 2013. The interest rates have now developed positively, so we had it paid out. A home savings contract is simply insurance against rising interest rates, and insurances generally only cost money and are rarely needed. But when things go wrong, you’re glad to have had one.

I don’t believe that interest rates will reach 2.25% in the foreseeable future, so if I were you, I would just have it paid out. That usually takes about 3 months. If you are looking for inventory, you will otherwise have to arrange bridge financing, which will only incur additional costs.

On the other hand, if you are still searching for another 5 years, the paid-out money won’t bring much... You really have to know whether the desire for property is even achievable.

Continue saving. There is hardly any other way to get 1% interest without risk.

I wouldn't cash out, but just keep saving. The closing fee has already been paid and no one will force him later to take out the loan. New investment options usually also cost money at first and/or the money is not immediately available.

What do you mean by connection fee? I have already paid the 500 euros; over the years I have "recouped" this fee through the interest... Do you mean that this amount is worth something as a component? If we should ever find something, it would be in the direction of > 600TE (unfortunately the market is totally spoiled and we can’t find anything suitable like this) Thanks and best regards

Of course, the closing fee has already been paid, you have had the home savings contract for a long time. But if you dissolve it and ever come up with the idea of wanting to have one again, you have to pay a closing fee again. Therefore: if you want the money, do not dissolve it completely, but have the home savings contract split into two contracts to save part of the closing fee for the new contract. Why shouldn’t it be useful as a financing component? After all, for married couples there is a government grant here in 2021 of up to 140 euros per year with a maximum taxable income of 70,000 euros.