building society savings plan

Hello.

I wanted to ask if a building savings contract is worthwhile and which is the best provider for it. We want to save monthly and then take out a loan. My girlfriend and I want to build a bungalow-style house in 7-8 years and it should not cost more than €100,000.
What else should be calculated, it won’t only be the house cost but the land, etc.?!

Best regards
Johannes

I would advise against taking out a building savings contract. 1. Contract fee 2. Annual account management fees 3. Loan fee upon allocation 4. Magazine costs 5. Loan insurance from a loan amount of 20,000,- We calculated that with an interest rate of 2.5% on the balance minus all the costs, we received about 0.5%. A Riester building savings contract might offset this for certain #incomes, but there are many question marks whether the subsidy would then have to be repaid... My suggestion: Find a savings account with a good interest rate (we currently have 1.75%), set up a standing order with your bank for the amount you want to transfer each month. For example, 200,- monthly x12x7=16800 in 7 years plus interest. That is of course too little. You have to save about 600-800 to get some reasonable equity. With 100,000,- you can't buy a house now, in 7 years the probability will certainly decrease. +Land (you should be able to pay that out of your own pocket), 15,000-30,000,- ancillary building costs, +purchase incidental costs. It’s good that you are already thinking about this now, you can prepare well. Good luck