Buy property now, and build in 3 to 5 years?

Hello, Thank you for your advice. Unfortunately, I work in the banking sector in the IT area and have no point of contact with [Fachberatern der Baufinanzierung]. Where can one find a good one? I have unfortunately found that banks only want to sell you their "product." Regards

Hello,

first of all, I would try to get an appointment at the bank where you have your salary account.

Alternatively, I would also inquire with the major life insurance companies, as they currently have quite good offers, especially for longer (> 20 years) fixed interest periods.

At the moment, almost every advisor will recommend (have to recommend) that you also integrate a Wohnriester into the financing.

However, opinions are divided on this – I, as a banker, personally think it’s not a good idea at all, since until today no one can tell me how the whole thing will be taxed upon maturity in the distant future.

If you tell the advisor that you do not want the Riester, you will quickly see whether the advisor is fair to you. If he now offers you a "normal" financing (which can also consist of different annuity loans), he is advising you according to your wishes. If, on the other hand, he "sticks" to his Riester product or also building savings contract (high commission products), I would personally keep my distance.

Regards,

Dirk

Hello,

first of all, I would try to get an appointment at the bank where you have your salary account.

Alternatively, I would also inquire at the major life insurance companies, as they currently have quite good offers, especially for longer (> 20 years) fixed interest periods.

At the moment, almost every advisor will recommend (have to recommend) that you should also integrate a Wohnriester into the financing.

However, opinions on this are divided - I, as a banker, personally think it's nonsense, since no one can tell me today how the whole thing will be taxed at maturity in the distant future.

If you tell the advisor that you do not want the Riester, you will quickly see whether the advisor is fair to you. If he now offers you a "normal" financing (which can also consist of different annuity loans), he is advising you according to your wishes. However, if he sticks to his Riester product or building savings contract (products with high commissions), I would personally keep my distance.

Best regards,

Dirk

Well, that's a piece of advice! When I read Wohnriester, I already thought...... As good as it sounds at first, in my opinion it’s rubbish. Sorry to have to say that, but again, only the other banks/advisors make money from it. For oneself, as you wrote, the benefit is questionable.

I would still not dismiss Wohnriester too quickly. We have it included as an additional component in the financing, but we are still considering whether to actually take the subsidies. Under certain circumstances, it is not so bad as a TA loan with a redeeming building savings contract.

We have also thought about that. As mentioned, the question is whether it will pay off later and to what extent deductions will be made. In our case, there was an enormous amount of processing fees and commission from the insurance company that had offered it to us. In the end, I was also able to find a test of the Riester variant from an independent company on the internet. That product failed there. Almost all similar products are viewed skeptically by experts. Regards

Friends of mine also bought a plot of land about 7 years ago, financed it, and paid it off completely after about 5 years. A little over a year ago, they built a city villa on the plot.
I personally would do it the same way if the plot met my expectations. A paid-off plot is valued just like existing equity!
And you have this "saving obligation" because the plot has to be serviced.
I also had the chance to buy a TOP plot at a great price about 2 years ago. But since I still had a house at that time, I didn't dare to buy it.