Construction financing... realistic and sensible?

I don't find 165 k€ for 120 m² in SA totally off... 1375 € / m² - could be possible. However, I agree with the previous speakers about the Bauspar contracts and Riester contracts - high fees, high interest rates, and you don't use the huge advantage either because you have no children.

Hello I am also currently dealing with the topic of construction financing what do you think a sensible financing solution should look like nowadays the problem is that every banker offers the best deal!!!

A good financing is one that you yourself understand and where you know exactly how expensive the loan really is for you.

The simpler a financing is, the more trustworthy (meaning that you will repay the loan) the banks consider you.

The easiest method is:

- 50000€ KFW
- the rest in one large loan

Building savings contracts, Wohnriester without children, numerous small loans and complicated schemes are always a sign that the banker is trying to sell you something with all kinds of tricks, even though he knows that it is actually not a good idea. But a car dealer would also rather sell you a new one than send you to the used car dealer...

A good financing is one that you understand yourself and where you know exactly how expensive the loan really is.

You can't say that loudly enough!

These building savings constructions have the reputation of being safe. But they are not. Whether the plan works depends on whether the building society can guarantee allocation when the time comes. And that, in turn, depends on whether the building society acquires enough new business. This recently published article outlines the problem.

What the coupling of mortgage loans with other products can mean has been experienced by all borrowers who have linked their loan with a life insurance policy. That no longer leads to financing gaps, those are more like financing craters...

In short: there is no valid reason to repay the loan with any other product. That only brings unnecessary uncertainty and risk into the real estate financing. A classic annuity loan may be boring, but in 98 percent of cases it is the most sensible way.

Many greetings to Saxony-Anhalt, where there are still plots of land for 25,000 EUR.
Andreas Wenzel

Hello again,

these are all very good pieces of information that you simply don’t get from the bankers. Everyone tries to sell as many contracts as possible.

So would it basically be safer to take out a traditional annuity loan? Possibly [Kfw] or [Investitionsbank des Bundenslandes] as well.

Does it then make sense to already secure the possible residual debt of the annuity loan after the fixed interest period in a building savings contract?

Best regards