Construction financing with Riester loan

  • Erstellt am 2012-04-19 12:26:49

Galoc

2012-04-19 12:26:49
  • #1
Hello House Construction Forum Community,

currently we are planning our construction project

After discussions with various financial intermediaries, the house bank is still pending, we currently have the following offer:

Total cost: €450,000
/ Equity: €100,000
= Financing amount: €350,000

€50,000 as Kfw at 2.38% -> €210.00 per month
€300,000 as Riester loan (25 years) at 3.51% -> €1,127.50

Total monthly burden: €1,337.50

According to the offer, we would receive a tax subsidy of €1,515.98 per year which we get refunded in the income tax return.

In addition, there is a bonus of €154.00 per person/year

Total allowance over 25 years would therefore be €45,599.50

Now comes the point where I become suspicious: After the contract expires, €17,213 must be repaid per person (my wife and I).

So from the total allowance, only €11,173.50 remain. Additionally, there are special repayments that reduce the interest burden.

Has anyone here had experience with this type of financing? Or would you recommend the classic annuity loan?
 

Shism

2012-04-19 13:22:14
  • #2


Keep in mind that the special expenses deduction in income tax is limited.. I believe currently to €2,100... so if you are already claiming other larger amounts in your income tax declaration here, the tax subsidy can quickly be reduced!

I am personally not a fan of Riester.. whether it might be worth it in this specific case depends on the corresponding offer without Riester...
 

Der Da

2012-04-19 14:34:55
  • #3
I don't know how it is with [Bauriester], but retirement provision with Riester is a big scam, and it has already been heavily criticized by many financial testers. Moreover, there is still the possibility that Riester subsidies can be reclaimed by the state, if I remember correctly.
 

cleotessa

2012-04-20 14:14:33
  • #4
Just today I read an article about it. As soon as you sell, rent out, die or get divorced, the whole thing becomes unpleasant. Then taxes and repayments probably fall due immediately – also for the heirs. See [capital 02/2009]. Of course, I don’t know if that is still up to date! Our independent financial advisor also advised us against it... our house bank guy, on the other hand, warmly recommended it to us.
 

Micha&Dany

2012-04-21 07:43:52
  • #5
I pondered the Riester thing for a long time as well... But by now I can only *strongly* advise everyone against it! The argument that ultimately convinced me: Even if I plan to live in the house for the rest of my life – who knows if I won't need care in old age... If I then have to go into a nursing home, I have to pay back all the Riester subsidies at once! Everything else can somehow be managed – job relocations, age-appropriate apartments... – You just have to live in your property for Riester – meaning you can sell one property and buy another, but you can't buy a place in a nursing home – and the likelihood that you will eventually depend on it is quite high... So think carefully about what you do! Just because it apparently offers an advantage doesn’t mean it will remain so until the end! Regards Micha :cool:
 

Similar topics
19.02.2013Is a Riester loan useful for my case?13
11.07.2014Financing / Subsequent Taxation of Residential Riester10
21.10.2015KfW funding after 01.04.201611
22.12.2015KFW 70 funding still in 201524
17.12.2015Kfw funding 2016 - How to set up construction financing?10
13.01.2016Residential Riester: Using tax advantages without further subsidies?12
10.05.2016KfW funding for two-family house26
07.10.2016BAFA funding tips38
29.05.2016Conditions for Riester home savings contract - What interest rate?16
29.06.2016Promotion of soundproof windows11
30.09.2018BAFA funding for air-water heat pumps in new construction - how does it work?30
10.12.2017Second residential unit in the house due to KfW funding 15313
23.04.2018What to do with the Riester pension insurance?43
12.06.2018Use Riester pension for financing?30
01.05.2021Photovoltaic system battery storage subsidy feed-in tariff?44
15.02.2020KFW55 funding + BAFA funding57
28.08.2020Home financing with interest loan and Riester or without Riester95
21.03.2021Land registry later than planned - save KfW funding18
16.02.2022How to cancel Wohn-Riester for a home or how to proceed?55
15.05.2025Riester Classic S11 Tax Questions10

Oben