Financing better with or without Wohn-Riester?

You should also know about Riester: if you ever want or have to sell the house, you have to pay back the subsidy amount. I don't know how it works with inheritance. In any case, everyone advised us against it.

The two KFW loans are nice, but in 10 years you’ll still have a remaining debt of about 60,000 on the repayment. Can you live with the interest rate risk there? Or wouldn’t it be better to take 50,000 via KFW and put the rest into a 30-year loan? Just a thought. I can’t give you any advice because I don’t know you, your plans, or your finances. Besides, there are people who have actually studied this.

Hello Vader

I would also strongly advise you against Riester. I myself thought about it for a long time, but I have come to the conclusion that the risks are far too high.

Above all, the following argument convinced me:
As Der Da already wrote, you have to repay the subsidies if you no longer live in your own property at some point.
And can you be sure that you won’t have to go to a nursing home when you’re old??

If you have to go to a retirement home / nursing home, then you would have to repay all the subsidies - no matter if you are 80, 85 or already 90 years old...

Regards
Micha

With 2 children, it really pays off a lot. A colleague calculated that for me today. But it is less recommended for the childless.

In Eigentum werden wir wohl immer leben wollen.

And how exactly can you rule out that you will get sick in old age and have to go into a nursing home??
I would like to know this trick

Regards
Micha

As far as I know, you don't have to pay taxes back for that. So completely without a trick

What I could imagine is that it depends on the age. -> Before retirement, I have to repay immediately -> after retirement, see the following post

Wohnförderkonto: Design of the deferred taxation As with all Riester contracts: Contributions to the Riester contract are tax-free and taxes must then be paid on the withdrawals. The problem of deferred taxation is intended to be solved by creating a fictitious Wohnförderkonto ("shadow account") for Wohn-Riester savers. Fictitious because it is only pretended that a Riester contract is being funded with the contributions. On the "shadow account," the funded capital accumulated over the years should be "booked" with 2 percent fictitious interest per year. The resulting final amount is to be subject to income tax as a fictitious life annuity upon retirement. Wohn-Riester savers can pay off the taxes over a period of up to 25 years or also repay the entire amount immediately upon retirement with a 30 percent discount. The tax liability can therefore be settled as a one-time taxation on only 70 percent of the fictitious capital. The deferred taxation must be completed by the time the 85th birthday is reached at the latest. If the Riester saver dies before that, the heir must pay the tax.