Financing through building savings? I don't see the catch.

Yep, the alternative is a joke.

KfW not considered at all, the 29-year fixed interest period is not necessarily needed, plus different rates?!

Get advice somewhere else ... maybe an independent financing broker/loan intermediary.

I don't get a single bit of what you are presenting.

That perhaps reflects a bit of my confusion as well. I am doing my best to express myself more clearly in the future.

What does your advisor/bank say about the fees for this whole building savings contraption and the tax on the Wohnriester? Are they included in the almost 97,000 financing accounts? If not, then it's not the financing accounts...

The fees are already included (Wohnriester €1400 = months 1 to 5 * €280, building savings contract first month €980).
Since the Riester subsidy is not claimed, the housing promotion account remains = €0, so no taxes in the end.
This only results in better loan conditions from the bank (direct quote from the bank).

Why so much building savings contract if you don’t use the “earned” interest after allocation in a loan? That’s what they are actually intended for. Here you just keep paying off one with the other without using the “advantages.” You ultimately make them useless.
You pay interest, fees forever, and in the end hefty taxes again.

A long fixed interest period is important to me. The “earned” interest makes this possible because I use it to repay my “short-term” loans (10 years: KfW and loan).

For the annuity calculation, how high is the initial repayment, the amount of the installments?

1.1.2014 - 1.7.2023: €1094
1.8.2023 - 1.7.2030: €1245
1.8.2030 - 1.3.2043: €1207
1.4.2043: €673.91

It should be clear to you that the same person who calculates the insane “Riester-, building savings-, KfW-, high-interest-€60,000 loan-, no-one-gets-it-construct” also calculates a discouragingly high-priced “I’ll just slap something together for you” annuity in the “comparison.” The other one is supposed to appear cheaper – which in most cases(!) it is not.
Have another banker properly calculate a €200,000 annuity + €50,000 KfW for you.

That’s next on the agenda with house bank number 2.

I also have a financing offer from an “independent” In___h_p advisor:
Loan €150,000 (interest rate 3.75%, repayment rate 2%, fixed interest period 20 years) -> refinancing over another 9 years of €60,837.94 at fictitious 4.5%.
KfW 153 (interest rate 1.80%, repayment rate 4.42%, fixed interest period 10 years) -> refinancing over another 10 years of €30,066.50 at fictitious 4.5%.
KfW 124 (interest rate 2.75%, repayment rate 4.01%, fixed interest period 10 years) -> refinancing over another 10 years of €26,933.84 at fictitious 4.5%
Financing costs: €129,552.37 (over €30,000 more than the patchwork offer) PLUS the risk after 10 and 20 years.

So far it really is an apples-to-oranges comparison.

Simple is something else.

Regards,
Ojemine

From the risk of interest rates after the fixed interest period, you can withdraw f

Oops.. I was too quick to hit send :)

You can buy yourself free from the risk of interest rates after the fixed interest period. By repaying, repaying, repaying.

As for that opaque construct... No person in the world could convince me that it (in your case) is so much cheaper. And still so much safer through the building savings contract interest rate security. Yeah-sure. There is a reason why interest rate security also costs more in the annuity...

It is opaque, not comprehensible, and that's intentional. Anyone who calculates like that has something to hide. But I don't want to argue it away, to each their own. I just have a natural aversion to something like that.

I favor the classic annuity. And every banker in the family does the same.

Take your monthly budget, how far does it get you? How much could you repay? The interest rate depends not only on the fixed interest period and equity. A higher repayment, for example, can also push the interest rate down.

And over 3.7% is currently very high. Interest rates have been falling again since last week. It won't be long before banks also pass this on in their branches.

20 years is also only reluctantly offered, therefore probably expensive in relation.

Get quotes from the big insurers, e.g. Allianz, Debeka, etc. They often offer longer terms of around 25 years and are quite affordable. That’s at least my experience with the topic. You should be better off with a combo of Kfw/annuity loan and also understand what you’re signing up for. Otherwise, there’s also a good offer from BHW, a building savings combo over about 25 years that could fit well because your equity is not bad. We also wanted to take that first, but they didn’t recognize our land contract as it was, so it was out of the question from the start. The advantage with BHW is that they guarantee the interest rate until allocation, meaning that if the allocation of the building saver is delayed (which can definitely happen), you continue paying only the low interest and don’t have to finance the gap expensively.

I don’t understand a thing about what you’re presenting.

What does your advisor/bank say about the fees for the whole building savings scheme and the tax on the Wohnriester? Are they included in the nearly 97,000 financing accounts? If not, then those are not the financing accounts...
Why so many building savings contracts when you don’t use the “won” interest after allocation in a loan? That’s what they are actually meant for. Here you’re just paying one off with another without using the “advantages.” In the end, you’re making them useless.
You pay interest and fees forever, and in the end, hefty taxes again.

Regarding the annuity calculation, how high is the initial repayment, the amount of the installments?

It should be clear to you that the same person who calculates that crazy “Riester-, building savings-, KfW-, high-interest €60,000 loan-, no-one-understands-this construct” presents you a frighteningly overpriced “I’ll just slap something together” annuity in the “comparison.” The other one is supposed to seem cheaper - but in most cases(!) it isn’t.

Have another banker properly calculate a €200,000 annuity + €50,000 KfW.

So far it really is an apple / pear comparison.

5 thumbs up!

Everything else is nonsense! The biggest slap comes in old age and with the back taxation of the Wohnriester! But that doesn’t matter to the happy-go-lucky clerk at the counter. He’s long since moved up since they’re out of liability anyway (you’d already have to get into tax consulting there).