Help with laying the foundation stone for house purchase?

Hi guys,

a quick word about me and my plan. I am 29 years old (single and childless, but that could change in the next 1 - 2 years) and I plan to build a house or buy a used one in the near future. Since there are simply no good plots available here at the moment or the prices are far above their market value, I have decided to wait a few more years (between 1 - 5 years). Now I thought that I somehow have to secure the interest rates.

I have about €70,000 in equity - (I can save €200 - 300 monthly and from 03.2017 then €500).

At first, I thought about a building savings contract (Bausparsumme €200,000, which would then be allocated in about 5 years with my lump sum and monthly payments. The monthly burden for the loan would then be €800 for nearly 14 years).

Yesterday I went to Schwäbisch Hall and wanted to get an offer for a building savings contract there, but I was advised to get a Riester building savings contract because I can extend the amount by 75%. He said it like this: if I have about €75,000 in the Riester building savings contract, I can apply for a loan of €225,000. I will be informed about the conditions at tomorrow’s appointment (because yesterday it was too tight timewise). Now my question: my girlfriend and I already use Riester for retirement provision with DWS in funds. Is Riester BS even worthwhile? Don’t I have too many disadvantages there?

Is there possibly a similar product like the Riester building savings contract where I can secure the interest rates and do not yet know the required loan, since I will only build in a few years?

Are there any other good alternatives?!?!?!? If you need more info, please write and I am grateful for any help. This whole running around and everyone telling something different is driving me crazy!!

Best regards

Yes... a completely normal annuity loan - maybe not so attractive because the commission for the advisor is lower. What would be the guaranteed interest rate with the normal Bausparvertrag? By the way, with 200 T€, it will probably be difficult for you to finance a new building (including incidental construction costs and land etc.) in 5 years (even if interest rates are at 20% and no one is building a house anymore). Don’t you have to strangely pay additional taxes on Riesterbauen in old age? Do you have children? I once read that it only pays off, if at all, through the allowances for the children... (unqualified hearsay)

Hello Walter,

welcome to the HBF.
: yes, he is single and childless.

I think it’s good if you wait a few more years regarding your private status.
If your status should change, and then consistently so, there is nothing better than building a nest together. Because this can bring people closer together, even though there is no guarantee for that ;) Besides, it gives you even more flexibility now in case the changes turn out to be bigger than expected, e.g. concerning the size of a property or location.

Regards Yvonne

She is right... those who can read clearly have an advantage :D

: so we didn’t want to wait, only unfortunately we have no choice but to wait a bit. Since there are hardly any plots of land here, or houses. If there are, they are so outdated and cost three times their value. :)

We?