Nilo
2013-02-18 10:28:33
- #1
Preliminary:
Here, only some rough guidance can be given. Construction financing is far too complex to be created in a forum. Therefore, a visit to a bank/a financing advisor is recommended beforehand.
I will roughly address your information:
Riester contract:
Is it a Wohnriester or a regular savings plan (e.g., in a fund)? With the savings plan, the money can be used for the construction project BUT only from 10,000 EUR.
With Wohnriester, there is the possibility to include it in the construction financing BUT here, too, everyone must weigh the pros and cons for themselves (e.g., taxation in retirement, repayment in case of sale/rental of the property, etc.). We personally decided against Riester in the construction financing and let the existing Riester contract continue purely as retirement provision.
Life insurance policies:
The one from 1999 could possibly be used if the necessary criteria are met. More on that with the advisor. Contracts concluded from 2005 onwards are only 50% tax-free if they are paid out from the age of 60. The second insurance is therefore probably excluded.
BUV:
Important point. It should then be clarified whether the agreed sum still fits or needs to be adjusted under the new aspect of construction financing.
Lead time:
Yes, it could be used as a special repayment after 7 years. Whether this makes sense depends on the individual case.
Financing:
What does the 2.7% effective interest rate refer to?
Yes, currently a realistic benchmark for a 10-year fixed interest rate.
But let's base it on your information:
350,000 EUR costs
- 40,000 EUR equity
- 15,000 EUR life insurance
=> 285,000 EUR financing need. Including a 5% reserve, let's calculate with 300,000 EUR.
300,000 EUR at 2.7% with 2% repayment (in my opinion the minimum level at the current interest rate!) results in a monthly rate of 1,175 EUR.
At first glance, this should be manageable for you BUT after 10 years you still have an outstanding debt of about 141,000 EUR.
Not a small amount to bear an interest rate change risk in 10 years.
Financing with 20 years fixed interest rate then no longer move around 2.7% but rather around 3.7% .. this makes a monthly rate of about 1,425 EUR ..
You see .. a very complex topic that only a specialist can analyze in a personal conversation.
Here, only some rough guidance can be given. Construction financing is far too complex to be created in a forum. Therefore, a visit to a bank/a financing advisor is recommended beforehand.
I will roughly address your information:
Riester contract:
Is it a Wohnriester or a regular savings plan (e.g., in a fund)? With the savings plan, the money can be used for the construction project BUT only from 10,000 EUR.
With Wohnriester, there is the possibility to include it in the construction financing BUT here, too, everyone must weigh the pros and cons for themselves (e.g., taxation in retirement, repayment in case of sale/rental of the property, etc.). We personally decided against Riester in the construction financing and let the existing Riester contract continue purely as retirement provision.
Life insurance policies:
The one from 1999 could possibly be used if the necessary criteria are met. More on that with the advisor. Contracts concluded from 2005 onwards are only 50% tax-free if they are paid out from the age of 60. The second insurance is therefore probably excluded.
BUV:
Important point. It should then be clarified whether the agreed sum still fits or needs to be adjusted under the new aspect of construction financing.
Lead time:
Yes, it could be used as a special repayment after 7 years. Whether this makes sense depends on the individual case.
Financing:
What does the 2.7% effective interest rate refer to?
Yes, currently a realistic benchmark for a 10-year fixed interest rate.
But let's base it on your information:
350,000 EUR costs
- 40,000 EUR equity
- 15,000 EUR life insurance
=> 285,000 EUR financing need. Including a 5% reserve, let's calculate with 300,000 EUR.
300,000 EUR at 2.7% with 2% repayment (in my opinion the minimum level at the current interest rate!) results in a monthly rate of 1,175 EUR.
At first glance, this should be manageable for you BUT after 10 years you still have an outstanding debt of about 141,000 EUR.
Not a small amount to bear an interest rate change risk in 10 years.
Financing with 20 years fixed interest rate then no longer move around 2.7% but rather around 3.7% .. this makes a monthly rate of about 1,425 EUR ..
You see .. a very complex topic that only a specialist can analyze in a personal conversation.