Is that OK? Compare financing offers! Thank you!

Hello first of all,

I have been reading this forum with great interest for some time now and I have a question.

About myself: I am 33 years old, female + 2 children

Net monthly income: 3,000,-

We have a single-family house (2 apartments: 1. 100 m² / 2. 60 m²) we would rent out no. 2 (rent 350 €):

Purchase price 215,000 + incidental costs 22,000 - equity 30,000

= 207,000 (loan amount)

Now I have an offer from my house bank and I am not sure what to make of it:

Looks as follows.
Interest Repayment Term (fixed interest) Rate Remaining debt
TA (Wohnbauriester) through me 80,000 € 2.70 / 2.78 3.00 13 / 24 345 / 400 0,-
TA (Wohnbauriester) through my wife 47,000 € 2.85 / 2.93 3.00 17 / 26 171 / 314 0,-
Bank loan 80,000 € 2.96 / 3.00 1.00 10 264 70,700,-

207,000 € 780,-

And another offer from an independent real estate finance advisor:

Bank loan 76,000 € 2.64 1.00 10 / 37 230,- 67,300,-
Bank loan 31,000 € 2.64 1.00 10 / 37 95,- 27,500,-
Bank loan 50,000 € 2.79 5.38 15 340,- 0,--
L-Bank WmK 50,000 € 2.70 1.80 10 / 35 190,- 40,900,-

207,000 € 855,- 135,700,-

So my question is simply: the term at the house bank I would be finished after 32 years and with the 2nd offer after 37 years.

The repayment and interest rates are all in all not bad, only this repayment suspension loan with my house bank, I have ultimately heard that you pay in, then after X years you redeem the loan with the saved amount and until that point you "only" pay the interest but on the entire loan amount because during these years no repayment takes place.

I have already read up on the matter but by now I think you shouldn’t be taken advantage of if you study this before even thinking about buying a house.

So I am already very grateful in advance for constructive help.

Saki

You don’t want anyone to recalculate the numerical confusion and compare it?

Familiarize yourself on the one hand with the advantages and disadvantages of Riester and building savings contracts.
Moreover, as far as I know, rental is not possible for the portion financed with Riester.

From a tax perspective, one should repay the loan for the rental portion little, since the interest there is tax-deductible, and repay the loan for your own residential portion heavily.

No, that wasn’t really my concern, but there are some who know their way around here well and I ask them to take a look and simply share their experience. The TA loan is not entirely clear to me? I only know the definition, I don’t really see the advantages. And how does it work if I want to use the rented apartment for personal use at some point, how does that affect the loan? Many thanks for the help. Saki

Hello

for my taste there are

a- too many components. Normally it should be 1 for own use 2 for the rental part and as far as I'm concerned also the Kfw or L-Bank

b- all loans fixed for interest for at least 15 years

We have a single-family house (2 apartments 1. 100 m² / 2. 60 m²) and would rent out apartment no. 2 (cold rent €350):

Purchase price 215 K + incidental costs 22 K - equity 30 K

= 207 K (loan amount)

Now I have an offer from my main bank and don’t really know what to make of it:

It looks as follows.
Interest Repayment Term (fixed interest period) Rate Remaining debt
TA (Wohnbauriester) through me 80 K € 2.70 / 2.78 3.00 13 / 24 345 / 400 0,-
TA (Wohnbauriester) through my wife 47 K € 2.85 / 2.93 3.00 17 / 26 171 / 314 0,-
Bank loan 80 K € 2.96 / 3.00 1.00 10 264 70,700,-

207 K € 780,-


And another offer from an independent real estate financial advisor:

Bank loan 76 K € 2.64 1.00 10 / 37 230,- 67,300,-
Bank loan 31 K € 2.64 1.00 10 / 37 95,- 27,500,-
Bank loan 50 K € 2.79 5.38 15 340,- 0,-
L-Bank WmK 50 K € 2.70 1.80 10 / 35 190,- 40,900,-

207 K € 855,- 135,700,-


So my question is simply: the term at the main bank means I’m finished after 32 years and with the 2nd offer after 37 years.

The repayment and the interest are overall not bad, just this deferred repayment loan with my main bank I’ve ultimately heard that you pay in, then after X years you redeem the loan with the accumulated amount, and until then you only pay the interest but on the entire loan amount, since no repayment takes place in those years.

Hello Saki,
I can’t tell you much about the Riester pension variant. That is a topic I am not very familiar with.

In general, you should better go for a long-term fixed interest rate – i.e., at least 15 years.
But I have to say something about the real estate advisor’s offer.

What caught my eye immediately was the repayment amount + term. At the current interest rate level, in my opinion, you would not be finished after 37 years.

You don’t want anyone to recalculate the numbers and compare them?

Since I am reluctant to assert something without proof, I recalculated offer 2 (see attached Excel sheet). Although I calculated with annual rates (with monthly repayment you repay a little more due to the reversed compound interest effect).

The 3rd bank loan (interest fixed for 15 years) as well as the state bank loan are correctly calculated as far as I can tell.

For the first two bank loans (each with 10 years fixed interest period and 1% repayment) the calculation after 10 years is correct, but the remaining term is not at all. Either you missed a calculation basis/didn’t post it (e.g., an interest rate increase of x percent or included special repayments), or you can throw the advisor into the bin...

The 1st bank loan would be repaid after roughly 50 years, and the 2nd loan “already” after 49 years.
If you didn’t overlook something when posting, you should look for another independent advisor.

Unfortunately, I cannot find any option among the icons to attach an Excel file (it is not an image or video).