Pre-financing Schwäbisch Hall Wohnriester savings contract/variable loan

Hello,

no, that is definitely not the case.

However, there are some points to consider.

Basically, the rule for sale or rental is as follows: you lose the entitlement to funding.

The moment you no longer live in the house yourself, you have to report this.

This extinguishes the entitlement to further funding. The entire funding received so far is then considered "misused." For this reason, the housing promotion account must be reset to zero, and you immediately incur a tax liability that is due right away.

However, there are exceptions to this rule, which can be found on relevant websites.

As mentioned earlier in this thread - for me, Wohnriester has too many "unknowns" for me to include it in the biggest investment of my life.

Best regards,

Dirk

The immediate tax liability is probably not the case if you buy another home right away, for example selling a house and buying an apartment (children have moved out, etc.). With Wohnriester, I still have the option to reallocate the money afterwards, meaning if I decide not to take out the loan, I won't suffer any disadvantages. Who knows what will happen in 15 years? If you are satisfied with that and can rule out all other things, then this financing seems to be the right choice for you.

The immediate tax liability probably does not apply if you buy a home again right away, for example selling a house and buying an apartment (children have moved out, etc.).

That is why I referred to the exceptions and the relevant websites in my last post.

With Wohnriester I still have the option to reallocate the money afterward, meaning if I don’t want to take out the loan after all, it causes me no disadvantage. Who knows what will happen in 15 years?

That is exactly the big "problem" with the Wohnriester contracts. No one can tell me today with certainty what will come. The tax treatment is absolutely unclear because no one knows what the tax law will look like at the time of retirement.

If you are satisfied with it and can exclude all other things, then this financing seems to be the right choice for you.

: I would be rather cautious with such statements in a forum. You neither know the personal situation of the OP nor his tax situation, and also the personal circumstances are probably unknown to you. Even though I deal with Riester products professionally among other things, I would not dare to give a recommendation.

: I would be rather cautious with such statements in a forum. You neither know the personal situation of the OP, nor their tax situation, and the personal circumstances are probably unknown to you as well. Although I work professionally with Riester products among other things, I would not dare to give a recommendation.

I certainly did not mean to give a recommendation but wrote: If YOU are satisfied with it and can exclude all other factors... As you write, everyone has to decide that for themselves and their situation. We have no insight here, only the OP themselves does.

That is exactly the big "problem" with the Wohnriester contracts. Nobody can tell me with certainty today what is going to happen. The tax treatment is absolutely unclear because no one knows what the tax legislation will look like at the respective retirement entry.

Although I deal with Riester products professionally among other things, I would not dare to give a recommendation.

Exactly for this reason, a Riester contract is out of the question, even though it was offered to me and my partner some time ago and was touted as the "non plus ultra." Who knows what will be in 30 years? No one can predict the tax legislation, and above all, whether one will still have the breathing room in retirement to repay the money for the housing promotion account. In the worst case, one might die for whatever reasons and leave debts to the children first.