Property purchase - How to finance it best?

Hi,

thanks! That's how I'll do it.

Regards

Hello Chris,

I don’t know what kind of contract you have with the building society savings plan or how much you need to save at least to qualify for allocation. But if you top up this amount with your overnight money, you can arrange interim financing through the building society or your savings bank until the building society contract is allocated and you only pay interest until the allocation. After that, you repay your building society loan (interest and principal according to the contract) as usual.

Hello Burgfräulein,

thanks for the information. I will take a close look at the contracts tomorrow and discuss the option with our advisor, then post the results here. I have to go there anyway.

Regards

Hi guys,

there is something new again. So we are still stuck in negotiations with the seller. He doesn’t want to go any lower on the price. Now it’s a case of "take it or leave it!" for us.

I have gathered the money except for 15,000. Now I have two options:

The building society offers me a construction loan:

15,000 over 2 years at 5.1% effective annual interest

will cost me a total of 15,808

with land charge registration!


The bank offers me a loan 15,000 over 2 years at 5.99%

will cost me 15,968

without land charge!


How would you decide? I’m asking especially with regard to creditworthiness and [Schufa Score] etc.! What should be considered there? The advisor at the bank said that my score might even improve if I repay a loan without any problems! Are there differences between construction loans and loans? Do I not get any entry with the construction loan at [Schufa] at all?

Looking forward to your feedback.

Best regards and have a nice evening!

Chris.

Since registering the mortgage also costs money, you probably won't really save with the first offer. Look for an independent financing advisor who works with several banks. If you get a better offer there, that's good; if not, you can still take one of the two.

I find the interest rate very high. If you look at the types of construction financing available and what interest rates they offer, if a bank offers 3%, it is not the cheapest with this low interest rate; you can easily find one that finances below 3%.

I have an independent financial advisor who provides me with a total interest rate of just over 2% using [KfW funding].

We are now only processing the financing and can start building.

Best regards