Question to the building savings experts...

I think that in 6 years we will no longer have the euro and your saved money will then be worth what? Just a completely different point of view!

And I assume that the euro will outlive you - regardless of your age.

But actually, I only wanted tips regarding a home savings plan and not to discuss my finances and house planning here.

And I assume that the Euro will outlive you - regardless of your age.

Hmm well I'm not 30 and so far I've lived with the 3rd currency and considering the debt situation within the EU, well but you didn't want to hear that... Regarding your home savings plans, I have to say I'm not a fan of the home savings contract, everything is too uncertain how and when you really get the money (1000 hidden clauses etc.) for the few percent you get, you can better invest your money and let it work. Oh yes and your ancillary construction costs of €20,000 I think are no longer feasible even in the deepest East, unless you find a company that actually delivers the house ready to move in, but for €150-170k in 6 years at the real inflation????

Hello everyone,

based on my experiences over the past two weeks, I would now like to speak up here as well. I want to preface by saying that although I work at a bank, it does not offer construction financing. It is more of a small bank that specializes in certain wealthy clients. I am not going to advertise for anyone here, nor recommend any super great products. I will simply describe how I proceeded, what was offered, and what ultimately came out of it.

Most important point first. DON’T LET YOURSELF BE FOOLED! THE "ADVICE" IS TERRIBLE AND IT’S ALL ABOUT SALES.

My procedure.
1. Gather all your documents yourself, prepare a household budget in which you factor in everything fixed that you expect to spend during the year.
2. Include everything (life insurances, accident insurances, partner's entitlement to full-time work, etc.) that improves your creditworthiness/rating.
3. Sit down at home and calculate some "WORST CASE" scenarios, where you demonstrate to your bank that even in the event of unemployment, interest rate increases after the fixed interest period, death of the main earner, etc., the interest and repayment payments can still be made.
4. Obtain some offers from direct banks, which cannot make use of such data anyway or are not interested in it.
5. Put all the documents together, propose a rate to the banks that is 0.4 or 0.5 % below the direct bank’s rate. Address the whole thing deliberately generally with "Dear Sir or Madam......" You are not writing an application; the banks should clearly know that it is a mass letter.
6. Wait for mail.
7. One bank will definitely give in and settle for less, significantly lowering the margin.
8. Works for sure!

In my case, I had total costs of 220,000.00, with 170,000.00 to finance. Equity was 50,000.00. The Ing-Diba currently subsidizes the KFW interest rates. This is not advertising; anyone who wants to build can look it up online.
50 K EUR Kfw70 at 3.6, 70 K EUR at 3.8 and the remaining 50 K EUR was at a 5-year fixed interest rate of 3.75 and 10-year at 4.35 %. It was really funny; the banks’ first reactions were that your interest rate expectations are far from reality. Nothing below 4.3 is possible, absolutely not market-compliant, etc.
My answer: Just enter my data at Ing-Diba! The risk weighting of the loans is exactly as I want it. I have the loan contract from Ing-Diba. Give me a 3.65 or 4.25 on the annuity loan and the same Kfw interest rates.
All of this of course without a commitment fee. You have one hour to check the data and one hour to discuss it with your supervisor. Funny enough, this was all done by phone. They didn’t even need an hour.

ONCE AGAIN VERY CLEAR! Banks’ offer: Nothing below 4.3 is possible, in the end it became 3.65, 3.80, and 3.6. And all without commitment fees.

SO, don’t let yourself be fooled!

I am happy to provide information, e.g., my letters, etc.

Best regards from a very relaxed, sleeping builder!

Hello everyone,

then I would also like to share my experiences.

Regarding KfW, I have nothing to say, it is visible to everyone.

In addition, I have found a health insurance company that also finances owner-occupied homes. Up to a loan-to-value ratio of 60%, there is an interest rate of 4.34%, fixed for 30 years (the rest then via KFW), special repayments of up to 10% are possible. The whole thing is free of provision fees for 12 months.

Best regards
maccus

.....my goodness! Just registered and already all these questions are coming.

Alright, let's be very factual about building savings contracts, bridging finance, and the like.

There are certainly situations where a building savings contract makes sense. Personally, I’m not a fan.

One should keep the following in mind. The closing fee is not included in the effective interest rate calculation. I believe there is a clause stating that the fee or commission is paid in cash. You secure what appears to be a favorable interest rate for the future, which can be quite tempting in times of rising rates, but you really need to pay close attention to the repayment rate. 5% interest is great in 10 years, but if you also have to repay 5 or 6% additionally, the installments will be very high. For those who are certain, e.g. civil servants or people with secure income, this can be very interesting. However, if you have to pre-finance the building savings contract, current interest rates of 3 point something are quite expensive. Under certain circumstances, you can already get a normal financing for 3 point something and a bit more. Besides, inflation quickly erodes the interest on the savings balance in building savings contracts. Personally, I find it more sensible to take a normal annuity loan and then consistently use the prepayment rights. You can also negotiate to get higher prepayment rights. If you have two incomes for a few years, the remaining loan after 10 or 15 years might be so small that you might not care whether the follow-up financing costs 5 or 7%.
Always carefully calculate all options.
You’re not supplicants at the banks. You just want money, and the bank that meets you halfway the most will get the deal.

[A]Nice hello @withoutaname and the experts so far. Interestingly, no one has answered the question yet, but a whole lot of "tips" have been given.[/A]

With the Easy Plus of the Alte Leipziger, the minimum building savings sum has already been reached and possibly I now also want to let this contract rest—apart from the lead time—and then pay it out after the 7 years with 4 percent credit interest (due to loan waiver).

[A]Right approach! When is the contract allocation-ready? If that is within up to 3 years, it might be worthwhile to have the contract paid out with loan waiver including bonus and invest it as a special payment in a good building savings contract.[/A]

In my opinion, the FU6 of the LBS is neither fish nor fowl. Too little interest for saving, and as a loan not necessarily usable either. At the moment, I am considering terminating this contract early.

[A]Right![/A]

It is planned to build in about 6 years. Now I am looking for a saver with a low loan interest rate. The ones from BHW always jump directly into the eye here.

[A]The egg-laying wool-milk-sow doesn't exist. Good credit interest and low loan interest is nonsense. Anyone who suggests that is lying.[/A]

[A]WARNING: not only the lowest loan interest rate is decisive but the complete package: how quickly is the contract allocated, which repayment performance must/can be made, loan fee yes/no, and so on[/A]

Roughly calculated what could be paid into this saver in the next 6 years:

72 x 400 euros = 28,800 euros
old building savings contract dissolved = 2,000 euros
one-time payments = 2,000 euros

So in total we would be at about 33,000 euros.

Now, factors such as allocation come into play. It would not bring me anything if after 6 years I had to wait forever again for it. Then the lowest loan interest rate does me no good.

[A]True ;)[/A]

My question:
What can be recommended to me? What options would come into consideration?

The following factors determine the amount of the ALLOCATABLE building savings contract:
* Savings rate: here 400.00 & special payments great
* Repayment rate
* Term here 6 years is enough!
* Timing of special payments
* Choice of loan interest rate

Thanks!

A few brief key data about what we want to build in 6 years.
I am of course aware that much can still change in a few years regarding interest, house prices, and so on.

Land – 40,000 euros
Ancillary building costs – 20,000 euros
120 m² house – 150,000 euros (no basement!)
Garden/garage/special equipment depending on desire 20,000 euros
Kitchen: 10,000 euros
Reserve: 10,000 euros

Total: 250,000 euros

Own capital by then:
30,000 euros in cash
about 30,000 euros in the new building saver that I now still want to conclude.
Capital requirement thus: 190,000 euros

The subsequent monthly burden should not exceed 1,000 euros.

Many regards.

Sorry, but I am still not quite familiar with the handling of the quote function. Therefore, most of my answers are "hidden" in the quote. I then marked them BOLD.

So TODAY no one knows reliably what the actual loan interest rate will be in 6 years.
Also here applies: whoever says otherwise now is lying!

But what is certain is that looking back over the long term (30 years) we have an average interest rate of 7.8% for construction financing. From this it follows that @withoutaname is indeed acting wisely if he already secures a very favorable loan interest rate now for a part of the financing amount.