Residential Riester: Using tax advantages without further subsidies?

Hello,

my girlfriend and I are currently planning our home financing, and many advisors recommend that we carry out part of our financing through [Wohnriester] accounts, solely to take advantage of the tax benefits.

As far as I understand, we receive up to 154 euros per year in allowance. However, we have to repay this in old age, via the so-called [Wohngeldkonto], which earns interest.

More interesting to me than the 154 euros is the tax benefit, and since I of course do not know my personal situation in old age, I have thought the following: to enter into a [Wohnriester] contract, fully utilize the tax benefits, but waive the 154 euro allowance in order not to have to repay anything in old age.

Is that too naive, or is it possible?

Here are the key data:

Financing requirement approx. 350,000 euros (100,000 euros own funds), total construction project 450,000 euros. Two net incomes available (3,200 euros + 1,800 euros).

It is a misconception. You either receive the allowance or the tax benefit if it is greater than the allowance. In both cases, you have to pay taxes on the "account" in old age.

And this account will cost quite a few people dearly later on...

Thank you, that’s what I feared. And honestly: I share the statement from Sebastian79, after my building society representative showed me the calculations that I would save almost 30,000 euros in taxes over 25 years, I was initially excited, but when I then offset this against the so-called virtual account, which is also credited with a totally illusory 2% inflation adjustment, and then look at what it will cost me in old age, I wonder whether it really pays off, especially since you never know what "nastiness" the German state might come up with to impose additional charges on this account.

At the moment, I am strongly inclined not to [wohnzuriestern], but I’m happy to be convinced otherwise with arguments.

I also advise against it. From my point of view, it is smoke and mirrors.

I also dealt with it for a while but have now decided to finance without [Wohnriester]. What bothers me about it is that if I were debt-free at 55, I would have no way to reduce the shadow account until my retirement. At least that was the information my advisor gave me. So why should someone (especially a "young" person) take out a [Wohnriester] contract? Just to watch the shadow account keep accruing interest (even though you could pay it off) and then still have a burden when you enter retirement? No, thanks. And if you then happen to die at 67, your heirs will be happy about the amount they have to pay, since it does not expire. At least that is my position.