Why is financing so difficult?

Hello,

So we will definitely join the Bauherren-Schutzbund and use a lawyer there who will review the contracts with us. I don't know to what extent he can also point out construction-related problems to us.

He (the lawyer) will look at the contract from the legal side and its implications for you. Usually, the employees also review the BB; they will raise a flag if necessary. That is a good start

Otherwise, we "treat" ourselves to construction supervision that accepts the trades with us.

Yes.

Rhineland greetings

A friend had recommended that we rather avoid special repayments and instead try to keep up with the interest rate level through building savings contracts, which we should then make ready for allocation as quickly as possible. If the loan (e.g. Kfw70) expires in 10 years, we can use the integrated building savings contracts for further repayment. So, only start repaying then. What do you think about that?

That is often more expensive than repaying directly. If you want interest rate security, it is more sensible to extend the fixed interest period and to put what you want to invest in the building saver directly into the repayment of the annuity loan.

Would you like to explain that a bit more? Why is that more expensive? A longer fixed interest period usually means a higher interest rate. With the amounts involved, that is quite a hefty sum. I have no idea about this. I just thought that an early repayment option during the term is basically more expensive than if I continue to repay with the [Bausparvertrag] after the term ends, or is that then a loan restructuring? Ah, this is complicated. I know why I am in IT.

If you make special repayments, you no longer have to pay interest on the repaid portion over the remaining term. With the building savings contract, you save at zero interest, and after the loan for which you have been paying interest the whole time expires, you repay it with the building savings contract for which you have received almost no interest. Interest loss.

Putting aside other disadvantages of the building savings contract ([Auszahlung nur nach Erreichung der Zuteilungsreife, Abschlussgebühren etc.]).

If you reduce your loan as much as possible within the fixed interest period through special repayments, you make yourself more independent of future interest rate developments because the remaining debt is accordingly low and even with sharply rising interest rates the burden does not necessarily increase.

Special repayments are only realistically feasible if a positive income development is foreseeable or if surpluses are generated all along, so that you can afford them. Fundamentally, in my opinion, this applies even more to the building savings contract, because the special repayment is effective even if less is repaid than originally planned.

With the building savings contract, you might not reach the allocation maturity and have paid into it, the fixed interest period runs out, and still you don't get access to the fresh (favorable?) money from the building savings contract.

In my opinion, not really a gain in security.

hm ok, I understand that Thanks. Well, let's see what the banks cobble together for us. The Kfw70 loan will definitely be included with €100,000. It expires after 10 years. Depending on how the rest is financed, we'll have to see. Oh, exciting!

Kfw 70 for TEUR 100? 2 residential units or how does that work?