Start planning the construction financing at an early stage

Those who take the time to plan construction financing win. Those who are best prepared will find the best construction loan

The planning of the construction financing needs time and muse, in order to step in the best way prepared into the search and negotiation phase. Because before the first contact with a bank, a broker or with a provider of building land, construction services and real estate, the actual financial concept should be in place. Only so prepared you will be able to ask the right questions to find the best financing partner. And only in this way will you know, even before you start looking for a building site or real estate, how high the costs may be in order to continue to live financially carefree. Again, depending on this, the region, location, and amenities are. The individually perfect planning of the construction financing is thus always also the question of the employment, which you are ready to bring in. Here are a few tips on what you should take into account.

The honest cash is always at the beginning of the planning of the construction financing

The construction loan will accompany you for a very long time in the vast majority of cases. 30 to 40 years is not uncommon there. That's why taking on too much risk right at the start of this long is a big risk. Therefore, at the beginning of your deliberations, you should take a cash-check to see what you and your family currently need for living. This includes

  1. Monthly living expenses (from food to furnishings, from technical equipment to maintenance costs)
  2. The fixed charges that have to be paid monthly for insurances, rent or. Housing expenses, private retirement savings arise
  3. Average monthly expenses for your leisure time (from hobbies to vacation trips, membership fees and cinema, theater, concert and sporting events)
  4. The most important amounts you need to keep your social life intact (inviting friends, weekend outings together, and other activities)

Right, this list alone is already a big task. That's why we recommend starting it together with your tax return. Because you already elicit many costs as part of your tax documents. And if you keep a budget book at the same time, you will soon be able to estimate your annual expenses for the items listed quite accurately. Here's how to figure out your actual monthly expenses. The most important basis for a secure planning of construction financing.

Fundamental to planning construction financing: your liquid assets and your available assets

A truism in advance: the more equity you bring, the safer and the cheaper your construction financing will be. That's why you need to comb through your accounts, investments and stocks as well as look for ways to possibly save money in parallel with construction financing. Of course, you may be interested in seeing if you can get a loan or two from family members interest-free. Your equity has a double effect: 1. Will the interest rate for your construction financing more favorable and 2. You will be debt free sooner.

The lower the loan, the lower the interest rate, which is why it is particularly important to have your own money saved up. Depending on the amount of the loan, even 0.2 to 0.3 percent higher interest rates over a long term can cause five-digit additional costs. From a 100% loan, thus from a full financing without own capital funds is to be advised against in the most cases. Exceptions confirm the rule, which can be well served by a combination loan. But the usual annuity loan should always be backed by equity capital. So you play it safe that you are faster debt-free and can save at the same time much money, if you strive for a very long term of your building loan from safety considerations. After all, this is always the best choice in the current low-interest phase.

Location, location and location play a decisive role when planning construction financing

How you can live depends more and more on where you want to live. So the space requirement plays certainly a substantial role, if today purchase and/or. Construction prices depending on location and region between 2.500,- up to 10.000,- euro and more per square meter. Is the rural area an alternative and does it keep the time for commuting to work in check. Or do you absolutely want to buy in one of the prospering metropolitan areas, where supply is becoming increasingly scarce and prices are rising as a result?? So it can in munich z. B. Quite possible that you can rent in the future in the comparison rent to the real estate purchase in the long term cheaper. This is currently only the case in very few locations in metropolitan areas. But a slightly rising tendency in favor of the rent is to be observed.

The location also plays another central role. Construction financing banks look at the location very carefully. You do not want to take a risk today. Thus it can occur the case that a favorable real estate will not finance. Because the risk of a decline in value is too great. But these are currently only isolated cases. If you are determined to move to the country and have the appropriate equity and creditworthiness, there are always ways to do so. That is why it is so immensely important to be clear in advance about your dream home,. But also about which maximum compromises they want to make (be it in urban quality of life, in commuting time or the other way around in giving up rural advantages like peace and nature).

In addition: the situation decides on the height of the baufinanzierungs-nebenkosten, which you can finance NOT with a baufinanzierungskredit but with own means must pay. These additional costs usually vary considerably from state to state.

When planning construction financing, special emotional factors play a role

The recommendation: apart from an honest listing of the expenditures and the money available at the end for the monthly rates of the construction financing a listing of the housing desires as well as the maximum compromises which can be made is advisable. Because only if you are clear in the financial as well as the emotional planning, you will have a lifetime of fun and satisfaction in the property you use yourself. Just as a city man will waste away in the country in the village, humans, to whom nature and natural living environment are particularly important, in a terraced house settlement in the speckgurtel of a metropolis possibly over short or long unhappily become.

Keyword old-age provision: from today's point of view, it is a fact that pensions are by far not as secure as assumed 10 years ago. If you do not make private provisions, you may have financial problems in old age. Therefore, the subject of old-age provision is also part of the emotional aspect. The own real estate remains an important component, in order to remain financially secured after the working life due to the current situation on the construction financing market (stick word: residential real estate credit guideline) one must become clear already in younger years, whether my own real estate wants to acquire. Current laws now make it impossible for many in their late forties to obtain construction financing on the premise that it must be paid off in full by retirement age. That's why you have to get clarity already at a young age.

Conclusion: planning the construction financing the earlier and the more exact the better the result

Individually tailored construction financing – but also finding the perfect property – depends above all on your ideas and options. If you know exactly,

  • How and where you want to live
  • Which own funds you have available
  • What monthly charges you can enter without problems
  • And how high the maximum purchase amount of the real estate in sum of credit and own means may be

You can start looking for real estate and at the same time start talking about planning the construction financing. But do not rely only on your house bank. Use also the possibility of speaking with bank-independent construction financing mediators such as ACCEDO AG. Unlike many banks, they can offer you offers from over 350 german banks and also know what the perfect mix of credit subsidies, bank loans and riester housing and home savings contracts can look like.

No matter how you look at it: who wants to finance future-proof, should bring own funds into the construction financing.