What is safe today? The financial markets are changing. The professional concerns change. The previous laws of almost all forms of investment are changing. The real estate market does not change. As before, own real estate offers security as an important component of wealth planning and retirement security. Owning your own property offers independence (after 10 years, you can sell your property at any time without incurring taxes), a high utility factor (for your family, for hobbies, for recreation) and predictability (annuity loan, secure calculation basis, long-term financial security). Contrary to the widespread opinion that real estate prices are no longer affordable today, real estate is affordable in most german regions and cities and is clearly superior to renting in terms of the cost-benefit factor.
Do not wait any longer, now into your real estate security start!
If you believe the relevant studies, the rents – but also the acquisition costs – will continue to rise in the coming years. Even if the interest rates for construction financing remain as favorable as they currently are in the medium term, the cost of housing will continue to rise. To counter this tendency – and at the same time to take advantage of the particularly favorable construction money – you should act now if you want to invest in real estate security. Geerade in large cities it is the own real estate, which can be seen as cost brake in the future. If one compares namely the purchase prices per square meter in europe with those in germany, then germany must be regarded on the average as (still) relatively favorable purchase country for real estates.
Pent-up demand for real estate ownership
Studies on the european wealth distribution make it particularly clear. Since germany is still a country of the tenants (only in switzerland there are in the european comparison percentage-wise still more tenants than in germany), the german has far fewer fortunes than z. B. The italian. Sole reason: in italy, 73 percent own the house or apartment in which they live; in germany, this is only 52 percent. Particularly striking: germany is lagging behind, especially when it comes to condominiums (the preferred urban type of housing). Only slightly more than 6 percent of property owners live in their own condominium (whereas 25 percent live in a single-family home – lt. Allensbach institute). Therefore one should think straight in this country about a purchase, if one would like to develop fortune and secure on a long-term basis, because real estate security is a determining factor for the own fortune safety device.
Real estate security also for the next generation
If you think today about tomorrow and thus about the security for your children, you are also well advised to own real estate. From a financial point of view, nothing can really replace a paid-off home in terms of savings rate and financial planning. And your own children can only benefit; either because the owner-occupied property allows them to save on rent, because they can simply sell residential property in normal times, or because it can serve as welcome collateral when loans are needed. Not to mention the emotional value that the owner-occupied four walls offer you.
The german housing market has some catching up to do
It is now clear that there is a shortage of living space, especially in conurbations. And this will not change in the foreseeable future. For this reason alone, it is appropriate to act now if you live in one of the metropolitan areas and are thinking about property. Due to the extremely scarce supply of real estate, it will become even more difficult to find suitable condominiums, single-family homes or building land in the future. If one considers the price development and sees the current particularly low interest rates for a construction financing, then there is no better time than now.
Secure the dream now and finance with real estate security
Due to the favorable building money and in relation to the own financial possibilities one should make today a kassensturz and discuss the possibilities with an experienced baufinanzierungsberater. Who z. B. 200.000 euros with own means can serve, that becomes a construction financing credit of 300.The newcomer will not only be able to obtain EUR 000 without any problems, but will also be able to obtain financial security with long-term financing and correspondingly high repayments; and this at monthly charges that will in all likelihood be below the monthly rent payments.
Nevertheless: the best credit cannot be found so easily; it is not only the most favorable interest rate that counts. It is also about
- Repayment rates,
- Special repayment possibilities,
- Change of installments during the term
- Combinations of subsidies, building society savings, etc.
And last but not least about the real estate value and its future development, which in turn is influenced by location, infrastructure and region. We recommend contacting a bank-independent construction financing broker, who can provide you with full advice free of charge and will accompany you on the way to closing the loan, so that you can sleep soundly in the future.