Real estate prices have only known one direction for years: steeply upwards. The corona crisis fueled this effect, so that the prices for apartments and houses away from the heavily demanded metropolitan areas are climbing. This makes buying more difficult, especially for young buyers who have painstakingly saved up some money. Because: The equity is just enough for the ancillary purchase costs, i.e. the real estate transfer tax, the broker and the notary. There is hardly any equity left to reduce the loan amount.
But just a few thousand euros can make a considerable difference, the experts from “Finanztest” have calculated. Because the banks can pay for the full financing and thus the increased risk of a loan default. Buyers pay up to one percentage point more. That is a few thousand euros with the high loan amounts.
In one example, the financial testers do the math: For a property that costs 400,000 euros, a buyer takes 370,000 euros in one invoice and 360,000 euros in the other. The difference of 10,000 euros has a big impact. Because the buyer can save almost 32,000 euros in interest through the higher equity share with a 15-year term at Allianz, for example, and around 26,000 euros at Berliner Volksbank. At the Berliner Sparkasse, there are still around 12,000 euros in interest savings.
For example, the financial testers advise obtaining and comparing several offers if there is very little equity. Another tip from the experts: secure a long fixed interest rate. The low interest rates won’t always stay that low and can quickly make the property unaffordable.
You can find more tips in our photo gallery. You can get the entire “Finanztest” guide for a fee.
Source From: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
