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31 10 2013
The financing – an important step to your condominium

Many people aspire to home ownership, either to live in it yourself or to buy the condominium as an investment and then to rent it. At the latest, when a property is on the shortlist, you should clarify the financing. In conclusion, the acquisition of real estate property is for most people one of the biggest investments of their lives. When the savings are not enough, it is necessary to get a loan for the financing. Here it is important to decide, with which bank the desire for home ownership is realizable.

Provide a cost overview

The next step towards a solid financing is to gain an overview of all costs of purchase. Besides the pure purchase price there are also other charges as the real estate transfer tax or notary fees. There can also be other costs such as for the relocation and renovation. After that you should create a list of your own monthly income and expenses in order to know how high the monthly payment can be by the loan repayment. Finally, one should consider how much savings you can use for the purchase of residential property. For the financing of a condominium, it is advantageous if a certain foundation of equity exists. To take 20 percent of the total cost out of your private savings is considered advisable but also with less equity the financing can be possible. According to a recent survey by TNS Infratest property buyers in Germany insert an average of even more than 40 percent equity.

Cheap interest rate, favorable financing

The current interest rate conditions allow very attractive financing. Depending on the loan amount, initial loan redemption and duration of the fixed interest building loan the interest rates are between two and four percent, as low as never before. Along the interest payments there also is a monthly redemption of the loan, which is usually between one and four percent of the loan amount. Interest rate and loan redemption make the monthly drain which occurred through the buy of the property. If this is within the previously calculated budget, than nothing stands in the way of purchasing a condominium.