Financial returns are an advantage for real estate buyers
Tenants require fewer financial reserves than property buyers. Anyone who concludes a new rental agreement undertakes to transfer the agreed monthly rent including ancillary costs on time. In addition, it is customary to pay a deposit. This may not exceed three times the cold rent. Apart from that, you as a tenant do not have to raise any additional capital.
The situation is different when buying an apartment or house. The best time to buy a property cannot be determined across the board and depends on various factors. Prospective buyers should consider the following when making their decision:
- personal life situation and planning
- financial circumstances
- Real estate prices and offers
- building interest
If you have decided to buy your own home or an apartment, you should look for suitable financing as soon as possible. There are numerous banks on the market that offer loans on different terms and costs. Equity is an important factor in real estate financing. In general, the higher the equity, the more favorable the loan conditions are.
The Baufi24 experts recommend that borrowers who buy a house or apartment they use themselves have an equity share of at least 20 percent of the purchase price. As far as possible, however, higher quotas of 30 percent and more should be aimed for. Because every euro that you spend out of your own pocket on real estate financing often gives you real benefits.
Higher self-financing tends to mean:
- a simpler loan commitment from the bank
- Lower building interest, since the risk of non-payment for the bank is lower
- faster debt repayment
- better conditions in the event of an emergency foreclosure sale
The following therefore applies: the higher the purchase price of the house or apartment, the more equity capital is recommended. If you currently have no financial reserves, buying a house at a later date makes more sense. It is currently very difficult to obtain financing without equity.
If you need the right construction financing for a house or an apartment, then don’t hesitate, arrange one with Baufi24 free and non-binding appointment.
With the Mortgage Calculator from Baufi24 you can calculate your construction financing easily and free of charge and run through various scenarios for your financing.
thanks to the purchase price atlas from Baufi24 you will know in a few seconds how high the average square meter price is in your desired region.