Construction financing: More than one in three Germans owns a home savings contract – but not everyone wants to build a house or buy an apartment. No problem, because the possible uses are much more varied than most people realize. For example, tenants can also use the interest-safe building savings loan to a certain extent.
Saving equitySaving equity
First of all, the building savings contract offers the possibility to save equity capital. The state and employers even help with this, for example with the housing construction premium and the capital-forming benefits. Once the saver has made the minimum savings – usually 40 percent of the building society sum – and reached a certain valuation figure, he or she can obtain a building society loan. This makes it independent of the mortgage interest rates, which have just started to rise again. The only condition according to the law on bausparkassen is that the loan must be used for "residential purposes" Use it, that is, to acquire, maintain or improve buildings intended primarily for residential purposes. But what exactly counts as a housing measure now?
Construction and purchase of real estate
The classic use of a building savings contract is to build a house or buy real estate and land. The building saver can also finance the initial planting of the garden, a garage or even a weekend home, provided it is suitable for permanent living. It is also possible to use the loan for the architect's costs or to cover incidental purchase costs, such as land transfer tax and notary fees, which can account for up to fifteen percent of the purchase price.
Modernization and energy efficiency
Measures for modernization, such as a new bathroom or a new coat of paint, are also residential, as is everything that contributes to improving the energy standard: New windows, better insulation or solar installation on the roof.
Additions and renovations
The bauspar loan can also be used for a conservatory, roof conversion or a carport. It is only important that the purpose of the building society loan is residential. This means that the measure must be firmly connected to the property and usable all year round. So while the customized built-in kitchen is considered residential, the free-standing sofa cannot be financed with the home savings loan. Consumer goods such as cars are also excluded from financing.
Another, not immediately obvious, purpose for the bauspar contract is the possibility to pay off other loans for housing construction. This use makes sense if the interest rate of the building society loan is more favorable, especially since unscheduled repayments are possible here at any time.
Tenants and landlords
The building savings contract also offers uses for tenants and landlords. In consultation with the landlord, tenants can use the home savings loan to upgrade the apartment. It is possible to replace the heating system or install an alarm system to prevent theft. LBS West, for example, offers a loan limit of up to 15 percent.000 euros. Landlords have the possibility to finance and renovate their property by means of the bauspar loan. Additional advantage: Interest and accruing fees are deductible as costs from income tax.