Real Estate is a good retirement

Instead prefer to hire their own home financing

The money for better housing in their own four walls investing is the better solution than a lifetime to pay rent.

About 20 years or longer has paid rent, has only acquired legal residence. Nothing more. Who is Real Estate has created has made a careful financing as much output as the tenant. However, in contrast to the tenant is then full home ownership. With a well thought-out project and construction is a solid little later for the preservation of the house to pay. Similarly, the incidental living lower than in a rented apartment. There are houses, even with the surplus energy to work. All this is possible without the modern building, which in addition to expensive to purchase even more costs in the current holding. A tenant on the other hand, must continue to rent residential and high-pay charges.

A non-equity financing is dangerous

There are models for residential financing without equity. Of this, however, is discouraged. The repayment rates are very high. Even people with a very large income, the rates which can cover loosely, this model is not recommended. No man can know whether this income always remains.

As a rule of thumb should be at least 20 percent equity exist. With small income, a longer Ansparphase plan. Early start on saving and it is advisable to bring success. To the load as low as possible, it is advisable that all existing insurance companies to analyze. Many insurance companies are not required and most are in the same power even more cost effective to have. Most Baufinanzierer offer free assistance in building the equity and, also free, as a service to optimize insurance. With the money saved can equity usually without additional burden to be established.

Savings as a financing of a home is bad

The interest savings for a loan is relatively low. Nevertheless, financing a home with an expensive Bausparen venture. Before the credit for the mortgage lending is the accumulation of capital with a building contract. Interest rates are quite low. So does the Ansparphase long. In the building contract is usually seven years. Often it takes time to allocation for more than seven years. In the calculation of credit costs are not insignificant fees for the building contract to be considered. The FOCUS online real estate comes in his article "hardly worth the savings" to the conclusion: "The bottom line, that is state-sanctioned fraud savings."

Healthy Credit - Real Estate secures living standards in old age

Most banks expect the equity to finance the property with one. That means 80 percent financing. A much cheaper alternative is the capital profitably, and in the property with 100 percent financing. They serve the 20 percent equity as collateral for bank financing until the end of the loan repayment. The income from the investment will generally serve as a partial repayment of the building loans. If the loan repaid, the equity is once again free and can, for example, for retirement should be used.

An intelligent building and a solid construction ensure low or no maintenance costs for the house, and the charges may eventually disappear, or even the house provides even more Energy Saving Appliances. This secures a home owner, despite lower incomes in retirement a much higher standard of living than if he had to pay rent.