A private holiday home within Germany can not only serve as an excellent holiday destination, but it is also feasible to use the property as a retirement home. The financing of the desired object is possible with the help of a loan.
Your own holiday home offers several advantages, such as rental income for a rental.
The purchase of a holiday home offers itself for several reasons. For example, such a property is an excellent investment . Of course, this is especially true when the interest level at the time of purchase is at a very low level.
In addition, it is usually the case that in a holiday home, which is located in an attractive holiday area, can be expected with an increase in value.
Furthermore, it is possible to rent the holiday property so that the resulting income can be used for loan repayment. If the house is only rented and not occupied, the owner usually benefits from corresponding tax benefits.
If, on the other hand, it is intended to use the holiday home again and again for a relaxing, restful stay, then you will also benefit from the fact that your own holiday costs will be significantly less expensive. After all, this is how the expenses for a holiday home are saved in this way.
The purchase criteria of a holiday home, for example, includes a good infrastructure.
However, the purchase of a holiday home should be well considered, so that the purchase is really worthwhile. This includes, for example, a beautiful location, in a suitable area.
Furthermore, it is also about a good transport links and a good infrastructure to pay attention: The best are located about doctors and business nearby. This should especially be the case when the property is used as a retirement home. Likewise, one should not let it take a closer look at the building fabric of the house.
In addition to borrowing, equity is required when buying a holiday home.
To finance a holiday home, banks usually also require equity capital. Here, as a rule, up to 20 percent of the purchase price plus ancillary costs are assumed. The additional costs include, for example, the notary costs and the entry in the land register.
In addition, it is also possible, to some extent, to include the income from renting the house into the financing. Here it is generally assumed that the holiday property should be rented for 120 days per year so that its ongoing maintenance costs can be paid.
Of course, it is also important to think about spending on necessary insurance and maintenance.
Among the other requirements to get a loan for the house, among other things, a good credit rating .
In addition to adequate equity, however, it is also necessary to meet the various requirements of banks for lending . This includes, for example, a safe, regular income in a corresponding amount. Furthermore, the banks place a high value on a good credit rating and a positive information. Similarly, the purchase of a holiday home within Germany usually requires a German checking account as well as a residence in this country.
Real estate loan
For the purchase of a holiday home is usually an annuity loan or a fixed loan.
A real estate loan is usually used to finance a holiday home. In most cases, this is a so-called annuity loan.
Here, the borrower always pays a steady monthly installment throughout the life of the loan . However, the interest rate and the amortization portion are not always fixed. So they change gradually. By taking installment payments, the borrower always begins to pay off the loan. As a result, the share of interest rates is slowly decreasing while repayments are rising.
Instead of an annuity loan , however, it is usually also feasible to opt for a fixed loan with a repayment compensation. In such a case, the borrower even monthly constant rate to the bank paid, but to implement them only from interest and not from a repayment together. The payments relating to the repayments are, for example, paid into a life insurance policy . At the end of the loan term, the accumulated amount from life insurance then repays the loan amount.
In this way, it is possible to earn a return using the repayments. However, the interest payments are usually slightly higher than the annuity loan. The background for this is quite simply that the repayment of the loan also takes place only at the end of the term of the loan agreement.
What is important about the fixed loan is that the return on life insurance or a similar investment must be so high that it is sufficient to pay off the loan amount .
In many cases, a follow-up financing is necessary when buying a holiday home.
Since the purchase of a holiday home usually requires a very high sum to be financed, it is usually not possible to pay back the entire amount in the contractually agreed term during the debit interest payment. Thus, a residual debt remains here, which must be covered with a follow-up financing.
The follow-up financing itself can take place either at the same bank or at another bank . Accordingly, it is possible here to look for a cheap deal to save your own wallet.
Compare loan offers
If you compare the various loan offers of the banks well with each other, can save a lot.
Before a loan is taken out to finance the holiday home or take over the remaining debt, it is therefore important to compare the various offers from the banks. Because these are often very different. For example, even a few percentage points difference may already provide several hundred euros in savings.
When comparing the loan offers, it is advisable to use the APR for a comparison. Because only here all the fees of the loan are included, which is not the case for example with the nominal interest . As a result, the annual percentage rate of interest also makes an excellent comparison.
In addition, most banks offer a variety of special services when granting a real estate loan. These include, for example, free special repayments, a variable interest rate and the suspension of a monthly emergency rate. On the one hand, this makes it possible to save a lot and on the other hand, you can make your own financial situation much more pleasant when needed.
For a quick, uncomplicated comparison, online loan comparisons are ideal. At first, it is only necessary to enter some important data and the suitable credit offers of the various banks appear. Accordingly, the different offers can be compared easily and quickly.