The assets Question: rental real burden savings contracts such as lead

Fixed loan and savings contracts are negative for differences due to different interest rates. Compared to another financing they lead to considerable disadvantages.

The Germans when it comes to money, two preferences. One love is home savings contracts, and the other love is real estate. The hunt for low-interest rates is a national sport, and the hunt for income-related expenses is a widespread disease. But the understandable desire for skimmed interest and tax benefits should not obscure the fact that savings contracts and real estate are pure poison in certain cases. Especially “sweeping” action shows the mixture at investments where both contracts are linked together, for example in rented properties. Apartments with the decent rental return and solid financing are the sky, but over-priced real estate and savings contracts are hell. This is evident in the following example.

The president of a court, 50 years old, and the principal of a high school, 48, earning 150,000 euros per year. Of these, one third goes to the state treasury. In these duties, it is no wonder that the two officials have “intense” search for ways to reduce the high tax burden. has shared are the academics who place great emphasis on safety and soundness, with a broker who sold them two condominiums a year ago. The two properties have cost with the usual incidental costs about 600,000 euros, are in the same building and are each 90 square meters. The monthly rent is ten euros per square meter so that investors are taking about 1,800 euros per month. The returns are indeed mediocre, as the ratio of income account shows the purchase price: 180 square meters by 10 Euros times 12 months times 100 divided by 600,000 euros resulting 3.6 percent. That’s neither fish nor fowl because such results are also achieved with ten-year bonds.

The 3.6 percent of homes are most likely an “overoptimistic” result because repairs will incur first in ten years at the latest. In addition, it should be noted that the utilities ‘lost’ fees are not recouped when selling. Rounding out the questionable investment by funding. The two officials had with the purchase of the objects “only” 100,000 euros in the money-box so that they have “confidence” turned to their local bank. There, investors enjoy for years as Fixangestellte as the Austrian says the absolute best reputation. Consequently, the financing of the real estate was not a problem. Now, however, investors have a problem because the loan officers proposed financing, which is a medium-sized hail.

The man sold to investors in cooperation with the representatives of the friendly Bausparkasse a fixed loan that is to be replaced in seven years by a building society loan. The conditions of this “dream solution” seem at first glance, impressive because of the hard credit costs only 4 percent, the subsequent savings loans will be even for 3.75 percent, but on closer analysis shows that the effective cost is nearly 5 percent.