Seldom has it been possible to purchase property for retirement provision on such favorable terms as it is currently. As a result of the financial and debt crisis, central banks around the world were forced to cut interest rates. You can benefit from this today if you are planning to buy a property as a home.
Having your own home brings you a number of advantages in old age. The property is stable in value and largely protected against inflation. When you withdraw, you can save on rent costs with your own four walls, which today make up a large part of the monthly budget of a private household. In times of low interest rates, real estate financing is available on very favorable terms. A quick repayment and, in connection with this, a quick freedom from debt sound tempting. However, you should analyze your income and wealth situation before making a decision in order to rule out later financial bottlenecks from the start.
Compare interest rates
Internet platforms such as hypostar.de can help you compare interest rates from individual providers. It is helpful to consult a professional advisor to calculate real estate financing that also takes your personal situation into account. The amount of the loan depends largely on your own contribution. Experts advise between 25 and 30 percent of the loan amount. If this proportion is not reached, the financial means for additional costs and unpredictable expenses will ultimately be lacking. You must also take into account any changes in the income situation in the calculation. A job change can, for example, result in a loss of income.
Before you buy the property
You must also take into account that you have different obligations to buying a home than a tenant. You have to take out insurance for the building yourself, and you, as the owner, bear the costs for maintenance and renovation. In the case of decisions that are made in the municipality, such as road renovation, you as the land owner are held responsible by the authorities. Of course, there are no high rental costs and dependence on the landlord. The quality of life in your own property is higher and with appropriate income, buying property at the current interest level is a good choice.