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Building society contract: Not only useful for home builders
Building society contract: Not only useful for home builders
Video: Building society contract: Not only useful for home builders
Video: HOME BUILDER SECRETS | What they don't want you to know or tell you! 2023, February

Traditionally, a home savings contract to finance your own home is concluded. However, there are other interesting sensible ways to use the loan.

The costs that can be financed with a building society contract include, among other things, all expenses that are connected in some way with the construction process. This includes not only the building costs, but also the planning costs, such as architect and structural engineer fees, the development costs, for example for water inflow and outflow, for energy supply, for streets and sidewalks, as well as the costs for the initial gardening, the fencing, the retaining wall, the terrace and so on. Garages, protective structures and all fixtures that are permanently inserted into the building can also be financially financed through a building society contract - for example, the fitted kitchen, bathroom furnishings, wash basins, wall units or the cabinet fitted by a carpenter.

Modernize with a building society contract and save energy

Every building has to be modernized and repaired at some point. Builders are therefore well advised to make early financial provisions in order to have sufficient funds available or, if there is insufficient equity, low-interest construction loans. Modernization measures are a sensible application for a building society contract.

The savings for a home savings contract are tax- or premium-privileged, the loan interest is stable and low. In addition, the savings process can be designed so that the wallet is not burdened. A home saver who is entitled to benefits (vL) and housing premiums can use the following sample calculation: The employer pays 40 euros in benefits per month, and you save an additional 43 euros per month. In this way, almost 11, 000 euros can be saved in a home savings contract in nine years, which has been concluded through a home savings sum of This is an effortlessly formed basis for comprehensive repair and modernization measures.

Bausparen und bauen
Bausparen und bauen

Starting your own family and building a house - a home loan contract can make this step a little bit more difficult.

Photo: MEV

Building savings also makes sense as a tenant

As a tenant, the cheap loan can also be used sensibly through a building society contract. With the consent of the house owner, you can use it, for example, to carry out modernization work such as bathroom installation or renovation, tile work, laying electrical, gas and sanitary lines or installing new windows and doors. To secure home savings loans that tenants use to modernize their homes, the state building societies provide a guarantee from a public-law bank, if the tenant does not have other suitable collateral.

Buy a property with the building loan

Another application for building society contracts is the financing of a building site. However, it should be noted that the property must later serve to build an exclusively or predominantly residential building. It is also a prerequisite that the property is also approved as a building site - for example, in an area for which a legally binding development plan exists. On the other hand, no building land is building expectation land, i.e. a piece of land as a speculative object that one hopes will be declared building land.

Repay loans with a home loan contract

A home loan savings contract can not only be used to buy a new building or to convert it, but also to repay loans that have been taken out in connection with construction financing. It is only important that the loan is used to finance housing measures. It makes sense to conclude a new home savings contract when you borrow to save this amount. After the debt rescheduling, the cheap home loan usually leads to a significant relief in interest rates and mitigates the risk of rising interest rates for the follow-up loan.

Finance real estate abroad

If you dream of a retirement home in the sunny south, you have the opportunity to use a building society contract to get a little closer to your goal. The LBS helps with the financing of real estate abroad, including the purchase of holiday homes. The Bausparkassengesetz allows this application for building society contracts in principle. This means that it allows home loan loans to be secured by ordering mortgages on a property in some European countries. The building society can then dispense with the usual guarantees provided by credit institutions and, when securing credit claims, can limit itself to the entry of mortgages or mortgages on the foreign property. If you have specific plans, you can inquire with your responsible LBS whether they also offer direct foreign financing. Otherwise your own four walls in Germany usually serve as security.

Ferienhaus in Kroatien
Ferienhaus in Kroatien

With the home savings contract for a holiday home abroad. This is also an application.

Photo: MEV

Support commercial construction projects

Financing commercial construction projects with the help of building society savings contracts is possible under two conditions: firstly, the objects must be located in areas that are used for living, and secondly, they must be intended to contribute to the supply of these areas. This applies, for example, to the construction or expansion of commercial, craft and service companies in new or existing housing developments or neighborhoods if the quality of living improves. In the case of mixed-use properties that are mainly used for residential purposes, the building societies can also finance the commercial part. In the case of predominantly commercial properties located outside residential areas, however, only the financing of the part of the building intended for residential purposes is permitted.

Acquire residential rights with the building society contract

In addition to the previously mentioned possible uses for building society contracts, the use of a building society contract, which is not harmful to the premium, is also permissible and sensible for the acquisition of "rights to the continuous use of living space". This includes in particular the financing of living space in old people's homes or nursing homes.

Renovate the legacy with a building society contract

According to market surveys by the state building societies, around a fifth of German property owners have already inherited their own four walls. Most of these are buildings with an average age of 35 years. It is therefore not surprising that almost two thirds of the inherited and subsequently used property must be thoroughly modernized and renovated after the transfer of ownership. On average, around 35, 000 euros are invested in this. To finance these measures, apart from equity capital, building savings funds are primarily used. A good third of those surveyed use the low-interest and therefore sensible form of financing a home savings contract - especially since this can also be used to pay out co-heirs.

Building society contract: A sensible and generous gift

Few building society savers know that a building society contract can also be given away: whether for the birth of the grandchild, for school graduation or for a wedding - friends and relatives are happy about the sensible asset module for home financing.

In such a case, a home savings contract is concluded in the name of the recipient, who, upon receipt of the gift, puts the contract into effect upon approval. Friends, acquaintances and relatives can then make deposits in the form of monetary gifts on the recipient's building society savings contract and thus contribute to future wealth creation in the form of home ownership.

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