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Debt relief through Riester building society savings
Debt relief through Riester building society savings

Video: Debt relief through Riester building society savings

Отличия серверных жестких дисков от десктопных
Video: Debt Relief Solutions: 5 Different Options 2023, January

Debt relief through Riester building society savings is possible. Owners also benefit from Riester allowances and tax benefits. And thanks to the state subsidy, they start retirement free of debt.

The children will soon be out of the house, everything is going according to plan, and the property should be debt-free until retirement? With the capital from a Riester home savings contract, you pay off the remaining debts on your home when you retire (at the start of the payment phase). It doesn't matter whether you built or bought your house before or after 2008.

Make full use of residential riester funding

A 56-year-old owner of a home, married, would like to save a little until retirement - the best thing would be for the state to help financially. His LBS advisor recommends that he take advantage of the state resident grant - including bonuses of 175 euros for himself if he pays 4 percent of the previous year's gross amount minus the bonus. If his wife signs his own contract, she can also receive 175 euros. If she does not receive her own income, she is considered to be indirectly entitled to allowances through her husband and does not even have to make her own savings contributions to secure the allowance.

Advantages for owners

  • You owe your self-used property with the credit from the Riester home savings contract that you previously transferred to a new Riester contract.
  • Use the low-interest, unsubsidized home loan for renovation or modernization.
  • The purchase of a service apartment or permanent housing rights in the retirement home is also encouraged.
  • Subsequent taxation is not a problem, since the personal tax rate in old age is usually lower than at the time of employment.

Debt relief with Riester savings: example

Would you like to debt-repay your home until retirement begins? The example shows that you should quickly sign a Riester building society savings contract.

Saving: The 56-year-old doesn't hesitate for long. "Just don't put anything on the back burner. Otherwise I give away allowances and tax benefits,”he thinks and signs an LBS-Riester home savings contract for over 54, 000 euros. He saves that until he retires in 10 years. "It all comes together quite a bit, " he says happily: namely several thousand euros.

Tilgen: The homeowner has his goal clearly in mind: At the start of retirement, he would like to use the savings in the amount of more than 21, 000 euros from the Riester home savings contract to debt his home. However, he has to tax the subsidized contributions and allowances. "No problem, " he knows. “The personal tax rate is usually lower in old age than at the time of employment. As an owner, I also benefit from the rental savings. It is equivalent to an additional pension."

Modernize: What remains is the cheap unsubsidized home loan of around 32, 000 euros: He uses this to modernize his house - thermal insulation, new heating and windows.

Investing: Wohn-Riester offers even more alternatives: Maybe the home saver would like to invest the money in buying an age-appropriate apartment. Or later acquire a service apartment or permanent residence in a retirement home.

Get started: The benefits decrease the later you start. So don't hesitate too long. You have to conclude the Wohnriester building society contract up to 60. Ask your LBS or Sparkasse advisor how you can optimally put your package together.

Two contracts for the optimal use of the funding

"To take full advantage of all government subsidies, you have to conclude two LBS building society savings contracts, " advises LBS expert Hermann Litz.

Bonus & Allowances: Housing premium, wealth-related benefits (vL) and the employee allowance flow into your LBS building society savings account. In order to

finance your home later. In addition, you can use the building society savings to convert, expand, renovate or modernize your house to suit your age.

Residential Riester: Your Riester savings and allowances come on a separate LBS-Riester home savings contract. You only use this money to buy or build a property you use yourself. You can also reschedule or redeem yourself - under certain conditions.

Two contracts: With two LBS building society contracts, you remain flexible in the saving, allocation and repayment of your building society loan.

Debt relief with Riester savings: sale

Anyone who sells or rents their property must pay tax on the status of the housing promotion account. But there are exceptions:

Rent: You have to move for professional reasons and can therefore no longer use your apartment yourself? Then you can rent them for a limited time in your absence, but you have to move back in at the age of 67 at the latest.

New property: When you sell your house, the best way to invest the proceeds is in a new property. If you acquire new home that you move into within four years, you can keep the state allowances.

Savings contract: Alternatively, you can pay the subsidized amounts within one year to a Riester savings contract that runs in your name.

Divorce: Subsidies are to be repaid by taxing the subsidized savings and redemption payments if the saver who received the subsidy no longer uses the property himself.

Important: If contributions equal to the amount of the housing grant account go to another property you use yourself or to a Riester pension plan, the repayment is not applicable.

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