Bausparen – This is a construction contract. First you save about half of the amount, and then you get the other half in the form of a loan with a fixed interest rate.
The Home Savings Agreement (Bausparvertrag) is an effective way to help you realize your dream of owning your own home quickly. It doesn't matter if you want to build a new house for your own family or buy an already rented property as an investment. However, not every home loan and savings contract is created equal.
What is Bausparen?
Objectives:
- modernization and repair
- building
- покупка недвижимости
Example
I want to buy a house!
Price – 400 €
To conclude a mortgage agreement, you need:
- Pay fees and additional services - about 10% of the cost.
- It is advisable to make an initial payment of 10-20%, which can reduce the interest on the mortgage
TOTAL: you need at least 40 €
Option 1: I save it myself – 200€ per month – 17 years
Option 2: BAUSPAREN - 200€ per month
40% of the amount – 16€ is available through 7 years
60% of the amount – €24 – is provided by the building society
How does Bausparen work?
I do everything myself!
Saving money for your housing in Germany is not an easy task. Of course, you can conclude a mortgage agreement. But even for this you need to have at least 10% of the transaction value. The process of accumulating the required amount may be delayed for 15-20 years.
Let's unite!
There are many people in Germany who also save money and also want to buy a house.
Imagine that you are teaming up and helping each other save faster.
For example:
✓ 10 people save €5 a year.
✓ In a year they will already have 50 € - and this is enough to conclude a mortgage agreement.
✓ One of the team can buy an apartment, continuing to pay further into the common fund.
✓ In a year, the next one will be eligible to buy, and so on.
Let's leave it to the professionals!
In Germany, the organization of such a building society and the regulation of the process are carried out by the so-called “construction funds” - Bausparkasse! Today they unite hundreds of thousands of investors. Clients investing money receive their housing on average 1,5-2 times fasterthan with conventional savings.
1
Накопление
✓ Conclude a BAUSPAR agreement and open an account with a construction company
credit society.
✓ We determine the amount of savings 30 - 50%, term and monthly installment.
✓ We make regular payments to our account.
2
Distribution
✓ You have the required savings amount on your account.
✓ You receive the remaining amount from the company 50-70%.
✓ Conclude a Mortgage agreement and buy a property.
3
Loan repayment
✓ Repay the loan monthly
payments
✓ The amount of monthly payments (loan body + interest) does not change
✓ All conditions were fixed at the stage 1
Pros and cons of Bausparen
- Guaranteed interest rates that provide stability and predictability for investors.
- Financial incentives: In some cases, Bausparen customers may receive additional financial incentives from the state. For example, the Wohnungsbauprämie (Housing Construction Premium) program.
- Reliability and safety: Bausparen is considered a reliable and safe financial instrument.
- Flexibility and availability of loans: Bausparen offers customers the flexibility to choose the loan amount and repayment period.
- Clients can use the loan to purchase, build or renovate real estate.
- Low interest rates on the funded part.
- Restrictions on access to funds: During the first stage of accumulation of funds, the Bausparen account usually does not allow you to fully manage your money.
- Limited choice of investments. Usually funds in Bausparen are invested in real estate or other reliable financial instruments.
Wüstenrot is one of the market leaders in Germany offering BAUSPAREN:
Bausparkasse Wüstenrot - one of the leading companies, was founded in 1921 and has since developed into a large financial institution.
Bausparkasse Wüstenrot offers a variety of endowment loan plans with different interest rate options and flexible terms.
Schwäbisch Hall firmly entrenched in the cooperative banking sector since the founding of the company in 1931. Today it is one of the leading providers of construction financing.
Schwäbisch Hall offers various Bausparen programs with different conditions and % rates, including government incentives.
Company Old Leipzigers was founded in 1819 year in Leipzig. It has a rich history and today remains one of the leading financial institutions in Germany. Alte Leipziger provides a wide range of financial services including investment products and Bauspar.
Bausparen Wüstenrot
1
Goal: economical accumulation
KOMPAKT tariff package – basic service package (up to 60 €)
✓ Constantly profitable and safe interest rates on loans
✓ Loan without depositing in Grundbucheintrag up to 50.000 euros
✓ Installment payment possible
✓ Free unscheduled payments (Sonderzahlungen) at any time and in any amount
✓ State subsidies
✓ Youth bonus up to 200 euros (up to 24 years old)
2
Purpose: modernization
Tariff package KOMFORT - basic service package +
✓ The lowest interest rate on a loan or the lowest monthly payment on a loan
✓ Constant hedging of % rates (the possibility of investing part
contributions to funds or other investment products)
✓ Climate bonus up to 300 euros for energy efficient repairs
3
Purpose: purchase and construction of real estate
Tariff package PREMIUM – basic service package +
✓ Financing up to 100% of the mortgage loan value
✓ Free transfer to relatives
✓ Ability to adjust the % rate or redemption fee
✓ Climate bonus up to 300 euros for energy efficient repairs
Support & Benefits
State support for housing savings:
Die Wohnungsbaupramie - 10%
- For singles up to 70 euros per year
- For families up to 140 euros per year
Capital accumulation allowance
Many employers in addition to salary
pay capital grants
(Vermogenswirksame Leistungen)
- up to 40 euros per month
Savings allowance for employees
government subsidy received by employees
if they make payments under the BAUSPAREN agreement
- For singles up to 43 euros per month with taxable annual income less than 17 euros
- For families up to 86 euros per month with taxable annual income less than 35 euros
Wohn Riester
Anyone who makes renovations to improve energy efficiency not only saves a huge amount of energy, but also benefits from a favorable living climate. You can also take advantage of possible government subsidies.
With 2024 The state-subsidized pension for own housing (Wohn-Riester) can also be used for the energy renovation of owner-occupied residential properties.
- A one-time start-up bonus of €200 for anyone under 25 at the start of their first year of contributions.
- For singles up to 175 euros per year
- For families up to 350 euros per year
- Child benefit €300 per year for each child eligible for child benefit, for children born before 2008 €185
- Tax incentives for deposits
Package comparison: BAUSPAREN Wüstenrot
KOMPAKT (accumulations)
COMFORT (modernization)
- €10 - €000
- from 10 000 €
- ACCUMULATION PHASE
- from 50%
- from 40%
- 1%
- 1%
- -
- 0,60%
- 0,5% of Bausparsumme
- 0,3% - 0,6% from Bausparsumme
- 0,2%
- 0,01%
- LOAN PHASE
- 1,75%
- 0,45%
- 1,95%
- 0,5%
- 1%
- 0,35%
- 9 years 5 months
- 5 years, 3 months
- 17 years, 2 months
- 2%
- 2%
- 1%
KOMPAKT (accumulations)
COMFORT (modernization)
PREMIUM (construction and purchase)
- €10 - €000
- from 10 000 €
- €10 - €000
- from 100 000 €
- ACCUMULATION PHASE
- ACCUMULATION PHASE
- from 50%
- from 40%
- 30% / 40%
- 30% / 40%
- 1%
- 1%
- 1%
- 1%
- -
- 0,60%
- 0,60%
- 0,60%
- 0,5% of Bausparsumme
- 0,3% - 0,6% from Bausparsumme
- 0,5% of Bausparsumme
- 0,5% of Bausparsumme
- 0,2%
- 0,01%
- 0,01%
- 0,01%
- LOAN PHASE
- LOAN PHASE
- 1,75%
- 0,45%
- 1,95%
- 2,25% / 1,5%
- 2,00% / 1,25%
- 0,5%
- 1%
- 0,35%
- 0,4% - 0,8%
- 0,4% - 0,8%
- 9 years 5 months
- 5 years, 3 months
- 17 years, 2 months
- 14 years
- 17 years 11 months
- 2%
- 2%
- 1%
- -
- -
Calculation examples: BAUSPAREN Wüstenrot
KOMPAKT (accumulations)
COMFORT (modernization)
- 50 € (up to 000 €)
- 100 000 €
- ACCUMULATION PHASE
- 55%
- 49,5%
- 500 €
- 1000 €
- -
- 600 €
- 331 €
- 601 €
- 27 690 €
- 49 500 €
- 7 years
- 7 years
- LOAN PHASE
- 1,75%
- 0,45%
- 22 310 €
- 50 500 €
- 500 €
- 1000 €
- 3 years 11 months
- 4 of the year 4 of the month
- 23 564 €
- 446 €
- 52 024 €
- 1010 €
PREMIUM (construction and purchase)
- 100 000 €
- ACCUMULATION PHASE
- 38,9%
- 1000 €
- 600 €
- 475 €
- 38 788 €
- 7 years
- LOAN PHASE
- 2,0%
- 61 212 €
- 1000 €
- 5 years 5 months
- 64 618 €
KOMPAKT (accumulations)
COMFORT (modernization)
PREMIUM (construction and purchase)
- 7 years
- 7 years
- 7 years
- 50 € (up to 000 €)
- 100 000 €
- 100 000 €
- ACCUMULATION PHASE
- 55%
- 49,5%
- 38,9%
- 500 €
- 1000 €
- 1000 €
- -
- 600 €
- 600 €
- 331 €
- 601 €
- 475 €
- 27 690 €
- 49 500 €
- 38 788 €
- 7 years
- 7 years
- 7 years
- LOAN PHASE
- 1,75%
- 0,45%
- 2,0%
- 22 310 €
- 50 500 €
- 61 212 €
- 500 €
- 1000 €
- 1000 €
- 3 years 11 months
- 4 of the year 4 of the month
- 5 years 5 months
- 23 564 €
- 446 €
- 52 024 €
- 1010 €
- 64 618 €
It is also possible to receive the following government subsidies**
KOMPAKT (accumulations)
COMFORT (modernization)
PREMIUM (construction and purchase)
- 980 €
- 980 €
- 980 €
- 3360 €
- 3360 €
- 3360 €
KOMPAKT (accumulations)
- 980 €
- 3360 €
COMFORT (modernization)
- 980 €
- 3360 €
PREMIUM (construction and purchase)
- 980 €
- 3360 €
* Calculations are made with allowable rounding
** The calculation is made for married people with an annual income of up to 80 thousand euros
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