What is a Mortgage?

Mortgage is a key component of any property investment. No matter the wealth or region, you’re gonna have to confront the facts about mortgage, the amount you’ll have to pay in total, and the interest. To pick the right mortgage you will need to be informed about everything there is to know about mortgages. All this and more below. If you want to save money on your mortgage, and you already know about saving money on real estate taxes, you should understsand it in detail. We begin with the definition of mortgage.

Mortgage Definition & Explanation

A mortgage is a type of loan. That means it is a sum of money which a lender pays on behalf of a borrower. A mortgage is a loan which is used to pay off property. The borrower is required to pay the money which they borrowed back, but not as a lump sum, but rather in rates. This means that e.g. as opposed to paying 1 mil. in one transaction, the borrower can pay 10.000 every month for 100 months. On top of this though, the lender typically requires interest, which is a percentage of the total loan which the borrower must pay on top of the rates.

What are All the Things you Pay in a Mortgage?

In a mortgage you pay more than just the amount which you borrowed. You pay additional fees at the point of closing the mortgage, you may have to pay a private mortgage insurance, and you will have to pay mortgage interest. The amounts you pay on these usually follow a formula where the more you pay at the closing of the sale, i.e. the more you pay up front on your mortgage, the less you pay later on or annually.

These are just some of the additional costs you pay when closing the purchase of property. This and many more closing costs for house purchases are detailed in our article on

• All additional Costs and Hidden Fees when Buying a House

The Loan – Ending a Mortgage

Of course, you are required to pay back the amount which you borrowed. If you borrow $500.000, you will need to pay this back in full at the conclusion of your mortgage. This is the simplest and most overseeable part of your mortgage, as well as the most substantial sum.

Mortgage Closing Costs – Upfront Payments

These are costs which must be paid up front when closing the mortgage. They pay for things like title insurance, application fees, etc. Mortgage closing costs are of course paid by the buyer of a property at the point at which the property is purchased. There’s too many to list, and these vary and depend on many things, but below some of the common ones.

• Loan origination fee: up to 1% of total loan
• Escrow fees: $350 – $1,000 but can be much more
• Appraisal: $500-$1,000 but can be much more
• Prepaid taxes and insurance: $1,000-$4,500 but can be much more

These typically range around 2%-5% of the total loan amount. So for a $750.000 loan you can pay an additional $37.500 in mortgage closing fees. They should not be confused with purchase closing costs, such as the taxes you pay when buying a house.

Discount Points: How to Reduce your Mortgage

Discount points are points which you pay at the beginning of your loan. The more you pay here, the more discount you receive on your mortgage. If you ‘buy’ 2 discount points, you receive a discount of 2% on your mortgage.

Mortgage Interest Lowest Mortgage Interest

Interest is a price which you pay for the service and risk of someone loaning you money. Mortgage interest rates are expressed as annual payments, and are e.g. 5%. That means that every year you will pay an additional 5% of the total loan amount to the mortgage lender.

Our article covers everything you need to know about the topic

• Mortgage Interest – How Countries Compare

Who is the Lender for a Mortgage?

Mortgages are most often loaned by independent mortgage companies. That means organisations who are specialized in lending mortgages. Although financial institution such as a bank or credit unions. In the USA, banks make up 32.4% of mortgages, credit unions make up 8.8%, with mortgage companies making up 54.4% of the market. These are not all the types of lenders though. Below is a list of all types of lenders in the USA.

What’s Better, Mortgage Companies or Banks?

It’s not difficult to save on real estate taxes generally, but you don’t want to spend more than necessary on your mortgage. Typically mortgage companies (or mortgage lenders) are more flexible. That means they can customize your loan, close your loan faster, and more open to negotiation. They also, because they are specialized in loans, typically have more expertise.

• Mortgage companies (e.g. Quicken Loans)
• Banks (e.g. Wells Fargo)
• Savings associations/loan associations (e.g. Mortgage Bankers Association)
• Online lenders (e.g. GuaranteedRate)
• Credit unions (e.g. Connexus)
• Private individuals (e.g. Family Friend)

What are the Most Popular Lenders?

The top lenders in the USA are Quicken Loans, United Wholesale Mortgage, and Wells Fargo. You can see quickly that specialized mortgage lending companies are the most popular choice at the moment. Here a list of the most used lenders in the USA for mortgages.

1. Quicken Loans – 541,000 loans
2. United Wholesale Mortgage – 339,000 loans
3. Wells Fargo – 232,000 loans
4. JPMorgan Chase – 186,000 loans
5. Fairway Independent Mortgage – 147,000 loans
6. LoanDepot – 146,000 loans
7. Caliber Home Loans – 136,000 loans
8. Bank of America – 134,000 loans
9. Freedom Mortgage – 110,000 loans
10. U.S. Bank – 94,000 loans

Should You use a Mortgage Broker?

What are the advantages of mortgage broker versus a direct lender? A direct lender is an entity (e.g. a bank or credit union) which provides you funds, and to which you in turn pay interest. A mortgage broker is a middle man who is an expert in finding the best mortgage loan. In other words, a mortgage broker takes care of contacting and researching a direct lender.

• Direct Lender: Banks, Credit Unions, etc.
• Mortgage Broker: Middle man who finds the best deal

Mortgage brokers are advantageous if you have difficulties finding a loan. This can be down to low credit scores, or an income which makes lending to you unattractive. Mortgage brokers also often have access to mortgage lending programs unavailable to the typical citizen. Though you will have to pay an extra fee of course to pay the broker for their services.

• Brokers good for low credit scores or low income

Direct lenders such as banks are advantageous because you cut out a middle man. In this case you only have to pay a commission fee to the loan officer (the individual overseeing your loan at the institution). This also has the advantage that the broker is not acting in his own interest, e.g. choosing the institution which pays the highest broker fees.

• Direct Lenders allow to avoid broker fees

What are the Different Types of Mortgages?

There are a few different types of mortgage loans. These differ on three important variables. In other words when shopping for a mortgage loan, you must decide beforehand in which category you fall for each of the following three variables.

Type of Loan: Conforming vs. Non-Conforming Loans

The U.S. government has set certain guidelines delineating ‘conforming’ and ‘non-conforming’ loans. These loans differ in the amount which you can borrow. This limit (as of 2020) is $510.000. That means when you receive a loan for more than this amount, you are receiving a non-conforming loan. Non-conforming loans have worse interest rates and fees than conforming loans. Within non-conforming loans the most popular is the ‘jumbo loan’.

Type of Loan: Fixed Rate vs. Adjustable Rate

Fixed-rate loans and adjustable rate loans (also called adjustable rate mortgages) differ in the variability of interest rate, as the name states. That means fixed-rate loans incur the same interest over the whole period of the loan, while adjustable rate loans incur a rate which is set to change across the lifespan of the loan.

The first, fixed rate loans are attractive because there is safety. The interest rate will not change, and therefore budgeting and planning is easy. Typically fixed rate loans are more expensive at the outset than adjustable rates. Additionally, fixed rate loans are designated by time period. The most popular time frame is a 15-year fixed rate loan. That means the borrower pays back the loan and the same interest rate over 15 years.

Second, adjustable rate loans, are attractive to start with, because the rates are lower. Yet, because they can change, borrowers can be surprised that the interest rate increases over time. These also usually begin with e.g. 5 years of a fixed rate, after which the rate begins to vary.

• Fixed-rate = Same rate for full term
• Adjustable Rate (ARM) = Variable rate

Type of Loan: Conventional vs. Government Backed

Government backed loans are loans which are insured or guaranteed by the government. Examples are Federal Housing Association (FHA) loans or Veterans Administration (VA) loans. If you have a non-conforming loan it is impossible to receive government backed loans. The main differences between conventional loans and government loans are that conventional loans have stricter requirements (e.g. better credit score and higher income), are insured privately, and the guidelines are more relaxed, meaning less paperwork.

Mortgage Terminology Explained

There are many words unique to the real estate loan market which are not used in every day life, making the understanding of mortgages more complicated for the layman. These words are explained below, with definition and explanation

Escrow – Meaning

An escrow or escrow account is a savings account where funds are placed. This account is managed by your servicer, who deposits a portion of each mortgage payment into your escrow account to cover your estimated property taxes and insurance premiums. Not all mortgages come with escrows.

What is a Mortgage Principal?

Mortgage principal, also called loan principal is the amount outstanding on your loan. In other words, the amount left to be paid from the amount you borrowed. E.g. if you borrowed $400.000, and have paid $320.000, your loan principal is $80.000.

Down Payment – First Mortgage Payment

A down payment is a sort of deposit. It is the money you pay in advance to buy a house. You almost always have to pay a down payment to receive a mortgage. A larger down payment generally means better credit terms and a cheaper monthly payment.

Take for example a 5% down payment on your $1 mil. house. You only pay $50.000 at the point of purchase, but will pay a monthly private mortgage insurance, and likely higher interest rates. You can also receive discount points when paying more on your down payment, which reduces the interest rate. If you pay a 25% down payment, you’ll pay $250.000 at the point of purchase, but you will not have to pay private mortgage insurance, as well as receive a better interest rate.

• Larger down payment = lower interest

Mortgage Term – Length of a Mortgage

This is the period of time in which you pay off your loan. E.g. the fixed rate 15 year loan, has a mortgage term of 15 years. The longer the mortgage term, the higher the interest rates, and the longer the loan will be following you. Yet you will have to pay less each month.

Want to learn more about the many additional, and often hidden costs of buying a home? Our article covers everything you need to know

• All Additional Costs of Buying a Home Explained

Sell land: drain

In all areas, the location is what counts most, not only when selling your developed or undeveloped property. With sale of an apartment, sale of a house but also when you sell your multi-family house, the location is a central valuation factor for the selling price of your property. Selling privately or “free of charge” and without an agent carries risks and makes the sale as well as the entire transaction (valuation until notary and contract of sale) prone to errors. Selling real estate needs a good network of buyers, often real estate is not presented publicly, but only internally as off market property.

When selling a property, similar questions arise as with a house sale. However, there are also some other points worth mentioning here. With a property it is to be paid attention to whether it concerns building land or building valuation land. In the latter case, the land must first be developed by the respective municipality. Only when there are connections for water, gas, electricity and sewerage, may construction work be done on the property. Building plots are usually more valuable than building land.

A professional exposé and meaningful pictures are the basis for selling a property. By listing the data and photos you establish the first contact to prospective buyers and lay the foundation for requests for viewings. If your description does not contain enough information or if the pictures leave questions unanswered, the interest will be lost or you will have to expect a large amount of individual questions.

Procedure in short form: Pictures until credit check

Another important point is the sales-related documents. Procuring them costs a lot of time, money and nerves. But without the important documents you cannot offer your property, so you cannot leave this part of the organizational tasks out. To simplify the sale and to offer your house with all relevant documents, it is worthwhile to engage an estate agent.

If your property attracts interest, potential clients will be waiting for a quick response and assume that you can be reached by phone and online.

With your assignment to real estate agents, you transfer all tasks from preparation to the sales phase to the conclusion of the contract to an expert who will take care of the brokerage of your property and who will find a suitable buyer for your property.

Foreword – Free tip? Yes!

All my tips in this guide are free of charge for you. As real estate agents we mediate properties starting from 1 million euro Verkerhswert, under the category luxury real estates. We are happy to give you tips and tricks for your sale, free of charge, explained in detail and step by step. Also pay attention to our links, here you will find more detailed information on the individual topics. Should you wish to sell your property with us: Do you know what our unbeatable advantage is? We independently reach more than 250,000 readers per month, which means 3 million people per year. We are independent from common real estate portals and reach a solvent, special target group. In addition, we offer internal buyer groups and investors in our Off Market area, to whom you have no access via usual offers. Read more here: Real estate agents.

Sell land: Built-up & undeveloped

Just like the sale of a house, the value of the land is also determined. As a rule, the municipalities determine the so-called standard land values every two years, which have resulted from the sales of other plots of land. However, these standard land values are not binding for the sale. The location and transport connections of the land also play an important role in pricing. Building plots in sought-after residential areas achieve higher prices. Also those plots of land that are oriented to the south have a higher sales value. Then you have to find a buyer. Nowadays, this usually happens online.

Basic questions when selling

Before going deeper into the subject matter, laws and the like, we first deal with more general questions: How much tax is payable on the sale of real estate? What do you need to sell land? Is it possible to sell land without a notary? Is the sale of land taxable?

Let’s start with potential buyers or interested parties. In the end, they finally decide whether to refuse, accept or even outbid a purchase price.

Checklist: What do buyers want?

When searching for a suitable prospective customer, the following aspects can be taken into account:

• Type of land
• Use possibilities
• Plot size
• Inclination of the property >/li>
• Urban or rural location
• Transport connections

Use options: Building land, field or forest land

The nature of the property also determines its possible uses. Is it building land, agricultural land or forest land. The size of the land is usually given in square meters. In the case of large agricultural areas, hectare specifications are common. The slope of the land is meant by the gradient of the land. This is especially the case with slopes.

Plots of land located in cities offer different possibilities of use than plots of land in rural areas. This is especially true for the type of development. In addition, transport connections also play an important role. It is of primary importance mainly for building sites or commercial properties.

Arable land or built-up area in the city center:

Visualization: new construction project after sale.

Checklist: Prepare land sale

Selling a property in the hectic of everyday life is quite demanding: planning and thoughts as well as discussions, as you will see in the next two checklists for preparation in house selling.

Owner questions before the sale

Time expenditure, appointments, creditworthiness and inspection. As a real estate agent, you know how much work is involved in selling a property.

Here it is particularly about experience in real estate trade, in order to avoid risks and errors in the house sale in the apron.

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The company is also actively involved in marketing the land. The right platform must be found or not, keyword off market real estate. In addition there is the time planning for the sales, from preparation over advertisements, photos, portals, answering prospective customer inquiries, date arrangement for inspection, examination of the soil quality of the potenziellen buyers or investors, purchase price negotiations, sales contract, taxes and much more besides.

9 simple steps for selling a house:

1. How well do you personally know about the sale of houses?
2. Have you sold a house before?
3. Can you create a meaningful advertisement (online and print)?
4. How do you rate your negotiating skills in local pairings?
5. Would you like to let any unknown person into your property?
6. Do you want everyone to know about your sales intentions? Tip: Our Off Market Real Estate
7. Are you ready to deal with the legal requirements necessary for the sale of the house?
8. Are you willing to take over the time and work involved in marketing your house yourself?

Tip! Buyer network and investors

One reason why many decide to use a real estate agent is, besides risk minimization, the buyer network. Particularly with properties, we recommend that you market your property not only regionally!

Real estate investors are looking for interesting objects, including in particular plots in sought-after locations, but also in locations with development potential.

Negotiations will be more intensive, but the profit from the sale of your property can increase accordingly, worthwhile.

What is my property worth?

This question is at the very beginning. To publish an offer, you need a price for the land. But determining the offer price is not that easy. In addition to the basic material value of the property (if your property is developed), other factors are also included in the selling price.

The market value determination as the foundation of the sale

In this respect, a valuation is the focus and lays the foundation for a price that corresponds to the object, the storage-relevant information and the infrastructural embedding.

Based on the determined market value, you can rule out the possibility of overvaluing the property or advertising it at a price that is below the real value.

Due to the rising real estate prices, you should have the valuation carried out directly before the sale and refer to information on the market value that is not known to you and that dates back several years.

Smooth processing of the property sale

Your advertisement is published and generates interest. Now the sale of the property enters a phase in which perfect organization and scheduling become important. Viewings must be planned, timed with you and the prospective buyers, carried out and evaluated.

If an applicant expresses serious interest, the real estate agent checks his creditworthiness and obtains the self-disclosure including a confirmation of financing. By checking the financial background of potential buyers at an early stage, it can be ruled out that problems will arise shortly before the contract is signed.

Tip! Sell Off Market (not public)

Off Market means that your property sale will never be publicly visible. Your property will only be recommended to an internal, solvent group of buyers with an ideal constellation. Off market sales are especially claimed by prominent persons who want to keep the sale as well as address, photos and much more secret. Also private persons fall back on the service, for example if the family should not know anything about the upcoming sale or the neighbourhood. For such a discreet, off market sale you need a renowned real estate agent with a good network. Your advantage: Nobody will know about the sale.

• Sell Off Market

Valuation: Realistic prices increase the revenue

There are many questions to answer, the best answer is to have an expert at your side for the real estate valuation.

Which price is appropriate and realistic for your property, with or without real estate? If the purchase is not too long ago, the purchase price at that time can be a first indication. Comparable properties from the online offers of the regions can also provide a vague estimate.
If the value is too high, the property can “burn”, because it remains too long on the market and something seems to be wrong with the property.

Often the price is lowered, which means that the actual revenue potential of the land is lost – you are missing out on good money. This is also confirmed by a study conducted by the savings banks in cooperation with FlowFact AG and the IIB Dr. Hettenbach Institute. The study found a connection between marketing duration, sales price and marketing price. The study confirmed that the proceeds are greater and the marketing duration shorter if one relies on a realistic estimate when evaluating the property.

Thus, the professional assessment by experts of the market value of the property is highly recommended for a smooth sales process.

• Valuation by appraisers or experts (real estate agents)
• Revenue potential loses through price reduction, with too long insertion

Market value, mortgage lending value and real value

Different property values are used as the basis for valuation. The most important are the market value, the mortgage lending value and the real value. In principle, the market value, also known as the market value, is determined in a property valuation or real estate valuation.

Frequently used methods for determining the value are taken into account:

• Objective value
• Loan value
• Unit value
• Ground standard value
• Soil value

What valuation method for my object? Property + real estate

Three standardized methods are permitted for determining the value of the property by experts and appraisers: comparative value method, real value method and capitalized earnings value method. Which method makes sense when depends on the property. If it is a property, different valuation methods are used than for a building. Different valuation methods are also used for owner-occupied and rented properties. In the case of objects in compulsory auction, the value appraisals of the real estate can be viewed at the responsible local courts – often online. In this case, the owner’s consent is not required and any interested party can view such an appraisal free of charge.

Property Value Ordinance (ImmoWertV)

Until 1988, real estate valuation was based on the German Valuation Ordinance (WertV). In 2010, this was replaced by the German Real Estate Value Ordinance (ImmoWertV). The new law is intended to standardize valuation once again. With the adoption of the new regulation, the legislator also had foreign investors in mind. The ImmoWertV regulates binding terms and procedures for privately commissioned and publicly appointed experts. It is also binding for expert committees for real estate valuation.

The ImmoWertV distinguishes between the:

• Valuation of real estate and the
• Value determination of buildings

Good reasons for an evaluation by experts

If the property value is of interest, the market value must be determined. If the property is to be sold, if a divorce is pending or if inheritance matters are involved, the market value of the land is taken as a basis. The market value is also the basis for the value to be negotiated when granting loans and other forms of asset distribution. In case of a division of real estate assets (divorce, community of heirs) a price range is unsuitable. For this reason, a concrete sum must be stated when valuing real estate within the framework of market value assessments. This market value refers to the date determined in the expert opinion.

In the case of a sale of land, the precise value is less decisive and often the determined value of the land is quantified with a price range. When selling land and buildings, the regional market and supply and demand play an important role. Depending on the sales strategy, the comparative or market value determined is used differently. A basic distinction is made between sales at a fixed price and sales of land by means of a bidding process. The “perceived value” of the property should never be included in the marketing basis. If the selling price is higher than the market value, the buyer has to provide much higher equity than necessary.

Valuation of developed and undeveloped land

With the comparative value of the IPV, an offer price can be determined more precisely. In contrast to the comparative value, which is compiled by the real estate agent, the market value is the exact price that a property can probably achieve on a certain key date. What is included in the market value is regulated in the Building Code (BauGB). In order to determine the market value of a property, the location, condition, equipment (in the developed state), but also legal circumstances are taken into account. The term market value is used synonymously.

In a property valuation, the land value is determined. The determination of land value is based on the comparative value method and the use of suitable standard land values. In accordance with the German Federal Building Code (BauGB), expert committees must be formed to calculate the land values. These expert committees are composed of independent experts as well as an employee of the tax authorities.

• Tips & details: valuate property

The value of the building site

For the evaluation of building plots, the standard soil values provide a point of reference. The standard values indicate how much a square meter of space in a certain location costs on average. Concrete characteristics of the property are not included in the standard land values. Since only an average of the regional location is used for evaluation, the standard land values can deviate greatly from the actual value of the property.

In order to determine the value of the building site, it is necessary to inspect the extract from the land register. This excerpt, which is available from the land registry, contains all entries in the land register for the property and corresponds to a history of the property. However, only the seller is entitled to request the extract from the land register. The extract from the land register ensures that the seller has corresponding rights to the property and is actually allowed to sell it. If several entitled persons are registered, they can only sell their respective shares. Existing restrictions regarding the use of the land are also entered in the land register extract (e.g. land can only be built on for residential purposes). For buyers and sellers, the land register excerpt is indispensable for the valuation, division or sale of the land or property.

Another important point in the valuation is the location of the land or property. Criteria for the valuation are:

• The macro location, i.e. the region or the city district
• The microlocation, the immediate neighborhood of the property

The evaluation takes into account, for example, the neighborhood’s social milieu and its infrastructure. Even if good transport connections to shopping, school and industrial areas are not planned until the future, this can already have an impact on the property valuation.

Property valuation in the focus of investors

In addition to the standard valuation, the profitability of a plot of land or a property is of particular interest to investors. The profitability of a property refers to its development in future years. Since the boundary parameters of a property and the valuation made on a reporting date can change at short notice, only an estimate of the expected profitability is possible. The “location” factor also receives special weighting in this estimate. In a study, “Die Welt” (German newspaper) has taken into account the development of the macro locations of all German districts until 2030. A further focus of future performance is the “renovation backlog”, provided that above-average maintenance measures are expected. If the marketing of your property is to be aimed particularly at investors, further criteria are required to assess the investment offer. In addition, the form and framework of the financing are also important for investors in a property valuation. In addition, the reputation of the project developer is also important.

Taxes on land sale: Overview

Taxes are payable on every sale. Of course this also applies to real estate.

Acquisition tax, speculation period, sales tax, trade tax

Since 2012, taxes of 25 % are due on the sale of land. This applies to the profit made from the sale of a property. In principle, a speculation period of ten years also applies here. The profit is calculated as the difference between the acquisition costs and the sales proceeds.

There is no sales tax on the sale of land. Trade tax is only payable by businesses if the purchased property is counted as business assets.

In the case of large plots of land on which no construction projects are possible, a division is also advisable. In some German federal states, however, special official approval is required for the division of a property. The public building authorities or a civil engineer can provide information on this.

Building right: Later development of a property

The building law is the basis for a later development of a property. For this the building authority needs some documents like:

• Marking
• Floor
• Flat piece
• Outline
• Legal charges
• Registered building loads
• Information about adjacent properties

Marking: Real estate cadastre

A markung is a unit of area that can be found in the real estate cadastre of a municipality. The demarcation describes the ownership of a plot of land and is registered in the land register. The term cadastral plot designates an open area, usually an agricultural area.

A parcel of land is an officially surveyed part of an area. An outline sketches the respective plot of land in terms of area.

Grundschuld (former mortgage): Legal encumbrances

The legal encumbrances on real estate include first and foremost the mortgage, the land charge, the annuity charge, the life annuity, the easement, the usufruct and the real charge. The mortgage used to be a common form of loan security. Banks in particular have used these possibilities to secure loans.

In contrast to a mortgage, the land charge is independent of a claim to be secured. The annuity charge is a different type of land charge and secures payments. However, these payments do not repay the debt, but are rather to be considered as interest payments.

Leibrente, usufruct and rights

In the case of the life annuity, a piece of land can be used as collateral. The life annuity as such is a contract under the law of obligations, which can be enforced in given cases. An easement stipulates that a neighbor may use the land or that the land owner may not carry out certain things on his land. This is mainly the case with transit permits or when a building ban is to be registered.

The usufruct regulates the use of the land. The usufruct gives the usufructuary all rights as the land owner. Only a sale is prohibited. Real estate includes all actions to which the owner of the land plot commits himself. A real charge enables a creditor to auction the land.

Building development in settlement:

Large construction site industrial park:

Costs, expiry and land transfer tax

There are also some additional costs that have to be considered when selling land. These include first and foremost the land transfer tax. It is different in the individual federal states. In Hesse the tax rate is currently 6% of the purchase price. In the federal state of Rhineland-Palatinate it is currently 5%.

Land transfer tax at purchase price 500,000 Euro

Source: real estate transfer tax table by Alex Fischer (Germany).

Broker commission and upper limits

In addition, there is the broker commission. The amount of the brokerage fee is not regulated by law in Germany. Usually the buyer usually bears this burden. Sometimes, however, the costs are shared between buyer and seller. The amount of the brokerage fee is regulated differently in the federal states. However, there are upper limits.

In the federal state of Rhineland-Palatinate, the usual brokerage fee is 7.14% and is divided equally between the buyer and the seller. In Hesse, the broker’s commission is 5.95% and is borne exclusively by the buyer.

Costs for the notary public

In addition to these costs, there are also the costs for the notary. The amount of the notary’s fees is uniformly regulated in Germany. The basis for this is the so-called Court and Notarial Costs Act. However, these notarial costs can be lower when purchasing building land.

Whoever acquires a property pays the necessary notary fees. If a building is erected on this property, this circumstance does not constitute a further purchase and does not fall under the obligation to pay notary fees.

Procedure of a notarial act

A notarial certification always follows a certain scheme. For the time being a date is chosen for the notarization. At this appointment, not only the notary but also all contracting parties must be present in person. The notary reads out the purchase contract. Change requests can then still be made. The notary decides whether the desired changes are also possible. Afterwards the purchase contract is officially signed by the contracting parties and the notary.

The notary then ensures that the purchase is recorded in the land register. In addition, the tax office is informed about the purchase, which sends the buyer the land transfer tax assessment. Finally, the notary sends the buyer his fee note.

Richer than the Geissen: The audio book

Important: Currently the book is only available in Germany! I speak German and discovered this book or audio book two weeks ago. Even if you wouldn’t understand a word in the podcast, I wanted to introduce some of the methods and strategies to you!

I have heard the podcast 2 or 3 times by now, there is simply a lot to learn! The first chapters and episodes of the audio book are not about “making money”, but about the preparations for it: Your mindset. If you want to be successful with real estate, you basically have to know the principles and strategies that are timeless. What fascinates me about the podcast? Especially the new way of looking at the well-known Pareto principle, now thanks to Alex Fischer I see it for the first time as a mathematical formula. What this changes, I’ll show you right away! In addition, I want to introduce you to two of the over 70 episodes: The “Reference to Money”, but also the selection of projects using an example from Alex Fischer, the “Wow Real Estate”.

What is the book and podcast “Richer than the Geissen” by real estate millionaire Alex Fischer about?

“In 5 years without equity to become a real estate millionaire”

The content – the book or podcast basically consists of three parts, with personal stories and examples to illustrate the strategies and principles. In part 1 you will learn how to develop your mindset. You will also learn the basics for installing your own “money magnet” and many other principles that will help you manage your life successfuly.

Exactly this includes the understanding of the Pareto principle (at least for me one of the many wow moments was in the podcast), the reference to the topic of money and the project selection using the personal real estate example of Alex Fischer.

The second part then deals with the tools you need to be really free. The third part is about earning money. You will learn how to build a money machine, how to build up your own capital, how to buy your first property and what you have to consider when doing so. Afterwards, it goes much deeper into the matter, including instructions on how to use real estate as an investment tool.

The book and audio book “Richer than the Geissen” summarized:

1. Part – How to develop the mindset to attract money and success like a magnet.
2. Part – What tools you need to be truly free.
3. Part – How to set up a money machine that works for you day and night while you sit back and enjoy.

If you want to watch the whole free audiobook, you can find the podcast on Spotify and iTunes here!

• Audio Book on Spotify
• Audio book on iTunes

As I said, one of the most interesting learnings for me was the completely new view of the Pareto principle as a mathematical formula! Take a look at what results from this completely new view and how it makes your decisions and your life extremely efficient.

Pareto-principle: Thinking ahead

This is a small excerpt from the “Richer than the Geissen” episode 13: If you do the same as everyone else. The Pareto principle is named after the engineer, economist and sociologist Vilfredo Pareto. He lived from 1848 to 1923, the same age as Henry Ford, for example. Almost 100 years after his death, his principle is just as relevant. Every businessman and woman knows it. By definition, the Pareto principle says that 80% of the results are achieved with 20% of the total effort. The remaining 20% of the results require the most work with 80% of the effort. Conversely, this means for you, concentrate on the 80% that you can achieve with 20% of the work.

The Pareto principle, according to Alex Fischer, also applies to assets: 20% of people own 80% of the assets. The remaining 80% of people own only 20% of the total world wealth. 20% of the rivers of this world carry 80% of the water, but the other 80% of the rivers carry only 20%. Surely you will quickly understand an example as an entrepreneur: 20% of your customers account for 80% of your business, but the other 80% of customers only account for 20% of your turnover.

Calculation: Pareto as formula

Alex Fischer goes into this principle and – for me – looks at it from a different perspective for the first time. Because, more precisely, it is not a principle, but a mathematical formula that does not end at step 1 (80:20). Now it becomes ingenious, because as I said, the principle is actually a mathematical formula. Also to the already divided 80:20 can be separated individually again into 80:20.

• Step 1: 20% of the work provides 80% of the result

In the second step, you take both results and divide them again in a ratio of 1:5 or 4:5, so that you get 4% (20% : 1/5) from the 20% and 64% (80% : 4/5) from the 80%.

• Step 2: 4% of the work provides 64% of the result

In the third stage, therefore:

• Step 3: 1% of the work provides 51% of the results

You can find out more directly from Alex Fischer in episode 13: If you do the same as everyone else.

Digression – How did Pareto come up with this ingenious principle? Vilfredo Pareto studied the distribution of land ownership in Italy at the beginning of the 20th century. During the calculations, he discovered that 20% of Italian citizens owned 80% of the state property. Conversely, he concluded that Italian banks covered 80% of their customers with only 20% of their time. His rule was later confirmed, among other things in the distribution of wealth just mentioned. In 1989, it was indeed established that 20% of the world’s population owned 82.7% of assets. Amazing in how many areas this rule applies.

Pareto principle in private life

In Evolume 20: Am I a good life investor Alex Fischer deepens the insights into everyday life. Which activities are investments and which are expenses? Am I a good life investor?

According to the Pareto Principle, private life is also about sensible investments and less sensible, or rather unnecessary “expenses”, in order to concentrate on the important and correct ones.

As a small reminder of the Pareto formula:

• 20% – 80% of the result
• 4% – 64% of the result [2nd stage]
• 1% – 51% of the result [3rd stage]

One of the simplest and most memorable examples in a podcast or book is, for example, “Watching videos”: Watching two hours of television afterwards makes you feel even more inefficient than before. Two hours of YouTube, with a video from which you learn something, will take you further. Or even this example: If you invest time in sports, you feel energetic and can do other things faster. How do you invest your time? Listen to episode 20: I am a good life investor.

Pareto principle in entrepreneurship

Wow objects in real estate – How do you know whether you should really go for a project? Why does it make sense to analyze one’s own actions and then set up rules?

In episode 18: It’s a Hell yeah, Baby or a No after finding his own purpose, Alex Fischer returns to the Pareto principle using real estate he bought himself. After 10 years, Alex Fischer examined his purchased objects. Which properties did he finally buy and which not? For him there were always three types of real estate:

1. Instant wow – all bought
2. I can’t. Of course I can’t
3. Yes, maybe you can make – consumed 90% of the time, none of the objects was finally bought

Retroactively, this resulted in the following rule, “Wow” objects are bought, “can you make” objects are not! In many ways, it’s like buying real estate. Helpful for buyers: property buying guide. It’s either total enthusiasm or a “no.”

Generalist instead of specialist: Everyone is an entrepreneur

I myself have always been a big fan of “generalist instead of specialist”. The broader I am, the less risk there is. In Asia, this principle is described by a chair. With only one tree, it tips over easily. Two legs make it more stable, three legs make it extremely stable, four legs make it virtually “untippable”.

Alex Fischer brings an interesting concept here: Everyone is an entrepreneur and has to make important decisions. Even in their private lives.

“If you want to be successful in life, it would be smart to have the basic knowledge that will turn you from a chaotic person to a sovereign manager.”

In entrepreneurship you know that there is a department for everything. Decisions are clear in the management. Communication with people is the PR or personnel department. It is the same in private life. You also have to advertise for yourself, even if it is “only” conversation, so to speak your advertising department, etc. This applies on a small scale (private life) and on a large scale (company). So you are not only an entrepreneur, but also the entrepreneur of your life. Every activity, from a private party to a football club to a cosy dinner, every activity contains different departments that work together.

Of course there is external knowledge (family or consultant), but basically you are responsible to find the right strategies in life and business. Own knowledge for the important “departments”, for example about network building to production, but are essential for success. This and more you will learn in episode 19: You have more departments than you think.

Accordingly, Ale Fischer says: “if you want to be successful in life, it would be smart to have the basic knowledge that will turn you from a chaotic person to a sovereign manager. It is essential that, according to Pareto, in all areas or departments of life you acquire the knowledge to have that 20% knowledge that makes up 80% of the result!

Group psychology

There are exclusive jewellery dealers and producers such as Graff, Phillips, but also De Beers. Nothing happens by chance, much in our lives is subject to external influences. Here Alex Fischer gives many good examples. For example the diamond ring, for the sweetheart.

De Beers is known worldwide for the production of the finest engagement rings, wedding rings and other elegant diamond jewelry. In the 60’s De Beers and its marketing team asked themselves the question, how to sell more diamonds? The idea, a marketing campaign with the following content: “If you care about yourself and you really love your wife, you give her a diamond ring. The campaign worked extremely well, so well that there was even a second edition: “If you really care about yourself, invest at least a month’s salary for your mistress.” That second campaign worked extremely well, too. So De Beers went one step further: “If you really love your wife, you should invest 2-3 monthly salaries!” – It’s fascinating how marketing can change the way we think.

The principle: group psychology. Although things are installed artificially, after a certain time they seem quite natural to us. Alex Fischer provides many more examples, for example the Coca-Cola Santa Claus, which was actually only invented to give a positive association to the own brand colour. Remember: information does not become truer the more often it is repeated. Do not believe anything that has not been proven to you!

Alex Fischer explains in Episode 14: Know Your Why, from when it really started for him. Successful, happy and full of energy was Alex Fischer when he found his “Purpose”. Many also say “vision” or “mission”. That means, what motivates you so much, what brings you so much energy that work doesn’t feel like work anymore? An extremely important question that Alex Fischer raises here.

Personal note – Also in my lectures I always say: It should feel like playing football. If you manage to make a living from “kicking”, you’ll be on the pitch voluntarily at the weekend too – because it doesn’t feel like work.

The own goals: Find your purpose

In the following Alex Fischer describes various examples on the subject. For example of High Potentials. For a study, over 1,000+ participants were interviewed and their careers subsequently followed. At the very beginning they were asked what their primary goal was. 90% had the goal to earn money and 10% wanted to realize a vision. Who do you think made it to millionaire? In total, 135 of the high potentials made it to millionaire. Of the over 1,000 participants, only 1 (of the 90% with the goal of “making money”) made it to millionaire. At the same time, all of the 10% with “vision” (except 1) became millionaires. Wow.

So you must always have the sense of your work in your head. Then you are “unstoppable”. Your steps:

1. What do I want as the final score?
2. Why do I want that? What’s in it for me and those around me?
3. Implementation (Reminder: Pareto rule)

Another prominent example comes from former US President Bill Clinton. You want to know? Hear more in Episode 14: Know Your Why. Here Alex Fischer also tells what kept him from finding his own Purporses at first. How to find your Purpose you will learn later in the book “Richer than the Geissen”. Start at the very beginning and listen to episode after episode. This is how you learn most of all.

Attention and earning money

What is the purpose of money? How was it created? Exchange is probably the earliest form of trade, in which two goods are exchanged for each other. But how did money come into being as a means of payment that can later be easily exchanged for desired goods? When it comes to money, there are many questions, how do you earn it? Does it make you happy? Is a lot of money good or does it harm your character? In the following, Alex Fischer discusses how to form a new understanding of money.

What is money, what is its purpose and how did the money system come into being?

The purpose of money

“What is the purpose of money and why do many people have none?” In a nutshell, the point is that money is a form of energy. Here are a few thoughts from episode 15: What is money and why do most people have none? First Alex Fischer says “Money is a voucher that gets its value only and exclusively through people’s trust in it”. The way to money is long if you get into its basics mentally.

Whoever thinks of money also thinks of banks. They live on the trust of the people – why do you find out right away. Trust means being firmly convinced of the reliability of a player. You get trust when you are able to foresee the actions, behaviour or laws. This trust and the resulting money replaced the direct barter of goods.

Banking system: Origin of money

How did the first banks emerge? After I heard this episode, I told them at least 10 times!

The answer to the question how the banking system was created lies with goldsmiths. Since they worked with precious metals anyway and had set up appropriate security measures, they were the perfect contact for people who wanted to keep their jewellery safe, for example during long journeys, which were still made by carriages at that time. They kept jewellery for people, like rings. People received receipts for their jewellery so that they could redeem them later. Traveling was much easier that way, “Receipts instead of a chest full of gold”.

When the goldsmiths noticed that never all people redeemed their vouchers at the same time, the idea was born to issue different vouchers for the same item – of course in the hope that never all of them would be redeemed at the same time and that everyone would want their gold back. These vouchers were issued against interest. This is how the credit system was born.

The blacksmith lends money that is not his own, in the hope of getting it back with interest.

Be of maximum value to your surroundings

An extremely interesting asset. Another small excerpt, which also conveys the spirit well. Alex Fischer says: “If I don’t have money, then I am not valuable enough for my surroundings”. So you have to find out how you can be of maximum value for your environment. Beautifuly explained using an example from Steve Jobs (Apple), who was known for his clear answers. When asked by an engineer why he earns 30% less at Apple than at Google Jobs, Jobs said: “Ask your manager why he doesn’t think you are more valuable”. Wow.

Alex Fischer also goes deep into the subject, from barter to value creation in its original form, to the monetary system, i.e. a voucher that makes different goods easily tradable, to another interesting statement: “Why making money doesn’t work. How can you be of maximum value for your environment and what do you need to know to describe this path?

Extremely interesting insights, which are available in even more detail in Alex Fischer’s knowledge library in the members area. You can find the free member area here: Alex Fischer.

Success after Alex Fischer

In the podcast of “Richer than the Geissen” you will now learn that success, no matter from which area, essentially always consists of 3 parts. This includes your mindset and laws, management skills and knowledge as well as practice in using the tools plus your market niche. In the podcast itself, Alex Fischer goes much deeper into the individual points. Listen to the whole episode here (15): What is money and why don’t most people have any?

1. Mindsets and regularities – How to think successfuly? Which rules are successful? How do I recognize traps on the way?
2. Management and its tools / techniques – How to manage things, in relation to the individual departments of life
3. Market niche – How to recognize, build and operate a money machine (e.g. real estate knowledge with Alex Fischer, in a gold digger it would be the knowledge how to dig for gold and find gold veins)

The knowledge of point 1 and point 2 is generally valid. Point 3 is the specific market and product knowledge.

A chain is always only as strong as its weakest link. – Alex Fischer

You want more and deeper information about money, happiness and mindset? In addition to the podcast, Alex Fischer also has a large YouTube channel on which he regularly publishes new and interesting videos on the topics of success, real estate but also taxes. Now to: Alex Fischer Youtube.

How large is the number of those who want to be successful and therefore attach great importance to this? At the time of the last survey, 81.45 million people were living in Germany; this puts the rate at 44.52%. It is also interesting to note that the number of people remains surprisingly stable. Finding: The competition is fierce. The sooner you work on understanding success models, the sooner you will stand out from the crowd. Here you can see the number of people in Germany who attach great importance to success in their career from 2015 to 2019 (in millions).

• Average value: 36.55 million
• In 2019, 44.52% consider professional success to be important

At the same time, many people are afraid of the risks, as can be seen here by the question: “Are you afraid of being thrown back in your professional life as a result of a career change? Risk factor number 1 is for 24% health reasons that scare them. This is followed by the dismissal of the employer (18%) and a possible insolvency (17%) of the employer.

1. Yes, for health reasons – 24%
2. Yes, through dismissal by the employer – 18%
3. Yes, through insolvency of the employer – 17%

At the same time, 46% (corresponding to the finding that 44.52% attach great importance to professional success) say that they are not afraid of career setbacks.

You can find more statistics at Statista

Alex Fischer: Richer than the Geissen

“In 5 years without equity to become a real estate millionaire” – here you get the right and important tools for a happier and fulfilled life, also through financial freedom. Alex Fischer is living it up, with real estate he himself has already provided for a long time. His focus is on passing on knowledge, strategies and success stories. An extremely inspiring audio book. You want even more know-how? Become a free member of the Alex Fischer Community.

Alex Fischer: Learn more strategies

If you want to learn more principles, strategies and methods, you should take a look at Alex Fischer’s YouTube channel. Here you can find playlists sorted by topic to learn everything online. In addition, you can find links to slides and checklists here on YouTube – these documents are also completely free, without an email address. Tip! In the free member area you get the 27 strategies that Alex Fischer has extracted after more than twenty years of experience, compressed in an 11-page PDF as a checklist.

• Alex Fischer – Website & free members area
• Alex Fischer Youtube

“Richer than the Geissen”: Book and audio book

With over 200,000 readers, “Richer than the Geissen” is mega successful, for good reason. It is also in the top 100 at Amazon! In a nutshell, you get 43 timeless laws of success with which you can become more successful financially, professionally and privately. You learn to reach your goals, to “materialize” them (what this means, you learn in the book). You will receive exact step-by-step instructions for your own personal financial freedom. This way you avoid really frustrating mistakes right at the beginning.

As a private person and/or as an entrepreneur, you will learn from Alex Fischer how to avoid these fatal mistakes and at the same time follow your passion – every day! The book contains hundreds of learnings that will help you to live a happier and more fulfilled life. Best of all, you can get the audio book for free on Spotify and iTunes!

• Audio Book on Spotify
• Audio book on iTunes
• Book on Amazon

The largest energy consumers with the highest savings potential

High electricity costs are caused by a lot of points, there are a lot of consumers in the household and of course a lot of household appliances which are permanently in standby mode. In many households, devices such as notebooks run permanently. Some let the heating run for 24 hours and still others buy devices that are too big. Before we start with the most important energy saving tips, we would like to give you an overview of the biggest energy wasters. On the one hand there are the household appliances, which one finds in every flat and naturally also in every house.

Inefficient large household appliances provide high electricity costs

In the beginning one would always think that it is now probably a matter of owning and buying the most energy-efficient appliances. More details: buying property. Often it is just a matter of considering the size. Do we really need the XXXL stove? Even the smallest pizza consumes a lot of electricity. Although we don’t have the energy consumption of the stove or the stove directly in mind when buying a kitchen, the purchase is mostly about beauty and pleasure, it is often the little things in life. Because even small things can change a lot. There are very simple examples, for example the toaster for four toasts. Many people use an electric cooker, which often consumes a lot of electricity. Refrigerators in XXL or freezers with hundredweight of meat and food supplies. Everyone has appliances in the household that are oversized and leads to too much power consumption when using them.

Therefore, when buying new appliances, no matter whether for the kitchen, bathroom, living room or outdoor area, consider that the larger the electronic appliances are, the higher the electricity consumption and, ultimately, the higher the electricity costs! Therefore, compare different possibilities in advance and consider which capacities you really need in everyday life. Especially for household appliances with frequent use, such a minimization is worthwhile.

Avoid standby consumption: switch off electrical devices completely

You will now probably like many say standby mode? I know you do! Nevertheless, one of the biggest energy wasters to date is the standby mode for devices. Whether it’s the TV set or the coffee machine. Many household appliances are permanently in standby mode. Of course, we can understand that switching off the power strips every evening takes a lot of time and is of course also uncomfortable, because one or the other plug is located on the floor, next to the skirting board. Therefore here is our ultimate practical tip!

Saving money with wireless switches: never again standby

In many electronics stores but also in DIY stores you can buy electronic radio links, in which they switch off with a small remote control separately plug for plug. The big advantage is that you don’t have to bend down for a power strip, nor do you have to walk around the house or apartment to deactivate the individual standby modes. All you have to do is grab your remote and you can turn off every single plug.

How to set up your wireless switch

After purchasing your radio link, proceed as follows to set up the remote control. What’s the big advantage? When you get up in the morning, you can activate all your electronic devices at the touch of a button, or just a few at the touch of a button. The respective assigned receiver registers the pressure and as with the power line.

How to set up your radio receiver at the power outlet:

• Remove the radio link and remote control from the packaging
• Plug the small receivers into their socket
• Immediately after plugging in, press a button on the remote control, usually A, B, C and D or “On” and “Off”. Press in the “On” bar e.g. A
• Now the receiver is connected to the two buttons A, each for switching on and off ( On / Off )
• Plug your plug into the integrated adapter, for lamp, notebook or TV

Recommendation: switch off power with radio – test winner

As an editor, I naturally tested which products really made sense. For me, this is the clear test winner, because the radio link is easy to set up and keeps its promises. The price-performance ratio is therefore perfect and this radio link is our test winner for simply switching off devices at home and at work. While you are sleeping or not on site, you can switch off your devices with a simple push of a button. This way you no longer consume power in standby mode.

Fridge, dishwasher and washing machine: only in Eco mode really efficient

Everybody knows it from home! After the big family dinner, come the big dishes! Even in every single household, a small mountain accumulates quickly, which of course has to be washed. Crockery such as plates, cups or pots as well as dirty laundry in the washing machine. But those who throw their dirty laundry into the washing machine just like that risk a high power consumption!

But why is the Eco and Eco program so important for saving electricity? Most of the dirt, whether on the laundry or on the dishes, is usually only of light form. These slight impurities usually do not require the intensive programs of washing machines and dishwashers. Usually, eco programs are sufficient for a complete and clean cleaning.

• Make sure during the wash cycle that you use the integrated eco programs
• Dishes and laundry are washed at lower temperatures
• The runtime of the individual rinsing programs is significantly shorter
• So you save directly 50% of the time and additionally 20,30% of the energy, that through shorter and less energy-intensive programs

In the study: Set to laptop instead of PC

Many still have it at home, the good old computer. As all areas of society become more and more dependent on working with computers, the PC is used more and more. Not only that you need your own computer for work or research or just to read news, more and more computers are used to stream movies and series. This means that computers are no longer only used to write letters, edit e-mails or graphics. Many use the computer privately as a medium for entertainment.

New computers and notebooks can save a lot of energy. Not only do they require less power for the fan, they also provide more power with higher energy efficiency. That’s why it’s worth replacing your computer with a modern notebook, especially if you have an older model at home.

Current comparison

We have here the best comparison sites for you, with a smart search you can find the perfect power supplier for your needs. No matter how many square meters your apartment has, 80 square meters, 120 square meters or even 200 square meters. Of course, not only the size of the apartment plays a role, but also the number of residents. Do you live alone in a single household or do you live together with your family? All this influences the price of electricity.

Here are our three recommendations for comparison portals. Here you can easily and conveniently enter the different variables to find the perfect provider for your household!

• Verivox
• Check24
• Toptariff

Subscriptions – With regular use of a service

So if you want to subscribe to a certain service, you should be sure to use it regularly. If it turns out afterwards that the subscription is not used so regularly after all, unnecessary costs can be saved by cancelling it again. But those who use a service regularly can save a lot of money with subscriptions. The advantage of a subscription is that by subscribing to a service for a longer period of time, you receive this subscription at cheaper conditions.

• Permanent purchase of a certain service
• Reduction due to the permanent reference
• Worthwhile only if you really use a service regularly

The trial subscription – Try different subscriptions

For those who are not yet sure whether a subscription is worthwhile, a trial subscription offers a good alternative. This gives you all the benefits of a normal subscription, but unlike an actual subscription, this is free. This gives the consumer the opportunity to find out whether it is worthwhile to purchase a certain service regularly.

• To test if a certain subscription is worth it
• Free of charge

Compare mobile phone contracts

Mobile phone providers often lure with supposedly unbelievable offers. However, it is not uncommon to find that the offers that were initially believed to be incredible contain hidden costs. To avoid this trap, you should compare the different providers and their offers before concluding a new mobile phone contract.

Cancellation of contract – In case of dissatisfaction, please consider

Often you find out afterwards that you pay too much for a contract, but maybe you don’t use all the functions of the contract or even need them. Here it is important to get in touch with your mobile phone provider and look for a solution. If you are completely dissatisfied with your contract or the provider does not comply with the conditions, it is advisable to write the cancellation of the contract as soon as possible. If the cancellation is not written and submitted in time, the contract may be automatically renewed.

Other providers and offers – Inform, compare and change

It is best to inform yourself about other providers and their offers before the contract is terminated. If the case should occur that you are looking for a new provider, it is advisable to inform yourself here exactly about the contract. Thus the chances are minimized that one realizes afterwards that one pays perhaps too much for something.

Use WLAN to save money

In addition, you can save money not only by cheaper mobile phone contracts, but also by the WLAN connection with a mobile phone. If you want to download larger amounts of data, it is a good idea to use the WLAN instead of the available data volume of the mobile phone provider.

Monthly ticket for bus and train – save money when using public transport

If you travel by public transport, you should never travel without a ticket. Of course, it is expensive to buy a ticket for every trip at a ticket machine, but if you drive without a ticket and get caught, you will be fined. To avoid the fine and the expensive single tickets, you might want to think about a monthly ticket. This ticket is especially worthwhile if you travel regularly by public transport.

The Student Ticket

Whoever is a student at a public university automatically receives a ticket for public transport when paying the semester fee. This is not a separate ticket, but a student ID card. This will not only count as an identity card, but also as a ticket for bus and train.

The Work Ticket

There is a special ticket for trainees and employees as well as for students. This so-called work ticket can be applied for at the local transport companies and approved by the employer. Since this ticket is not automatically included with the payment of a certain identity card or contribution, as is the case with students, you should consider beforehand whether it is worth applying for a work ticket. Otherwise, it is still possible to apply for a monthly ticket for public transport.

Unlimited use of the ticket

Thus, the monthly ticket has not only the advantage that it is cheaper in the long run, but also that you can use public transport as often as you like.

Annual Subscriptions for Regular Memberships – Permanently cheaper

Those who regularly use certain services in their free time, such as the fitness studio or a newspaper, benefit from an annual subscription. Often annual subscriptions are concluded because one thinks these would be cheaper. This is also the case, but only if you really use these subscriptions regularly. Since you pay here monthly for a certain service you should be sure that you really need and use this membership.

• Fitness studio
• Newspapers
• TV connections
• Mobile phone contract

Consider cancelling your subscription

If you are totally motivated to go to the gym in the beginning, but lose the desire to do so after a short time, you should think about cancelling your membership as soon as possible. This also applies to other subscriptions such as newspapers. Who likes to read a certain newspaper, but notices with time that the time to read is not enough should think about cancelling the subscription. So you do not continue to pay for something that is not used as regularly as it should be and you avoid a possible renewal of membership.

• If it is used irregularly you should definitely cancel
• Possible extension can be bypassed

Use customer cards

Those who go shopping are often asked at the checkout whether they have a customer card. This question is perceived by many customers as annoying, but customer cards have some advantages.

Advantages of loyalty cards

For example, loyalty points can be collected by purchasing products. This gives you the opportunity to collect the points and then you can purchase limited rewards. This not only has the advantage of being able to purchase certain products for customers, but also that customers come by more regularly. Furthermore, as an owner of a customer card you get the chance to be informed about exclusive offers. These exclusive offers often hide true treasures. Another advantage of a customer card is that you can save a lot of money in the long run. This is due to the fact that one often receives percentages with the customer card with the purchase of products. So if you want to save money when shopping, you might want to consider a customer card.

• Collect loyalty points and receive limited bonuses
• Use of exclusive offers
• Rebates receive by a customer card

Compare insurances

Whoever takes out an insurance policy usually does not touch it for a long time. Understandable, because the insurance is actually only important if something happens. Be it car insurance, life insurance or travel insurance, all these things are only necessary in the worst case. But if you take a look at his documents, you might notice that he pays too much for something that is rarely used. Here are several tips you should consider.

What insurance is really necessary?

One should be clear which insurances one really needs. There are a lot of insurances which are quite unnecessary. This includes, for example, mobile phone insurance. These often exclude many damages and are nevertheless quite expensive.

Pay insurance premiums annually

Furthermore, one should consider paying the insurance premiums annually. Here you always pay the insurance at the beginning of the year in advance instead of monthly in installments. It should also be noted that insurance companies often increase premiums, which is why the premiums to be paid should be slightly higher. This not only has the advantage that you pay the insurance premiums all at once and you don’t have to pay anything for the rest of the year, but also that you automatically budget your finances.

Get information about the scope of your insurance

Furthermore, you should inform yourself about the scope of the insurance. This means that some insurance companies cover all costs, while other insurance companies only cover costs under certain conditions.

Cover costs yourself and compare insurances

Another tip is that you should consider paying smaller damages yourself. The reason for this is that although the costs are covered by the insurance, the insurance premiums increase as a result. As with other contracts, you should also compare the different insurance providers with each other and, if necessary, change provider.

• You should bear the costs for minor damage yourself
• Insurance pays, but this can increase the insurance contributions
• Compare the different providers and their conditions
• Cancel your current insurance if necessary and change provider