Financial investments: savings account, call money and time deposit account

In addition to traditional savings accounts, you can also opt for securities as an investment. The interest rates are higher. The disadvantage, however, is that you cannot count on the money so well. You do not know in advance how the interest rates will develop, because they depend on the prices on the capital markets. In contrast, the classic investment of money in the form of a savings account, a call money or a fixed-term deposit account can be calculated exactly in advance. However, the interest rate can be significantly lower than if you invest in shares or securities.

Pay attention to the availability of the investment

If you have saved reserves for the purpose of construction financing, it is advisable to coordinate the investment of funds with your planning. This applies in particular to investments in securities and fixed-term deposits. The capital will not benefit you if it is not available on the due date. If you liquidate cash investments prematurely, you will often lose some of the interest or be charged fees.

Investing money from the sale of real estate in a financial investment

Similarly, you can transfer money you receive from a property sale into an investment. This is possible in the short or long term. Since most banks no longer pay interest on funds held in a current account, it is advisable to transfer funds that are not needed immediately from the current account to an investment. With the large amounts you get for selling a property, even low interest rates have a positive effect and you can make a positive profit. If you would like individual advice on financial investments to be used in connection with the sale or purchase of a property, we would be pleased to offer you our services.

Investment in shares and securities

Shares and securities are considered a flexible and very profitable investment. You can buy individual shares, or you can decide to invest in a fund. In this case, different shares are grouped together. The fund is managed by experts. In principle, you can buy or sell shares at any time at the current daily price. However, always keep an eye on the development of the increase in value. Also take into account that the securities account is subject to charges at many credit institutions. Furthermore, the purchase price of a share is higher than the issue price.

Value development: consider risk in calculation

In contrast to a classic savings investment, the performance can go down as well as up. You should also take this into account in your calculation. Compared with other financial investments, you can achieve the highest returns by investing in shares and securities. However, this may take some time. Knowledge of the market is an advantage. If you want to save money for a construction loan, stocks and securities are only a good choice if you plan for the long term. Short-term gains are theoretically possible. However, unlike the classic fixed investment, they cannot be planned.

Fixed investments with classic interest rates

A fixed-term deposit has a specific term. The interest rate is also fixed, so you know in advance how much money you will have available at the end. This is an advantage for construction financing. The disadvantage is that interest rates are at a consistently low level. This is especially true for cash investments with a short term. Also take into account that you usually do not have access to the money during the fixed period. You can terminate a fixed-term deposit in the normal way. However, you must observe notice periods of up to a quarter of a year and you will lose part of your interest.

Per diem account: Advantages, disadvantages, interest

You should only deposit money in a call account if you need it at short notice or do not know exactly when the withdrawal is necessary. Overnight deposit accounts are often linked to the current account. Transferring the money and returning it to the checking account usually takes one banking day. The advantage is the immediate availability of the money. The disadvantage is the low interest rate.

Real Estate Loan

A construction loan differs from the classic consumer loan by the more favourable interest rates and the longer term. The property serves as collateral for the financing. The debt is entered in the land register. If the instalments cannot be serviced on time, the bank has the right to terminate the property loan and pursue foreclosure. In this case, it gets back its money or a large part of it. Thanks to this deposited collateral, the bank has the possibility to grant more favourable conditions for real estate financing than for a consumer loan granted without the deposit of collateral.

Here you come back to the main page: Calculator

Repayment calculator: credit, loan, installments

In most cases, construction financing includes a loan. This can be a bank loan, a subsidised loan or a low-interest loan from a building society. Regardless of the credit institution with which you have applied for financing and the interest rate you pay, the loan instalment consists of two elements. Interest and repayment are combined into one amount. The interest payment is retained by the bank, while the repayment is credited to your loan account. You can use a repayment calculator to determine the portion of the installments that will reduce your debt. Since the loan rate usually remains constant over the entire financing period, the ratio of interest to repayment shifts each month. The reason for this is that the interest is always recalculated based on the outstanding loan amount.

Change in redemption

Since the loan amount decreases with each repayment, the repayment grows continuously compared to the interest payments. This means that at the beginning of your financing you have a high interest burden and a low repayment. As you keep servicing the same loan payments, this ratio shifts. Eventually, the ratio has reversed and you are paying a high amortization with a low interest rate. When you take out a real estate loan, the interest and repayment are already calculated for the entire term. You can see in your loan agreement what amount you are actually paying off each month. With a repayment calculator you can determine this amount exactly.

Use repayment calculator effectively

The repayment calculator determines the amount by which you actually pay off your real estate debts each month. The interest payments are not taken into account. You can use the repayment calculator in different ways. If you have already taken out a real estate loan, you can determine which repayment rate applies to your current payments. However, the repayment calculator is also a very good tool when choosing a construction financing, with which you can make an effective planning.

With a construction loan, the bank sets the interest rate. You can only influence this by choosing a cheaper financing. The situation is different when it comes to repayment. You determine the repayment rate. At the beginning, the repayment rate is one percent due to the high interest burden after taking out a new real estate loan. It can increase dynamically or be fixed. With the repayment calculator, you can determine which repayment rate can be realized based on your individual financial possibilities. In principle, you pay off the loan faster with a higher repayment rate. However, you must be able to afford the costs. In the repayment calculator, you have the option of trying out different calculations to determine the ideal financing for your individual needs.

Calculator at a glance

Calculator – Exact planning of the construction financing

Calculators are necessary in relation to construction financing in order to accurately determine the cost of purchasing or renovating a property. A calculator is also used to determine the cost of the loan. The credit costs are composed of the interest and the repayment portion for the current loan amount. The interest plays an important role. Since the term of a real estate loan is usually ten years, the interest payment is spread over a long period. If an offer from a bank is only half a percentage point cheaper in their interest, you can already save several hundred euros a year. This is also due to the high loan amounts, which for most construction financing a six-digit amount. Before taking out a loan, an individual consultation is important. Often the construction financing consists of several pillars and not just a single loan. A building savings contract, equity capital and development loans come before taking out the classic bank loan. The reason for this is that these financings are significantly cheaper than the bank loan in terms of their costs. The calculator helps you to divide the financing into different elements and thus determine the costs with certainty.

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Interest calculator – Construction financing

The interest rates are a very large item in a construction financing. It is recommended that you compare the various offers and conditions well in advance. In this way, you will find out which construction financing is particularly favorable. Since the interest is a very large part of the monthly loan payment, especially in the first years of real estate financing, it is important that you try to save costs.

• Learn more about the interest calculator.

Budget Calculator – Equity & Income

Before the purchase of a house, a comprehensive renovation or a new building can be planned, it is very important to determine the available budget. Construction financing is planned over a period of many years. Financing between ten and 25 years is possible. It is important that the financing is planned from the beginning on a secure foundation. The basis for the budget that is available to you for the conclusion of a construction financing is your income.

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Offer comparison calculator – advice & options

The offer comparison calculator is an important tool when it comes to choosing a partner for taking out construction financing. Many builders are dependent on taking out a classic loan at a bank or savings bank, because the funds from the equity, a building savings contract and a subsidized loan are not enough. Although the comparison possibilities of the indication by the Internet are very simple and transparent, many owners trust only in the offer of their house bank.

• Learn more about the quote comparison calculator.

Different calculators for individual needs

When calculating a construction loan, different tools are used. It always depends on what values you want to determine. Just having construction financing is not enough in terms of calculations. Before you take over the property, it is important that you know the cost of maintenance. Unlike a tenant, as a homeowner you are solely responsible for paying the utilities. This does not take the form of a payment on account, but you pay the bills individually to the energy suppliers, the city or municipality and to the chimney sweep. Further costs arise from charges to waste cleaning, winter service and street cleaning.

Costs and fees

Specifically, the costs and fees you have to pay as a homeowner can vary greatly. There are cities and municipalities in which the individual homeowner does not have to pay any costs for cleaning the streets and roads or for winter services. Usually, this is only the case with private roads. Find out in advance what the monthly utility costs will be. Also include in your calculation the fees that do not accrue monthly, but annually, semi-annually or quarterly. Together with the loan, the service charges make up the total amount for running the house. This is then equal to the warm rent for an apartment or house that is not owned. Interest calculators and repayment calculators, but also household calculators and budget calculators help you to keep a very good and realistic overview of your finances even before you move into your own house.

Read also:

• Offer comparison calculator
• Budget calculator
• Budget calculator
• Incidental purchase cost calculator
• Rent calculator
• Repayment calculator
• Interest calculator

Do not neglect incidental purchase costs

With the purchase price of the house you have not yet acquired ownership. Every real estate purchase comes with ancillary costs that you should be aware of and factor into your construction financing. These ancillary costs include the estate agent’s fees, the land transfer tax and the costs for the notary. More about agents and commissions: hiring an agent. Further costs may be incurred if you need interim financing and have to pay the loan costs at the same time as your rent. In addition, as a builder, you are required to take out insurance. Also calculate the basic completion of the garden into your construction financing. This includes the creation of paths, a patio and a lawn. The garden plot should be levelled in advance. Many builders neglect these costs and initially have no money to complete the garden project after the build is finished. This leads to annoyances as soon as the house is occupied and to a reduced quality of living.

The same applies to the purchase of kitchen furniture, bathroom furnishings and home insulation. Time and again it is noticeable that builders who have calculated too tightly initially forgo the exterior insulation. For houses that are built using solid construction methods, the insulation is only installed as the completion of the exterior work. You should never forgo this measure because the building can take lasting damage from damp. In addition, there are regulations for new buildings in terms of energy efficiency. It is imperative that you comply with these regulations. Otherwise, you may be denied approval for the house during the building inspection, and you may not receive subsidies.

Set priorities correctly

Kitchen and bathroom are rooms that you need every day. Don’t forgo finishing them for lack of money, because this also means a lack of living quality. Rather calculate a little cheaper and use the calculator to determine your savings potential.
If you have realistically calculated the total costs for the construction in advance and the construction financing has been placed on a secure foundation, you will have no problems bearing the financing. In addition, you can completely finish the construction before moving in because the individual works have been well calculated and financially secured. This is the right way to get a good start in life as a property owner.

All calculators at a glance

Below we provide a listing of calculators that can help you calculate the cost of construction financing and the ongoing cost of maintaining the home. Take advantage of the opportunities to calculate all costs and fees in advance. This is an important basis for a solid construction financing that you can carry for years or decades:

Offer comparison calculator

Use a quote comparison calculator to determine which financing is the most favorable for you. The calculator lists the loan amount, the interest and the costs incurred and presents the total amount. In addition, you can find out about the monthly instalments that are due depending on the term. Learn more about the offer comparison calculator.

Budget calculator

A budget calculator should be used at the beginning of any home financing by the builder. It determines the budget that is available to you for the construction financing. The basis for the calculation is your income, the equity that you bring with you and the personal contribution that you plan. At the end of the calculation is a monthly rate that you can safely afford. From this rate you then determine the price you can pay for the purchase of a property. All about the budget calculator.

Budget calculator

The budget calculator is an important element that is not only used in the context of buying real estate. You have the possibility to compare all income and expenses. In this way, you can find out whether you can pay the loan from your income in addition to the running costs. Find out everything about the budget calculator.

Incidental purchase cost calculator

Incidental purchase costs are an important factor in construction financing. They are quickly underestimated by builders. Since they can amount to a five-figure sum depending on the location and size of the property, they should definitely be calculated in from the outset. The ancillary purchase costs calculator helps you to calculate the costs exactly. More information on the ancillary purchase costs calculator.

Rent calculator

You use a rent calculator if you can rent out all or part of a property that you own. Use the local rent to find out what amount you can demand from your tenant. You can also use the rent calculator to find out the service charge percentage. Everything about the rent calculator.

Repayment calculator

If you have taken out a traditional bank loan or a subsidised loan as part of your construction financing, you pay monthly instalments. These consist of the interest and the repayment of the loan. With the repayment calculator, you can determine what amount you pay off per year. The ratio of interest and repayment shifts over the years, because the interest is always calculated on the outstanding amount. At the beginning of the term, the share of interest is very high. This reverses month by month in favor of the repayment. However, the rate you pay to the bank always remains the same. Find out all about the repayment calculator.

Interest calculator

Use the interest calculator to determine the cost of construction financing. It will help you to choose a low-cost financing. Even a small difference in the interest rate by a few percentage points behind the decimal point can amount to several hundred euros per year over the term of the loan. You can save these if you have determined the costs with an interest calculator and decide on a favourable offer. More information about the interest calculator.