First of all: Why is 110% or full financing worthwhile?

As an investor, you prefer to take out a real estate loan and pay it back over a long period (approx. 35 years). This has advantages: you need less equity, so you can “invest more money” (because you don’t need any). This allows you to generate more rental income. Yes, there is interest, but there is also inflation. This devaluation of money ensures that loan installments actually become “cheaper”. Learn more here: Real estate as an investment Advantages.

That’s why it’s worth calculating the 3 scenarios!

Full financing of a property: Costs

Example of full financing: Assuming the purchase price of the property is EUR 240,000 and no equity is contributed:

• Purchase price of the property: 240,000 euros
• Equity: 0 Euro
• Loan amount: 240,000 euros

Conditions of the loan:

• Interest rate (effective): 2.5% – depending on the bank / credit rating, the interest rate for full financing may be higher, by 0.05 to 0.1 %
• Term: 20 years
• Monthly installment: 1,218.75 euros

Financing at 110% of the purchase price: Costs

Example of 110% financing – In this scenario, 10% of the purchase price is financed in addition to the purchase price for ancillary costs and reserves:

• Purchase price of the property: 240,000 euros
• Equity: 0 Euro
• Loan amount (including 10% ancillary costs): 264,000 euros

Conditions of the loan:

• Interest rate (effective): 2.5% – depending on the bank / credit rating, the interest rate for full financing may be higher, by 0.05 to 0.1 %
• Term: 20 years
• Monthly installment: 1,345.00 euros

Financing with equity: Costs

Example with equity – Assume you contribute 20% of the purchase price as equity:

• Purchase price of the property: 240,000 euros
• Equity capital: 48,000 euros
• Loan amount: 192,000 euros

Conditions of the loan:

• Interest rate (effective): 2.5%
• Term: 20 years
• Monthly installment: 975.00 euros

How to finance a house and condominium?

Choosing the right financing option is crucial to the long-term success of your property purchase. Full financing allows you to buy without equity, but leads to higher monthly installments and overall higher total costs due to interest. Financing with a higher loan amount, for example 110% of the purchase price, can cover the additional costs, but further increases the monthly burden.

Bringing in equity makes it possible to lower the monthly installments and reduce the overall costs, as the loan amount is smaller. This also allows for a better interest rate as the risk for the bank is lower. However, it is advisable to retain a certain amount of equity for unforeseen expenses or repairs.

Ultimately, the best financing option depends on your individual financial situation and your long-term goals. It is advisable to plan carefully, think through different scenarios and seek advice from a financial expert if necessary to make the right decision.

Favorable financing for house & condominium?

Make life easy for yourself and prepare for your house or apartment purchase at an early stage. Step 1 is always to clarify the financing. Put simply:

How much house can you afford? How much apartment can you afford?

Step 1: Clarify financing before buying

Let’s start with the financing.

Learn more here:

• Real estate financing
• Equity
• Plan financing / self-disclosure
• Obtain a financing offer

Tip! Construction financing in comparison

Good providers, good conditions, good investment. Compare different providers and their current interest rates and conditions online and free of charge:

• Construction financing comparison

Lukinski Real Estate Tools – App #1

It all started with this app or idea at Christmas, two months later the app (v.1.0) is ready and in the App Store!

The idea: Real estate app for beginners

There are thousands of apps for nutrition, thousands for sports, millions for gaming, and only a handful of real estate apps, mainly for apartment hunting.

Then at Christmas I had the idea: I build very simple real estate and financial calculators for beginners. The Lukinski Immo Tools App. Example: You can explain a repayment plan (interest, repayment, loan installment, unscheduled repayment) in a complex way in guidebooks with a thousand words or just show it. My teacher in business school used to say: “Don’t bring fish to the ‘poor’, give them a fishing rod”, a simple quote from the south of Bavaria, but containing a lot of truth. “Learning by doing” would also be apt. See our Real Estate Munich.

15+ small calculators for equity, savings plan (reserves), amortization schedule, incidental purchase costs by state, real estate transfer tax, realtor costs and much more!

The real estate app for beginners with the goal:

1. Build equity
2. Find cheap property
3. Buy real estate (as an investment)

New functions of the real estate app

In the coming weeks and months, I will refine the calculators and build new calculators, also for owners. Already now you can find in the app also the co-ownership calculator (purchase of a condominium > part of an owners association) or also living space calculation, functional area and much more, all according to DIN 277 and WolfV.

Download from App Store

Here you can find the free real estate app in the stores:

Free of charge in the App Store!

You can also find out more about the app and the calculators here:

• Lukinski Immo Tools App

Lukinski Villas App: Vacation Property & Investment – App #2

Vacation property or investment (live and rent or rent only), in the Lukinski Villas app you can now find a selection of gems in Ibiza, Marbella, Los Angeles, Miami (and more places).

On my travels, especially in the Spanish-speaking world, I make more and more contacts. Some of them lead to the real gems: Villas in Ibiza, Marbella, Los Angeles (and other hotspots). With the Lukinski Villas App you can discover a few of these gems, as a vacation property or as an investment (live in and rent out or just rent out).

Download from App Store

You can find the free Villas app in the stores here:

Free of charge in the App Store!

You can also find out more about the app and the Villas here:

• Lukinski Villas App

Real Estate Experience App: Learn Investment – App #3

How do you learn to “buy a property”? The best way is with the Immobilien-Erfahrung.de app. 30 steps, constructed by our expert, to the first property.

In addition, in the app you will find the entire wiki with over a thousand technical terms, explained simply and understandably.

Download from App Store

Here you can find the free real estate app in the stores:

Free of charge in the App Store!

You can also find out more about the app and how to become an investor here:

• Real Estate Experience App

FIV Magazine App: Fashion & Real Estate Magazine – App #4

Already over 25 issues of FIV Magazine, my little media baby of the 90s, my “little Vogue”. All issues are now available for free with all covers, interviews in the FIV Magazine App.

Download from App Store

Here you can find the free real estate app in the stores:

Free of charge in the App Store!

You can find out more about the app and the magazine here:

• FIV Magazine App

Lukinski Check

In my comparison portal you will find the most important topics and good providers. For your construction financing, follow-up financing and much more! Secure good conditions with my Provider Check 2023:

• Comparison

Financing: a comparison of providers

The A&O in real estate investment: Affordable financing!

• Building society savings contract – build up equity
• Construction financing – Favorable interest rates
• Follow-up financing / forward loan
• Installment loan – For small renovations & co.
• Rental deposit – The first rental apartment

Investment: comparison of providers

Building up equity means saving and investing money. Here are my tips:

• Current account – Safekeeping money
• Depot – Invest money
• Call money – putting money aside for the short term
• Fixed-term deposits – putting money aside for the long term
• Roboadvisor – investing money (automated)

Ownership: insurance and sale

Finally, 2 practical comparisons for real estate owners:

• Household contents insurance
• Partial sale

Saving teaches you how to get rich!

What does that mean? Simply put, every euro you save in interest, for example, can be directly reinvested by you as a smart investor. Each euro corresponds to ~ 20% equity for the first, second real estate purchase. So with a loan, 1 euro becomes 6 euros that you can invest. Saving 100 euros in interest = 600 euros more equity, 1,000 euros = 6,000 euros more equity, etc.

Example:

• 100,000 euro loan at 2% interest
• 1st year = 2,000 euros interest costs
• 2nd year = 1,960 euros interest costs
• …
• 39,130.36 Euro interest costs !!!

Insight:

• It pays to compare offers / providers
• Interest is cost factor #1 after the purchase price of the property

Tip! Use the repayment plan calculator (below) to check for yourself how much interest you will be charged each year with only 2% interest costs.

Repayment plan example: 2% for a term of 35 years

Here is an example of financing at 2% over a term of 35 years.