Archive for year: 2019

The building permit is a specific document, issued by the building supervisory authority. It proves that a new construction or a rebuild does not violate public law regulations. Having in mind, that every federal province hat its own regulation about the location of construction, you should previously obtain informations from the responsible building supervisory authority.

In that respect, the building permit is the basic requirement for starting your new construction or reconstruction project. In order to get a building permit, those who are entitled to perform on construction projects, such as architects/civil engineers or supplier of prefabricated houses, have to submit the building application.

The necessary papers could be different in each federal province, so you have to look into its construction regulations. The following documents are always absolutely essential: Site plan (at a scale of 1:500), construction drawings (at a scale of 1:1000), informations about generating water supply and water disposal, specifications about statistics, heat insulation and noise protection, calculations on the built-up property area and the undeveloped part, evaluations on the total floor area/the surface area and on the living space/effective area. Furthermore, a listing of shell construction costs and of total expenses as well as a data entry form about construction activities are to hand in. Finally, you have to collect signatures from the owners of the neigbouring properties. They cannot stop the building permit. However these property owners have the option to file a suit against your construction permit, at the administrative court. That´s why it is recommended to obtain their consent.

The above mentioned documents, along with the building application, have to be submitted at the municipality. Afterwards, the corresponding body will turn the building application over to the building supervisory authority. Within ten working days, this authority has the obligation to check, if the application is complete. In case of incomplete data, the applicant will be granted a period of time in which he can hand in the concerning papers. Should the applicant not meet the deadline, the request will be rejected. At best within ten working days, you receive a confirmation about the complete proposal, including the date on wich the request will be decided.

From the date of receipt, the building permit is valid for three years. Please note, that this permission has to be shown at the building site, when there is an inspection. Otherwise the responsible supervisor will set a time limit of three days for submitting the missing building permit. At worst, he could issue an order to stop the whole building project. In the light of the above, construction work can only take place, when you hold this essential permit in your hands. Otherwise, there is the threat of fines or the building site could even be demolished completely, because a building permit cannot be granted afterwards.

Additional requirements concerning the construction project:

Two weeks before finishing the shell of buildung, the building supervisory authority is to be contacted, so that those responsible take appropriate measures for the acceptance of the construction site. Apart from this, you have to inform the building authority, two weeks before completing the whole construction. In addition, on the day of acceptance you must show a confirmation paper about the safe usability of the exhaust system, issued by the chimney sweeper. 

If your construction differs substantially from the development plan, from town charter or rather from building regulations, a request is to be made. Generally, this kind of application is very difficult  and can only be approved, as long as there is no harm to public interest.

An individual consultation appointment can be arranged by contacting us:

Phone: 0721 – 56 42 42
E-Mail: info@FinanzierungsExpert.de or just use our information contact form provided on this website.

 

By law enactment, child benefit for building – a government grant scheme to support families building homes – was introduced, on 05 July 2018. It aims to support young families to create their own homes, by supplying cash subsidies.

Does every family obtain child benefit for building?

Not at all, child benefit for building is attached to special conditions.

Under what conditions does a family receive child benefit for building?

Families with at least one child, being under 18 years of age and living in the same household, who have an annual taxable income of maximum 75.000,00 Euro plus 15.000,00 Euro per child, are eligible for this kind of child benefit.The subsidy amounts to 1.200 Euro, per child and per day, and is granted for the period of ten years.

For a better understanding: Each family with one child is allowed to have a maximum annual taxable income of 90.000 Euro and obtains a subsidy of 12.000,00 Euro, in total. In case of a family with two children, there is a maximum tax revenue of 105.000.00 Euro, and the total grant amounts to 24.000,00 Euro.

Apart from these financial conditions, two more criteria are to be met: The applicant aquires property for his own use, and besides, he does not own any further real estate assets. Child benefit for building is not a credit, but a subsidy, applied for through the KfW Bank.

When will the construction child benefit be paid out?

Child benefit for building is paid out in annual instalments. After a positive review of the supporting documents by the KfW Bank, the first grant instalment shall be transferred to the applicant´s account. You will find the specific date of payment on the confirmation paper which you have previously received from the KfW Bank. The further grant instalments will be remitted in the following nine years, always in the same month of the first payout.

Can you apply for construction child benefit retroactively?

Yes, indeed. Construction child benefit can be applied for retroactively, from 1st January 2018 on. That means, when you build or buy a house, in 2018 or later, you can submit your application. At the latest within six month after moving into residential property, you can make a request.

 

An individual consultation appointment can be arranged by contacting us:

Phone: 0721 – 56 42 42
E-Mail: info@FinanzierungsExpert.de or just use our information contact form provided on this website.

 

Whenever you would like to build a house or buy a property and you need a financing solution for this purpose, there is no way to avoid the following institution: The SCHUFA (a protective association for public credits) is a data collection point. Informations deriving from telecommunication agreements and from the trading and financing sector are recorded there. Most of these entries refer to instalment credits, real estate loans and to current accounts. Furthermore, negative issues such as arrest warrants or inability to pay are reported and registered there. In doing so, the SCHUFA does not verify that the stored records are correctly drawn up. Negative entries have an impact on the SCHUFA scores and they affect upcoming credit decisions or condition negotiations at the banks.

What exactly is the SCHUFA score?

The SCHUFA score is an internal credit score issued by this protective association for public credits, arising from the data of which it has been notified. That kind of score is expressed in percentage and it is supposed to assist loan providers on issues relating to creditworthiness. In case of a high score value, nothing speaks against awarding a loan from the SCHUFA´s perspective. In this context, it is important to be aware of the following facts: The existence of several registered current accounts or of listed loan condition requests has already a negative impact on the SCHUFA score. Therefore, please have in mind, that less is more. If you always serve the existing instalment credits on time, nothing stands in the way of a good score value. And if you are unsure, whether there could be negative entries at the SCHUFA, you will have the opportunity to make a free retrieval at the SCHUFA, once a year. Should negative facts been listed there, you will have the option of discussing openly this issue with your agent, and in doing so, you could explain how all this happened. In case of a financing application, the banks will regard such kind of openness as positive. You don´t need to worry at all that negative records could be saved forever and ever. For each negative entry at the SCHUFA, there is a specific deletion period. Once it has expired, the respective record will no longer be evident.

It makes absolutely sense doing a checkup at the SCHUFA, from time to time, in order to make sure that entries have been erased where required, and to act quickly in case of incorrect records. Should wrong informations be registered at the SCHUFA, you have the right to have it deleted immediately. This claim must be reported at the SCHUFA without delay, in written form along with the relevant documents.

 

An individual consultation appointment can be arranged by contacting us:

Phone: 0721 – 56 42 42
E-Mail: info@FinanzierungsExpert.de or just use our information contact form provided on this website.

 

 

Nowadays, fixed-interest rate periods with a term of 15-30 years are anything but individual cases. Needless to say, the more the amount of liability increases, the more expensive interest rates become. But at times of low interest rates, there could still be very attractive conditions. For customers who want planning security this might just be right for them. Nevertheless, is it really advisable to be bound to one interest rate for such a long time? In future, Is it possible that the interests will fall?

In this context, Paragraph 489 BGB (German Civil Code) comes into play:

There is no question that banks calculate the returns of the agreement concluded with the customer. Of course, they have the right to do this. However, after ten years have passed, clients are entitled, by the German Civil Code/paragraph 489, to cancel any loan agreement with a term longer than ten years, in whole or partially. This procedure is free of charge. Though a six-month period has to be met. This time limit of ten years starts the day, after your loan has been paid off in full. For example in case of financing a new building, loan will be paid out step by step, in line with the progress of the construction. Since the final instalment is due and your loan has totally been retrieved, on the day after the ten-year period, it is in force.

To what extend do you benefit from that? Effectively, you are bound by the loan agreement, only ten years and six month. As the case may be, you can restructure your debts by the use of a loan at more favourable conditions. In case the interest rates have risen, you can be pleased about that and in doing so, you can allow to continue the contract. Hower, should you have liquid resources in the meantime and you would like to use them for loan repayments, you can give a notice of termination in part, concerning this amount. Finally, you can use this sum as redemption.

As you can see, being up to date with legal issues, „being informed about paragraphs“, can be quite useful. Do you have any questions regarding this topic? Please feel free to contact our financing experts. They are really glad to assist you on this matter.

 

An individual consultation appointment can be arranged by contacting us:

Phone: 0721 – 56 42 42
E-Mail: info@FinanzierungsExpert.de or just use our information contact form provided on this website.

 

When it comes to affordable property financing, interest rates are often regarded as the most important element. However, if you consider the whole issue, then you will realize that repayment is also an important point. By means of redemption, you are in control of two things: How long the loan agreement will last, and how high the interest rate should be which must be transfered to the credit institution. In the event of a contract conclusion with the relevant bank, a monthly annuity will be set. Speaking of annuity, it represents a payment variable depending on interest rate and duration through which the initial credit amount including the interest rates will be repaid, during the loan term. Annuity consists of a interest portion and of a repayment amount. While the interest share and the repayment portion vary, the amount of annuity remains constant throughout the entire term.

Due to the constant redemption, the residual debt of the loan will decrease month by month. Whereby the initial high interest portion will diminish. This interest saving will automatically flow into the repayment.

So far, so good. To state the interest rate as high as possibly, would also be a mistake, just like setting a extremely low rate. Financial margins for building up savings as well as unpredictable costs should always be covered by monthly liquidity. And last but not least, you also want to enjoy life. Please consult our experts. They will assist you. By doing so, they will create the best balance for you.

 

 

An individual consultation appointment can be arranged by contacting us:

Phone: 0721 – 56 42 42
E-Mail: info@FinanzierungsExpert.de or just use our information contact form provided on this website.