Benefit from fixed loan rates
Not only are the costs of food and energy rising, but real estate prices and interest rates for construction financing are also climbing. But even if it seems otherwise at first glance, inflation can have a positive impact on your real estate purchase. This is the case if you opt for an annuity loan with fixed loan installments. The higher the inflation rate, the more the real interest rate for installment loans falls into negative territory. This devalues credit debt, which theoretically means you pay back less than you were lent. However, this scenario only applies to loans with interest rates lower than the rate of monetary depreciation. In addition, you only benefit during the fixed debit interest period. Subsequently, the interest rate is adjusted according to the current inflation rate.
Loans with variable interest rate
If you would like to fulfill your dream of owning your own home in the near future, you should refrain from taking out loans with variable interest rates. Since banks and lenders can change the interest rate at any time, there is a risk that the financing installment will suddenly be significantly higher than planned in your initial cost calculation.
Secure credit early
With the right strategy, you as an owner will benefit from inflation. This applies not only to the purchase of a house in which you live yourself, but also to the investment in a rented property. Depending on the contract and legal regulations in your region, you may be allowed to adjust the rent to the rate of inflation, which in turn will allow you to easily pay for a higher construction loan. It is important to secure a loan with a long term of at least 15 years early on. This allows you to calculate for the next few years and avoid nasty surprises.
You are still unsure which construction financing is the right one? We maintain an extensive partner network and will be happy to put you in touch with a qualified financing expert who can provide you with comprehensive advice. Please feel free to contact us for further information.