Here the real estate purchase is still worthwhile

Here the real estate purchase is still worthwhile

Author: FinanceScout24 – Published on 13.06.2015

They still exist: Cities in which a real estate purchase promises good returns. According to a recent study, Ingolstadt, Regensburg and Darmstadt lead the housing market ranking 2015. The housing markets score with their proximity to a metropolis. That the top 5 are two Bundesliga promoters, the study authors consider coincidence.

Analysts of the Frankfurt financial services provider Catella from Frankfurt have examined cities with more than 50,000 inhabitants under the magnifying glass and evaluated on the basis of various data regarding the profitability of a real estate purchase. As the Handelsblatt reports, the three front runners are followed by the cities of Potsdam, Hanover, Braunschweig, Wolfsburg, Freiburg, Nuremberg and Erlangen. In the future, it should be most worthwhile here to buy and rent a property. The bottom of the 70 cities studied is Herne in the Ruhr area.

Growing cities with many employees promise returns

The highest weighting in the study was the location potential, with population growth playing a major role here. In the two leading cities in the ranking, Regensburg and Ingolstadt, the number of inhabitants increased by ten percent between 2000 and 2014. However, it is also important that the share of employees subject to social insurance contributions to the total population and their economic power.

As far as the location of the cities in which a property purchase is worth, those who are in an agglomeration, score an important role in their surroundings or are attractive because of their proximity to one of the major cities. For example, Darmstadt, which landed in third place, is only 38 minutes by car from Frankfurt am Main. Cities with a university or local college were also ranked higher.

Top 10 – Catella Housing Market Ranking 2015

1. Ingolstadt

2. Regensburg

3. Darmstadt

4. Potsdam

5. Hannover

6. Brunswick

7. Wolfsburg

8. Freiburg

9. Nuremberg

10. Erlangen

Buying a property is especially worthwhile in the north and south

It is striking that among the locations with promising returns with Ingolstadt (1st place) and Darmstadt (3rd place) are two cities whose football clubs have just risen to the top league. However, the study authors consider this to be a coincidence. What the authors of the studies noticed, however, is that the high-performance housing markets are mainly in the north and south of the republic. Nine of the top 25 cities are in Bavaria and Baden-Württemberg. Real estate financing can also pay off in Lower Saxony: six of the top 25 cities in Lower Saxony are among the top 25. The Ruhr area, however, is lagging behind. It is represented six times in the ten worst-rated cities: In Herne, Hamm, Bochum, Recklinghausen, Wuppertal and Duisburg, according to the study, a real estate purchase promises hardly any returns.

Current financial news


Infographic: The dream of a home
Infographic: The dream of a home

Rollover: Term extension for loans and investments
Rollover: Term extension for loans and investments

Export success

Six months after the EU approved the takeover of the activity of Areva reactors by EDF, the French civil nuclear industry is still convalescing and crossing fears and uncertainties,,641398.html?updated=ok. Many mistakes were made, and the work of restoring order in the sector remains to be completed.

Restoring strong governance
Such work is the indispensable prelude to the second stage revival of the French nuclear power industry: technical and industrial restructuring – The specter of an early closure of French reactors spread since the recent statement by the Minister, the need is now to re-establish a strong governance, balanced and unified in a complex gas sector – This is the price that the current and future plant designs will compete in French and international markets.

Companies overwhelmed by the scale of the challenge
Of course, all this is not a path of roses. The EPR had bad luck and turned out to be such a leap forward that the companies responsible for the construction could be overwhelmed by the challenges he represented – However, the EPR is not alone in this case, quite the contrary. The technological advance represented by the generation III + reactors, both more productive and more secure, was an industrial and technological challenge that even the United States failed to win –

The attractiveness of French know-how
On the contrary, France – and his example of other countries where the state has a strong power over strategic sectors such as Russia and China – is poised to return to the front of the stage. The EPR at Olkiluoto and Flamanville are in the critical stage before the completion of those Taishan who will represent the first step of a new nuclear power generation in China.

The recent success of Hinkley Point in the UK, after years of neglect of the British nuclear industry, and requests for new power plants that are emerging – for which French expertise is increasingly sought – Poland, Turkey, Latin America or the Middle East, show that the attraction to nuclear is far from fade.

For French companies again become more competitive, industrial and managerial restructuring of the sector should be encouraged and supported by the state – The challenge for the French nuclear industry is now to demonstrate its ability to complete current projects and prove that central integrating the EPR are fully operational and technically reliable.

Export success, sustainable jobs, safety
The return to the forefront of the French nuclear industry is not only an industrial issue – Because nuclear power is, in addition to other solutions, the best technology to help limit the effects of climate change. Do not emit CO 2 to produce electricity, nuclear power plants used to have a high thermal and electric power, predictable costs.
Since the 1960s, the French nuclear power industry is a showcase of technological know-how of our country. The CEA and the industrial companies have been responsible for numerous technological innovations, export success, and sustainable jobs. Without the French expertise, the market will be split between Russia and China, two countries that, if they have demonstrated their industrial value, do not always show the same guarantees as France in terms of safety and waste management –,,

Stiftung Warentest: Every fifth building society falls through

Due to bad advice, many offers of building societies often come to their customers too expensive. In the field test by Stiftung Warentest, four providers fall through.

Many savings customers pay the assessment of the Stiftung Warentest due to poor advice too much. Four of twenty building societies fell in a test with a grade of “poor” by how the foundation announced in Berlin on Tuesday. Aachener Bausparkasse and the German Bank building society and the two regional building societies (LBS) West and Rhineland-Palatinate fell through. Only three times, the testers awarded the grade “good”.

Part of deals thus several thousand euros was too expensive, in other cases, customers had to wait too long for their housing loans. Sometimes the property purchase should have been postponed for years because the contract sum was inflated so that the customer would get the money only in 15 or 20 years.

The question of property: building society remains despite Mini interest an interesting investment

Time the building society loans were too small in relation to saving power, sometimes the credit rate been crushing high. Often, the customers were also informed about the conditions so poor that they with those of other funds could compare the offers barely.

In the test was examined to what extent the consultants the necessary customer data inquired such as the desired savings rate, the income or the presence of savings and other investments. Was examined also whether the offer fits the customer, that is assigned as the contract sum to the planned financing and the required savings rate is maintained and the credit rate corresponded to the customer’s needs.

is building savings and but remains “a great idea” for savers who later buy a property or wanted to build, the foundation emphasized. They saved a few years and then would get paid their savings and a favorable loan. Even paid building societies virtually no savings rates, but for this, they secured favorable lending rates from 1.5 to 3.0 percent. Each year would complete three million new contracts.

hard to judge the quality of advice for amateur

The Foundation looks at the different quality of the counseling sessions as problematic. Even trained for the task tester without special knowledge building society had completely located with their assessment of the test calls sometimes wrong. Many felt competent advice, but the expert analysis of the written offers and completed by the testers log sheets have often shown that the offer in question was “abysmal” and would have cost the savings customers a lot of money.

was strange was that a consultant part out have a certain tariff want to sell, which have, however, only suitable for saving on purchases such as furniture or the like, and the contract sum was limited to 10,000 euros. wanted the savers to buy a property and save it 400 euros a month, did not fit into the concept of the consultant. “More than 64 euros a month can not,” he had granted the baffled customers.

Real Estate: What can go wrong with mortgage lending

In the real estate financing customers are often incomplete advice, Stiftung Warentest has found. The conclusion of a construction contract often entails risks. The most common mistakes and how to avoid them.

Schlechter advice is expensive. What bank or building society representatives say is rarely actually wrong, but often dangerous incomplete. Who can be persuaded to equity poor or even -free finance with 1 percent in early repayment, takes a lot of luck to building or to really end up paying -Purchase.

Other risks do the conclusion of a construction contract. If important services such as the development of the site are missing and no money is there, the dream may have burst their own home before construction has even begun. The most common mistakes in mortgage lending and how to avoid them:

Optimism own contribution
Another risk when entering into construction contracts: The worker of the client itself is much planned too optimistic. If the builder does not or does not provide the intended house services on time, supplementary orders and additional credit be necessary. Especially an already scarce funding then quickly gets to slide.

Risk remaining debt

Especially with the currently low-interest financing with insufficient early repayment is highly risky. At the expiry of the fixed interest rate for five occasionally, but usually ten or 15 years a new loan must be found to compensate for the remaining debt. If interest rates at this time are higher than now, the monthly rate can increase dramatically.

Example: With a 100,000 euro loan with 1 percent in early repayment and 4.5 percent interest monthly payments of 458 euros to be paid to the bank. After ten years, the remaining debt is around 87,400 euros. If interest rates at this time are at 6.5 percent, the monthly increases to more than 625 euros. If interest rates even are increased to 7.5 percent, even 708 euros are payable monthly on the debt restructuring.

Costs under control

Particular caution is called for in extras at the conclusion of the loan agreement. Some banks charge as estimated costs. Significant differences also exist in commitment interest. Some banks charge as early as the second month after the loan commitment an interest rate of 0.25 percent if the loan is not paid.
At other banks interest-free grace period of six and sometimes even twelve months there. Such costs are not taken into account when specifying the effective yield. Nevertheless, the loan will be considerably more expensive. It is the rule of thumb: Charges amounting to 1 percent of the loan amount increase the effective interest rate at ten years fixed interest rate by 0.15 percentage points.

Computing tricks in building society offers

Worthless and misleading most interest data for building societies instant financings. Example Wüstenrot: The ticket campaigned in December with 60,000 euros in emergency funding with an effective interest rate of 5.06 percent for advance loans and 3.37 percent for housing loans after the 14-year savings period.

The financial test review concluded: Taking into account all costs of the effective interest rate of the combined loan at 5.73 percent. Cheap banks offered similar loans at the same time for more than one percentage point lower interest rate. In other words: For a monthly rate of 390 euros, the bank loan is repaid with 4.73 percent effective interest rate after 19.5 years. At Wüstenrot the 390 euro rate payable 22.5 years long. The bank customer is at the end by just over 14,000 euros at an advantage.

Giant loss insurance financing

Even greater losses threaten when financed with capital life insurance. As such deals work: The future homebuyers includes 10 years before buying a life insurance policy. For payment of the purchase price, he gets redemption-free loans. At the end of the term of the capital life insurance contract, the payment is used to pay off the loan.
The financial test has compared such funding with conventional bank loans with a savings plan for the accumulation phase and construction loan on the accumulation phase after the missing money. Result: Depending on the loan interest rate, which will be payable on the purchase, the bank customer front is at a purchase price of 150,000 euros at the end of the financing to 45,000 to 97,000 euros.

Have the construction or purchase contract by independent experts, such as a consumer organization, the builders Protection Association or the Association of Private builders.

additional costs

Schedule the accumulating during contract utilities. They make up 5 to 12 percent of the purchase price, as a rule. Usually, you have to take as a builder or buyer’s account of the notary and often pay a commission fee. In addition, there is still real estate transfer tax of usually 3.5 percent of the purchase price and smaller items such as fees for land registration. As a builder, you still need to schedule additional cost. Particularly common the development of the site and the establishment of the construction site are to be paid additionally to the actual construction costs.
management costs

Do not forget that in addition to mortgage payments incurred operating costs. Ask the seller to last operating expense reports. Calculate new buildings with a month 2 to 3 euros per square meter.

1 percent repayment on the loan is not enough in the current low-interest rates. You should pay off at least 2 percent or degrade the remaining debt with unscheduled faster. Make sure that you can pay off the loans until retirement.

financing plan

Let yourself up a complete financial plan until the full debt relief for each financing offer.

fixed interest rate

Secure the currently low-interest rates in the long term. Loans with 15 or 20 years fixed interest rates are barely more expensive than loans with 10 years fixed interest rate.
rate hike

Let yourself reckon how your monthly payment will increase when interest rates rise to 7 to 8 percent after the first fixed interest rate.

building loan financing

If you want to fund right away, it’s not worth it mostly, but still, conclude a savings agreement. The combination with a loan for pre-financing of the savings is too expensive in general. If you are still obtain building savings: Insist that the building society called writing the overall effective interest including savings premiums and contract fees.

Endowment policy

Complete any endowment policy, if you build now or later, or want to buy a house. This is always much more expensive than a conventional financing for owner-occupied properties.

Avoiding Common Bank Fees And Charges

Whenever an individual accepted the loan, it will be essential to pay it off for some time. This is especially true you receive fast personal borrowing. While the money won’t necessarily be a massive amount, the repayment is typically broken up into a couple of weeks or many months. The timetable is determined by the amount that was borrowed.

In the midst belonging to the credit crunch, the many bank rescue plans established in many countries inside of the world would re-create the confidence needed between the definition of the bank by different authors particular smooth functioning of markets on which business credit depends.

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