Most people dream of either a house with a garden or a beautiful garden plot. Here, for example, you would like to plant fruit and vegetables and simply spend wonderfully relaxing hours. However, land purchases often burden your own wallet very much, so that the dream garden usually can not be bought from the existing money . Nevertheless, it is not necessarily necessary to give up the desired property : With the help of a loan , the dream of your own green oasis finally becomes reality.
form of financing
For lending , it is important to know if it is a meadow or building plot.
Property financing is, as the name implies, the purchase of one or more plots of land. However, this does not make it clear which type of financing is involved. It is important for the use of a loan that here, among other things, specified whether it turns a meadow or building plot. Finally, any development as well as the location of the property have a major impact on the value of the property. The value of the land is usually determined separately by the banks by a specialist appointed for this purpose and serves as a basis for financing .
Suitable types of credit
When financing a property, various types of credit / principal, such as a mortgage loan , are eligible.
As a rule, land financing, for example, depending on the income and the loan amount , either calls for installment credit or a mortgage loan . The bank grants a mortgage loan not only for developed but also for undeveloped land. Here, the so-called land charge, which is also known as “real security “, incriminating entered into the land register. If the borrower does not meet his payment obligations, the bank is authorized in this way to rent or sell the property.
Likewise, a distinction is made here between the repayment type. So it is not only possible to buy a land loan , but also for a fixed or annuity loan . The differences here are mainly with the repayment type. For example, the borrower settles for a repayment loan an always constant repayment . Here, the existing interest burden is minimized per year, so that the residual debt steadily decreases. Accordingly, the rates change here again and again. In contrast, in a fixed loan, initially only the interest must be settled regularly, while at the end of the repayment period, the entire repayment is due. On the other hand, the situation is quite different for an annuity loan : here, the lower residual debt interest is compensated by a repayment installment increase, which leads to consistent rates again. These are divided into a repayment and an interest portion. An annuity loan in this form is often used not only for real estate financing but also for real estate loans .
Terms and interest
The amount of the interest and the conditions depends on various details, such as your own credit rating .
When financing a property, the terms and interest rates depend on various details. This not only includes a good credit rating, but also a secure, regular income, but also any existing equity. Furthermore, the length of the fixed interest rate, the current interest rate position and the rank of the respective mortgage debit that was recorded in the land register play an important role. If necessary, the use of various subsidies and development loans is also included here. However, this is often the case when it is a building plot rotates.
It is advisable to compare not only the different loan offers well with each other, but also to trade the property price.
If the dream property was found, it is advisable to compare the various loan offers of the banks well together. The best way to do this is to use an online loan comparison : this makes a quick, straightforward comparison easy to do. In addition, it is advisable to talk to the seller of the property and to negotiate the price. This approach is common: in most cases, sellers assume from the outset that the prospective buyer will try to get a lower price. Here it is absolutely advisable to bring all things that do not please a person personally on the property. So it is quite possible, when buying the dream property to save a lot.
Ideally, that is the purchase price only after the priority notice paid, because this assures the prospective buyers the rights to the property to.
If an opening reservation is made in the land register, then it is advisable to pay the purchase price only afterwards. This is because the preclusion ensures that the rights to the property are secured for the respective buyer. In addition, it is essential to pay attention to a purchase right of withdrawal . The right can, for example, be claimed in the event of failed financing.
Payment protection insurance
The conclusion of a residual debt insurance can make sense depending on the individual situation or it is possible to do without it.
Under certain circumstances, the bank also offers the conclusion of a so-called residual debt insurance. Such insurance comes into play, for example, in the event of unemployment or the death of the policyholder. However, it should not be forgotten that the insurance contributions are in addition to the installment payments on the property loan. Thus, if necessary, a further financial burden must be accepted.
In addition, it is advisable to think carefully whether such insurance makes sense for one’s own personal situation at all. For example, with a family with children looking for a larger garden, it is often a good choice, while a single who only leases a smaller loan for a smaller garden may not need a residual debt insurance. Accordingly, your own personal, financial and personal situation should always be included here.
With a loan, it is usually very easy to finance your own dream garden.
The financing of a garden property by means of a loan is usually readily feasible provided that the prospective borrower satisfies the various requirements of the bank in question. Although it applies here to pay attention to some peculiarities, such as whether a preclusion is made or whether a residual debt insurance is completed, but this can be achieved with a loan usually very uncomplicated finally to the long desired dream garden.
Tip: The best way to plan for the loan amount not only the pure purchase price, but also any other costs, such as the construction of a garden shed, garden furniture, soil, plants and flowers.
So you are well equipped right from the start and can start gardening immediately. Maybe even in the same year it will be possible to enjoy something that has been planted, such as tomatoes and peppers.