Sabine Krauß, Finanzberaterin

Doesn't it sound funny: The interests have been increased and the total tenor becomes shorter? I tried to explain this in today's podcast. Just listen to it. For further questions, please contact me.

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It is amazing, also for me. How can it be that projects are manageable for months ago and not anymore? Please look into the podcast a couple of arguments about the impact of increasing interest. If you have further questions or would like to discuss your situation, just contact me or look on my landing page: https://sabinekrauss.com/start

Podcast von Sabine Krauß anhören:

This question is coming up very often before the first real estate object with the benefit of using tax advantages of the rental process. It also comes up in very expensive areas like Munich, where an own used appartment is not affordable, so people take in consideration buying a capital investment with a smaller size and/or at a different location. What is also very important based on the increased interests: Is the capital investment still convincing regarding the rentability? There is definetely not a yes or no, you have to collect a list of all pros and cons for both sides. You are interested to discuss in more detail? Just contact me.

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One of the topic which is always discusses. For both exist pros and cons - regarding price, availibility, financiability, creativity and so on. Just listen to this podcast and get in touch with me for furhter questions and deeper insight.

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This is a question, which nearly aways come up in our first conversation. Now, based on the increasing interests, even more. Please listen to my podcat and make for yourself a list of plus and minus. If you have additional questions just contact me directly or go onto my landing page https://sabinekrauss.com/start

Podcast von Sabine Krauß anhören:

One of the main point for the choice of a real estate object are the 4 "Ls" - Location, Location, Location. This also triggers the eveluation of the bank. Do you have a better eveluation, you might get a better pricing, or even better - it is doable or not doable. This is also very important for the 3rd part usebility - and for a capital investment - for the chances of a 3rd part re-sale after 10 years for example. You are curious? Just listen to the podcast, or for further question, get in touch with me.

Podcast von Sabine Krauß anhören:

In nearly every conversation this question is discussed. Consequently, I would like to summarize in today's podcasts a few comments, pros and cons. However, nobody has the glass bowl and can preview development on prices, interests etc., these are only estimations. If you want to discuss your personal situation, please feel free to contact me, you can also go on my landingpage and book a call: https://sabinekrauss.com/start Keep on going and move forward to your real estate dream for you and your family!

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A lot of customers ask here: Why? First, every bank is different. One part of the credit decision is the eveluation of the real estate. In the case of an older one, might be it is not financiable without modernization - since this enables the bank for better evaluation. On the other hand, the modernization costs a lot, which has to be financed on top. One bank evealuate a modernization with 100%, another once with 20%. Secondly, who is handling the modernization? Are you able to handle things by yourself, it costs only the material, might be you can bring your "Muskelhypothek" - usual a bank does not accept it, if you are a tax-lawyer in your real life. Or you have friends who help you - a quite difficult topic, since bank will not finance undeclared work. Third, a lot of banks do not finance too high modernization - in relation to the purchase price. You have additional questions, just contact me.

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The additional costs depend on the area you live (tax between 3,5-6,5%), how complex the land registration book/real estate object is (notary/land registration cost, normally around 1,75%), new or used object/object with or without real estate object. The amount of the total costs result in the "value" of your equity: You do not cover it, you cover it, you cover it with a surplus - this results in the loan value (=Beleigungswert), meaning which percentage of the total value will be financed with credit, triggering mainly your condition. Any additional questions? Just contact me.

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In today's podcast there is an overview about the amortization. Everybody is only talking: "What is your best interest?" How different bank are handling the amoritzation different. Is it better to pay higher amortization or working with Extra-payments. Just listen into it and contac me with additional questions.

Podcast von Sabine Krauß anhören:

People are approaching me very often, what is the interest you can offer. Before we talk about the offer, let me explain the different components and kind of interests. If you have further questions, please contact me.

Podcast von Sabine Krauß anhören:

A lot of my customers are foreigners, living for 3-4 years in Germany and want to buy their first real estate. This also has to be financed. The first steps are shown in my interview with me from Fabienne find finance. Just listen to it.

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As an agent I am standing between the bank and the costumer - I think with an advantage for both. I am able to explain the customer a lot of features in more details, warn customers about some things and help the banker to bring a lot of request in more details to the customer. On the other hand, I have always to fight on both sides. Not that I am going to be in line with everything what the bank requests, however, we need it for the approval. So, very often I try to do compromises and fight for my customer - however, it is not seldom, that I go back to the customer a 2nd time, to request the details and extend the process. So, it is easier, to deliver complete documents in good quality in the first step, it is a win-win to all, quick approval on one side, happy customer on the other side.

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After you signed the purchase agreement at the notary, you also sign the Grundschuld - the security for the bank. This also contains your personal liability, which sounds a little bit tough, however, you only owe the outstanding debt in total, this means also over your total personal assets. However, the bank would not like to sell your pictures on the wall, but they will pledge your salary and an asset account - but only if you do not pay your monthly salary. But don't worry, you will receive reminders before. For further questions, just contact me.

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It always happens that customers are not well informed and are totally surprised at the notary, that in the Grundschuld an interest of 14 or 15% is mentioned. Listen into the podcast to find out about the background of the high interest, which is not the interest of your loan????

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A Grundschuld of 300.000 does not mean that the value of the object is 300.000! How is the value of the Grundschuld linked to the value of the object? How does the Grundschuld comes into the land register? Any questions open? Please contact me.

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The security of the bank: Grundschuld, this week and the next 3 weeks will cover the topic Grundschuld. You, as customer, should understand what this is - you comitt yourself regardings your object and personal!

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Listen, this is important if your loan will expire soon and you will have an amount to be lock in, again. Then it might makes sense to lock in a binding interest today. The contracts starts to today, however, the new interest will start with the date the old contract will expire on. This is on one hand a calulation, on the other hand a personal expectation of the future interest development. If you have any questions on this, feel free to contact me.

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In today's podcast I give you an overview about the real estate financing market. I also give the recommendation going to an independent partner providing you an overview about the whole market, making the research for you and - if honest - trying to give you the best financing available for you in the market. Any questions - just contact me.

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This podcast is about the amortization: Normally banks require a minimum repayments of 2-2,5%, there is also a bank, which accepts 1% and there are some requesting 3%. However, a 2-2,5% is reasonable, for some customers with for example high bonus, it also makes sense to have a lower amortization, and shortens the tenor to a reasonable tenor by extraordinary repayments.

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This is one of the most discussions and explanations, I have with customers. Here we have to differentiate very strict: if the total running time is nearly 40 years, the lock-in period only 10, the customer takes a pretty high risk on his book. This can be ok, depending on the salary, alternative saving volume, bonus per year etc. At the end the customer can have this combination and accept the risk, if the risk is affordable for him, meaning the risk should only lead with a higher rate in a renewal case to a longer tenor, not to the sale of the object. Let's talk about this!

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This topic nearly comes up in every conversation: I would like to give you the different aspects of Corona which could be impact the realization of your real estate dream. You will discuss this further more along with your real estate investment? Just get in touch with me.

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Last week I talked about a mortgage in principal, this week I would like to go further in detail in different kind of loans, so annuity loan, repayment loan (with a repayment substitute like Bausparvertrag or life insurance) and variety loan.

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Today is the first sequence of my Finance ABC about the characterics of a mortgage. Any questions left, please contact me.

Podcast von Sabine Krauß anhören:

This week is only an announcement of my Finance ABC, which will start next week. In the following weeks I would like to look over the basis descriptions of descriptions and processes around the real estate financing in Germany. If there are any open questions, please contact me.

Podcast von Sabine Krauß anhören:

Help is only possible if the partner has the same information, regarding good and bad news - at the end it will come out. Our cooperation should be based on truth and fairness. A financial planing is long-term, so in the end it ONLY works if we both work in the same direction based on the same knowledge. At the end we build on your future. Looking forward hearing from you.

Podcast von Sabine Krauß anhören:

One of the most questions, I am asked. A pretty easy question, a very complicated answer, because a lot of "It depends on....". An finally it fluctuates. Even if we had a slow market for a long time, now it seems to start moving.

Podcast von Sabine Krauß anhören:

This is the question is most often asked at the beginning of every consulting. The question is not the "can" , it is more "how much do I want to afford" without having to much burden for the future. A budget planing with six numbers is done quick, however, the content behind is much more important.

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A difficult question, because there is more behind than only 9 words: Tenor, login-period, personal creditworthiness, kind of object, building year of the object and your personal requirements regarding a real estate financing.

Podcast von Sabine Krauß anhören:

This is - especially for foreigners - always a secret, which is very often not sufficient explained by the agent. The potential buyer always thinks that he buys cheap! Let me explain a little bit.

Podcast von Sabine Krauß anhören:

There are plenty of advantages like know how transfer, intermediary, independency, market research, best conditions, flexibility - just hear into it.

Podcast von Sabine Krauß anhören:

A little background for a Riester along with a real estate - and the advice, do not sign anything without having understood it completely.

Podcast von Sabine Krauß anhören:

There are situations where a Bausparvertrag might make sense - for a very long interest security, sometimes for better eveluation at some banks or for a better worst case cost calculation at a bank. However, it is not always recomendable and the most important thing: You have to understand what you are signing!

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I always see that international customers sign up for Bausparvertrag or Rister shortly before they buy a real estate with the argument the financing is then easier. Please, try to understand what your are signing! I try to give you a brief overview.

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The comittment Fee is always a difficult topic to understand. Most people are not concerned. Please find in the podcast an explanation of the comittment fee.

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How does it work with the credit process? How does it work with the notary process?

Podcast von Sabine Krauß anhören:

Yes, the market is currently a seller and not a buyer market. Yes, you should be good prepared, you should be motivated, full of passion, quick. And - don't let other people make to much pressure on yourself. It might take some time til you find your real estate, but don't buy every real estate to every price.

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This is an overview over the main risk. You do not have to cover everything 100%, however, you should be aware of the existing risks and you decide how far you would like to cover them. The main point is definetely paying back your loan.

Podcast von Sabine Krauß anhören:

One of the main thing in the credit approval process is the bank evaluation of your future real estate. Especially in times of increasing prices this becomes - next to your own creditworthiness- very important.

Podcast von Sabine Krauß anhören:

Every bank calculates different, this is the main point in the credit approval process on the personal side. The object side will come next week.

Podcast von Sabine Krauß anhören:

Even if the financing is relatively safe, I can promise, a bank may often see it different. There are a few examples for non-approval in the podcast.

Podcast von Sabine Krauß anhören:

An overview through the jungle, how to finance best in which situation and what kind of financings to exist in the real estate world.

Podcast von Sabine Krauß anhören:

The logic is based on your personal needs, being described by the magic triangle of the asset management with the 3 edges rentability, flexibility and security and is also valid for the real estate financing side. Furthermore the different objects for a real estate financing are highlighted.

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Overview over the additional costs in a real estate financing (real estate agent fee, notary costs, taxes)

Podcast von Sabine Krauß anhören:

Sorry, I do not explain it here, you have to listen to the podcast, however, it is really important. Enjoy the podcast.

Podcast von Sabine Krauß anhören:

Currently, we see increasing interests and also increasing cost for building materials (like wood, insulation material, steel...). What should you do now?

Podcast von Sabine Krauß anhören:

The target would not be only doing a quick real estate financing, however to be your partner in the whole process, which might be very different, denpending on your personal situation (salary, equity, single vs. familiy etc) and real estate (appartment or house, new or used)

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Before starting with a real estate search/financing there are a few preconditions which should be fulfilled. Please let me tell you about.

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This is the most important step at the beginning, so that you know, what kind of object you start looking at.

Podcast von Sabine Krauß anhören:

The main steps from the first decision til the moving into the dream object. The single steps will be described deeper in the upcoming podcasts.

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