Buying or building a home is a big step. Knowledge is the key because the subject is very complex. Here you will find answers to the most important questions about your dream home.

When is the right time?

This question cannot be answered generally. It depends entirely on your personal situation. Do not allow yourself to be influenced solely by external factors, such as particularly favourable building interest rates. Sometimes it is worthwhile to wait a little longer, so that the personal conditions for the purchase of real estate are favourable.

Clarify whether your general conditions are right: Are you sure you want to build or buy a property? Do you have enough equity? What is the monthly charge that you can easily handle?

Discuss everything in peace with your closest loved ones.

Can I buy a property without equity?

Some credit institutions are currently even promoting so-called full financing without equity capital. This also sounds tempting and can be an option for builders with a secure high income. Those who earn well and have a secure job can cover unforeseen costs.

However, a risk remains in the case of equity financing. Because if the income drops unexpectedly, it can become tight.

We recommend at least 20 to 30 percent equity. Because the more equity you use, the less finance burden you have.

Which documents do I need to finance a house?

First, your bank needs all the documents of your desired property, for he can get an idea of the object. Please bring them the following documents: exposé, photos, purchase contract, building plans – in addition, when buying a condominium, the division declaration.

It is also important for financing how much equity you have. For example, saving accounts, saved capital from ready-to-allocate building-saving contracts, assignable buyback values from life insurance, assets from shares, mutual funds and securities.

Please provide proof. For the interview, you also need a list of your monthly expenses, salary payment of the past three months, and the last three tax returns. And please don't forget: your ID card or passport.

Which kind of fixed interest rate should I choose?

When you agree to a real estate financing with your bank, a certain interest rate of the loan and time will be specified. This gives you and the bank security about the terms of the repayment. In practice, interest rates are often fixed at 10, 15 or 20 years.

How much should I pay?

You pay off the real estate financing at your bank or savings bank in monthly instalments. You determine how much you want or can repay each month. Many therefore wonder what repayment rate makes sense in order to repay the loan as quickly as possible without taking over financially at the same time.

Your lender will require at least an initial annual repayment of one percent. However, if financially possible, around two percent is a better choice. Generally speaking, the younger you are, the more time you have to repay and the less you have to pay off per year.

On the other hand, you should choose a higher repayment rate, for example, in the case of follow-up financing if you are already a little older.

Ultimately, the repayment rate is an individual decision that should be adapted exactly to your own circumstances.

The real estate market in Germany is developing rapidly. German people spend more than 160 billion euro per year on real estate purchases – and the trend is rising. According to the real estate market report of the expert committees, sales in the real estate sector have also risen sharply in recent years.

The real estate market in Germany is developing rapidly. Especially in the big cities, renovations and new construction projects ensure that the supply of real estate meets the strong demand for housing.

In Berlin, Hamburg, Munich, Cologne and many other popular cities, buying a property is much more than a retirement plan. Even as an investment property, a house or condominium in the city is becoming more and more sought after. Germans spend more than 160 billion euros a year on real

In recent years, according to the real estate market report of the expert committees, sales in the real estate sector have increased by about 3 to 14 percent annually. This development takes account of the enormous demand and the new construction.

Due to the increasing availability of various properties – from small apartment to luxury real estate – it is important to get basic information before buying or selling.

Real estate mirrors help with valuation

If you want to buy or sell a property, the first thing must be taken into consideration is the value of the property. When buying a property, the most important criterion is the location. The better the location, the more stable the property is - and that's why it's more expensive there.

The location is unchangeable, but the condition of a property can be improved at any time by renovation.

Independent experts can offer help. This gives sellers and buyers, but also the deceased and heirs, divorcees and the dispossessed a realistic assessment of what the house or apartment is actually worth. Professional appraisers can accurately determine the value of a property. Individual factors such as the structure, environment and equipment of the object are important.

Review real estate markets and make a purchase decision

Thorough research and information give buyers and sellers an advantage in the real estate market. Although Germany is experiencing a strong new construction activity and is becoming increasingly popular with both newcomers and investors, the upward trend in the real estate market is different from place to place. In particular, it is foreseen that the conurbations will face an enormous increase in prices and demand, while real estate in rural regions and in the eastern part of the Federal Republic are sometimes difficult to buy due to lower demand.

Several insurances are recommended, so that you are prepared for the eventuality. As a builder, you need a builder's liability insurance during the construction phase. Because if someone is harmed on your construction site, you are liable. Construction performance insurance protects you from damage caused by theft, burglary, lightning and other destruction during the construction period.

Residential building insurance protects you against damage caused to your property by fire, water or storm. For owners and landlords, home and landowner liability are a must. It regulates damages if someone has an accident on your property, for example. What’s equally important: household insurance for damage to furniture and household goods. Often, this insurance also applies in the event of theft.

Have you bought a property? Then the entry into your own four walls can usually be done quickly. If you are building one yourself, there is still a long way to go before the house is ready for moving in. But you, too, have already achieved important stages.

If you have just bought a piece of real estate

The move-in is imminent. It's best to make a to-do list. From collecting keys to detailed planning of moving in. Does it need to be renovated beforehand? Then hire the craftsmen. To find a new kindergarten or school for your offspring; or to apply for a post order.

You have to re-register for a lot of things: for example, telephone and internet, your car, insurance, standing orders, possibly also your account. To buy important new insurance, such as residential building insurance.

If you construct your own house

As soon as the financing is available, your construction company submits the building application. Buying necessary insurance before construction begins. Check the progress on the construction site regularly. You may have an independent construction consultant who can assess the quality of the work. Do not pay invoices until the service has been performed and check them carefully.

After the topping-out ceremony, it is usually not long until the ceremonial handover of the keys. Report to the building authority when the construction is complete. And create your wish-list for moving in.