It was cheap, never to borrow someone else’s money. This opens up new strategies – especially when buying a house.
An ll get upset about the low-interest rates on. But who wants to buy a house, cheers. Personal loans now less than two percent, which has never happened before. So low-interest rates to stimulate thought patterns that previously did not make sense. Today they can be useful. And home buyers save a lot of money.
Editor in the department “Money & More” the Frankfurter Allgemeine Sonntagszeitung.
So far, it was clear: If the home purchase decency, all the savings were scraped together to finance it. At least to bear the building costs, ie mainly brokers, property taxes, and notary fees. Up to ten percent of the house price makes it. If anything was left over from Ange divisions, it was used to put it in the financing of the house.
The loan from the bank could then be correspondingly lower. Later, when the credit was already running a few years and the homeowner got a large sum of money – for example from an inheritance, severance pay or a bonus – it was used for special repayments of Baukredites. That is, it was repaid more than agreed upon so that the house is paid off faster.
In the new era of micro interest rates, however, a different approach might be less expensive. Who invests in equities in the long term, can achieve significantly higher returns than he paid for the construction loan interest rates. So why sell the shares and put the money into the house? It could offer instead to retain the shares and to agree a higher loan amount for the purchase of the house. Most banks allow. Later, larger amounts of money they can not be used for unscheduled, but also for stock purchases.
A look at the performance of stocks suggests such an approach: Since the seventies, the German share achieved in the Dax in average pre-tax return of 8.3 percent a year. This has the VZ VermögensZentrum for the Sunday paper for an investment period of 15 years of all things – the frequently dialed term interest rate for construction loans and therefore comparable. During this period, investors have despite all interim shares crash never made losses but in the worst case two percent, at best, but 15.7 percent gain in the year.
Two sample calculations of FMH financial advice for this newspaper will now examine whether the strategy would be worthwhile (see chart). Reckoned they were once with seven percent and the other time with conservative four percent pre-tax return each year. Seven percent scored the share portfolio according to the calculations of the VZ wealth center with a probability of 65 percent, four percent return with 94 percent probability.