If you’d like to buy real estate, you should familiarize yourself with the running costs you will face before you buy.
In general, you can assume that maintenance and ancillary costs will amount to 1% of the real estate value.
The cost includes water, electric, garbage disposal, heating and upkeep. The maintenance costs are expenses for maintaining your property, for example, for small repairs and taking care of the surrounding area and garden.
In general: All monthly incidental costs for your property should not be more than 33% of your gross income.
Allow for interest rate costs / amortization
Ancillary and maintenance costs are only one aspect of your running costs. When you buy real estate, you must also factor in mortgage interest and possible amortization.
To calculate the mortgage interest, take an average rate of 5%. This will ensure that you can afford your mortgage even in a period of high interest rates.
What will happen to interest rates?
Our interest rate forecast keeps you up to date with the current interest rates and how they're likely to change – free of charge by email.
Generally, you get the borrowed capital from the bank divided into two mortgages. The first mortgage finances two thirds of the borrowed capital, while the second one finances one third. The second mortgage must be paid back within 15 years or before retirement. Therefore, you should budget approximately 1% of the total borrowed credit per year.
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