The average construction financing loan in 2016

The average construction loan not only shows that borrowers are putting more and more money into financing for condominiums and houses. The average construction loan also shows in which regions the economic strength and thus the financial strength of private households is strong or weak. Looking at the average construction loan for 5 years at ACCEDO, an average of 150.000, – Euro financed. Today is already the 200.000,- Euro mark broken through. This is due to several factors. But the more expensive purchase prices are only one of them.

The average construction loan: urban or rural, western or eastern Germany

For all those who are constantly informed, this factor is not news. While purchase prices are particularly high in cities such as Hamburg, Munich, Frankfurt/Main, Freiburg and Dresden, rural regions in eastern Germany have long been left behind. Not only in economic and purchasing power, but also in real estate prices. While in Hamburg the average construction financing loan at almost 350.000,- Euro, in Saxony Anhalt only half of this amount is needed. These data, which finance expert Dr. Klein has determined, are therefore no wonder. Whereby he only calculated new financing for the purchase of a property.

The financial supervision Bafin however comes on a completely different value. Here, 110.000, – Euro spent as the average construction financing loan in 2016. As is so often the case in statistical methodology, the number differences result from the survey method. The Bafin namely befrate only no and medium-sized banks. However, these tend to be financed in rural regions. In addition, Bafin also included all loans that relate to refurbishment and modernization. Nevertheless, both results show: in the rural area one finances more often a new building. In the metropolitan areas and high-price metropolises rather a condominium resp. an existing property. This is also not surprising at first.

The average construction loan is increasingly being put into renovations

When we at ACCEDO look at our financing projects in 2016, it is particularly noticeable that the volumes for refurbishment and modernization have increased conspicuously. From our experience, this mainly concerns existing properties that have more than 20 years under their belt. The money spent on this seems to be well invested. Can one thereby the value of the real estate for years secure and if necessary also the following generation in good condition bequeath. On the other hand, this is also an amount for asset protection. Because the interest rates, which are currently called for a normal or for a KfW-subsidized construction financing, are as favorable as never before. And since many borrowers also contribute at least 30 to 50 percent of their own capital, the average home loan becomes particularly favorable.

This type of asset protection is more likely to affect older borrowers who have already purchased or inherited a property years ago. The younger ones put their money mostly into the first financing or into the settlement of the. in the purchase or construction of new real estate.

In the countryside, borrowers tend to be young and build a home

Basically, the average age of real estate buyers is getting younger. Certainly also an effect of the so-called housing loan directive, which roughly speaking requires that the loan be fully repaid by the time people reach retirement age. On average, borrowers in Germany are under 40 years old. In cities, however, at nearly 42 years. This is due in particular to the development of the purchase price of urban real estate. For this, the borrower must already have saved up quite a bit in order to be able to enjoy (favorable) construction financing at all. In the countryside, this happens more quickly, because the prices for new construction or purchase have long since decoupled from the development of the metropolitan areas.

Particularly in the east – and there in Mecklenburg and Brandenburg – the borrower tends more to new construction. But Thuringia, Saxony and Saxony-Anhalt are also ahead of all western states in terms of percentage of new construction. Here, too, the explanation is rather simple: In the east, the old buildings are usually so dilapidated that renovation is no longer an option.

The average construction loan in 2016: over 200.000,- Euro financing for the purchase of property

Add to that ca. 130.000 in personal funds that the average property buyer invests in financing or. in the settlement of the purchase additional costs brings in. Looking at the available figures for the past year 2016, a value of approx. 350.000.- Euro reached , which you have to put today in the purchase and the additional costs. At the same time, one should finance more than 30 to 50 percent of these costs out of one's own pocket and not be older than 45 years of age. Then there is nothing standing in the way of a construction financing without risk.

Since its introduction a year ago, the Residential Mortgage Directive has kicked up a lot of dust. While the law had an important goal of protecting private borrowers from overindebtedness. However, the real estate loan ceiling at the same time brought the problem that since then, young families and older people interested in loans have not been able to get money from banks. The particular problem of the first bill: ..