Question 1

When is it worth buying instead of renting?

Accepted Answer

Particularly in German metropolitan regions such as Munich, real estate has been able to convince as a tangible asset with high value stability and highly attractive value development in recent years. If important criteria regarding location and infrastructure as well as structural quality are met, an investment in one’s own four walls is worthwhile – both for owner occupation and as a capital investment. Real estate can be a security for the future and a good retirement provision – you pay the rent now into your own pocket and ideally live in a paid-off property in old age. It is important to pay attention to a solid and clever financing: The share of equity should be at least about 30 to 40% of the purchase price, so that the running costs remain sustainable in the long term – purchases and vacations should also remain possible. Costs beyond the purchase – such as taxes, insurance, maintenance expenses – must also be considered. This is where independent financing advice from experts who analyze your personal situation and show you your financial options can help. Individual subsidy options, such as reduced-rate KfW loans for the purchase of a particularly energy-efficient property, are also factored in. And the current favorable interest rate level for loans also plays into the hands of real estate buyers. Once the financing framework is in place, the search for the desired property can begin.

Question 2

How do I find the right property?

Accepted Answer

It’s actually not that difficult: First, you have to be clear about what’s important to you. Central city location or rather in the green countryside, apartment or house, garden, balcony or roof terrace, distances to the workplace, school or kindergarten, shopping and leisure facilities… There is a lot to consider. Once the key data are fixed, you can start looking for your dream home. On our website, we present all current apartments and houses with all details – both on the object with architecture, floor plan and open space planning as well as on location and surroundings. At the same time, you will also find a large number of upcoming projects that we will be starting soon and for which you can already make a reservation. If you would like to be one of the first to know about a new Formhaus projectthen it is worth subscribing to our newsletter: Here we will present our new additions to you in advance and quite exclusively.

Question 3

How can I find out what I can afford?

Accepted Answer

The best thing to do is to talk to an independent financing expert. He or she will take a close look at your financial situation and put together an individual financing concept for you. This takes into account the equity you have saved, the loan requirements, the subsidy options and – independently of the bank – the payments for interest and repayment. It also includes ancillary purchase costs – notary fees and land transfer tax are added to the purchase price of the property. This gives you an important basis for knowing what you can afford in the long term.

Question 4

What costs will I incur in addition to the purchase price for the property?

Accepted Answer

The incidental purchase costs that are incurred in addition to the purchase price for the property are not insignificant.
These costs must be taken into account from the outset. If you buy directly from the developer or owner, you acquire the property without commission. If the mediation runs over a broker, a brokerage fee becomes. Notary fees are incurred by the buyer for the certification of the purchase contract. About 0.5 percent of the purchase sum costs the land register entry, which the land registry office charges for the registration of the property rights – ownership, mortgages or land charges. The tax office also makes demands: The land transfer tax is calculated proportionately to the total purchase price, and the tax rate varies depending on the federal state. In the case of banks and financial institutions, in addition to the fixed costs for interest and redemption, there may be further costs such as valuation fees or commitment interest in the event of a loan not being drawn down on time.
It makes sense to obtain comprehensive information on all possible ancillary purchase costs before making a purchase. To cover all aspects of financing and costs, consult not only financing experts and bank advisors but also your tax advisor or notary.

Question 5

What are special requests?

Accepted Answer

The seller provides an exposé in which illustrated representations make rooms or buildings imaginable by way of example. In addition, you will receive a building description that is binding for the construction and furnishing of the property: it contains detailed information on construction methods, materials and equipment components. If, instead of the planned floor plan and equipment variants – e.g. for floors, tiles, sanitary facilities – you want to implement individual wishes, these are known as special requests. These are possible in consultation and depending on the structural conditions, but may result in additional costs.

Question 6

What do I need to consider when financing?

Accepted Answer

Financing a property is about making a safe decision for the long term. This requires a balanced concept that rests on several pillars and incorporates several individual loan models – including
including home savings contracts, development loans and the like. It can also make sense to have different terms in order to have flexible fixed interest rates. Since mortgage contracts are fixed for many years, you can benefit from more favorable follow-up financing if interest rate conditions change. It should also be possible to make unscheduled repayments: This allows you to reduce ongoing loan burdens and reach the end of financing more quickly.
Our advice: Get detailed advice from financing experts before you buy: They will calculate a customized financing concept that takes into account your financial situation, possible tax advantages and government subsidies when buying real estate, and suggest suitable loan offers.

Question 7

How does the payment process work?

Accepted Answer

When buying an existing property, the buyer usually has to pay the full purchase price immediately. This is different for a new build property: as this is still in the planning or construction phase at the time of purchase, there is usually a payment plan according to the progress of construction. In this way, you gradually finance the lead time until the finished property is handed over and do not have to have the entire purchase sum ready when the purchase contract is signed. You coordinate the payment plan with your financing institutions and call in the corresponding amounts on the due date.

Question 8

What requirements should a future-proof property fulfill?

Accepted Answer

When we talk about sustainability in real estate, we are talking about value stability and value enhancement. There are a number of factors that give a property promising prospects for the future: The location should have a good infrastructure – ideally with transport links, shopping, dining and leisure facilities as well as medical care, daycare/schools and the workplace within easy reach. The property itself is considered sustainable if the construction and living quality is right – this includes the planning concept with architecture and cut as well as contemporary construction, technology and equipment of the property. For example, energy-efficient construction as a KfW efficiency house, modern heating technology, innovative technologies (such as fiber-optic connection, SmartHome or e-charging station) and brand-name fittings contribute to long-term value retention.

Question 9

What documents do I need for the financing discussions with the bank?

Accepted Answer

To prove your identity, please bring your valid identity card or passport.
with you. In order for the bank or financing institution to be able to assess your creditworthiness and credit standing, it is best for you as a private real estate buyer to submit proof of income for the last 3 months and your current income tax assessment. It is also important to provide evidence of other assets – insurance and building society contracts, securities, other real estate and tangible assets. As a self-employed person or freelancer, you should have a current business management evaluation as well as the most recent annual financial statement and several income tax assessments for the last few years to hand.
A credit check at the Schufa can be obtained directly by the credit institution, you have given an authorization by your credit application. In addition, you will need all available information on the property purchase for the financing meeting – this includes the site plan, the building description, the area calculation, a total cost calculation, the building permit and declaration of partition as well as the extract from the land register.

Question 10

What documents do I need for the notary appointment?

Accepted Answer

You will receive detailed contract documents from the seller – including special requests and payment terms. The seller brings several copies of the latest version of this purchase contract with building description and declaration of division to the notary appointment. It is read out by the notary and signed by both parties. The presentation of the identity card or passport is required in advance.

Question 11

How is the value of my property determined?

Accepted Answer

As a real estate project developer with 40 years of experience, we know the real estate market in Munich and the region like the back of our hand – and can use this expertise to assess the market value of the land in these locations. If you would like to sell your property, with or without old stock, we are a competent and serious partner – and will submit a binding purchase offer within 24 hours.

Question 12

Can I sell my property myself?

Accepted Answer

If you intend to sell your property, you have come to the right place. You don’t need a professional agent or broker for this, because selling to us is unbureaucratic, fast, fair and transparent. The special advantage for you: Because we develop real estate projects ourselves, we can assess the construction potential that your property offers – and include this in the purchase price, which may then be significantly higher than you expect.

Question 13

Broker or real estate company - to whom should I sell?

Accepted Answer

To do this, you need to know: The brokerage business is purely an intermediary business that brings sellers and buyers together. The professional handling of this mediation naturally costs money. As a real estate company, we buy your property directly – in order to realize new construction projects. We therefore evaluate your property from the point of view of the planner and realizer, can recognize hidden potential and offer a real, market-current price. This eliminates time-consuming negotiations, and you immediately receive a concrete offer including confirmation of financing – for maximum security in the sale.

Question 14

How does the purchase process work?

Accepted Answer

As a basis for our offer, information such as address and property size is required. In addition, you may tell us whether there is an existing building on the property, when it was built and what key data you have on it. We will take care of everything else: We will prepare a purchase offer for you within 24 hours, taking into account the current price trend on the market as well as the potential of the property. If we agree on the price, you will receive a notarized contract agreement for review and the financing confirmation to secure payment by us. If everything is as it should be, we take care of the notary appointment, where the property is duly transferred to our ownership.

Your questions – Our answers