It’s about a home savings contract from my parents, which is supposed to pass to me.
Nothing has been paid in for a few years.
There is a high probability that funding was not used.
He is 35% saved.
Contract amount 80k€
Rules amount 400€
Schwäbisch Hall Fox special fare
Contract start early 2019
Sparzinssatz 1%
Loyalty bonus option interest additional 1%
Borrowing rate for loans 1.950% effective annual interest according to Price Indication Ordinance 2.34%
There is a maximum annual amount and in order for the additional 1% guaranteed interest to be claimed, it takes at least 1 more year. I don’t know the exact time now. A higher amount of money would also have to be paid in, which I don’t exactly find easy to manage, but it wouldn’t be impossible.
I read this good post.
https://www.finanztip.de/bausp…bausparvertrag-kuendigen/
The money or a part will probably be needed in the next 1 to 5 years. So investing in ETFs doesn’t make sense.
I was offered to share the contract. I don’t really like that either, because it’s too complicated. I don’t really want 2 home savings contracts. I like it simple, structured and not so complex. A home loan and savings contract already overwhelms me
I don’t know exactly when I’ll need the money for what. I am also not exactly aware of the amount of maintenance on the house. A current cost estimate for the heating is approx. 25k€. Whether, when and how high exactly the heating replacement will be is still in the stars. That’s just the next maintenance, which will certainly come into play in the next 5 years, provided that the old house is still owned by then. There are also no plans to live in it for another 10 years. It’s planned, but not sure. Maybe it will be demolished. What is certain is that there is no desire to install a heat pump and solar cells, as well as thermal insulation.
If the heating fails and there are no more spare parts due to age, things have to be done quickly. That is probably. The heating is already about 25 years old.
So I thought about taking out a credit line. It’s not cheap at 5-6% at the moment or taking out a special loan for modernization from a financing broker.
With 1% current interest, the capital is also severely affected by inflation and is tied up for another 6 months. That doesn’t really help either, I guess. I would not be able to get any interest and would then have the money freely available again without a time limit.
The goal is probably to get out of the savings contract as cheaply as possible. Because actually it doesn’t really fit in which time and amount the loan taken out has to be repaid.
The money is urgently not needed – in the summer a heating system doesn’t break either, so I could wait 6 months
Are there invalid general terms and conditions for building savings contracts, similar to life insurance policies, and you could get even more money out of it than simply canceling it and then having the money freely available in 6 months.
How would you proceed and what criteria would you use to decide?
Would you still keep the savings contract?
What would be the cheapest way to terminate the home savings contract?
Thank you for your time and your feedback
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