How should I pay my new condo?

19.07.2013 Real Estate no comments

On of the most important questions that a purchaser make itself is how could I pay my new condo? How does it Works? How could apply for a financing?

We are going to try to make your life a little bit easier with several post about this matter, but we think that we should start with the basic rules and after talk about how to get financing in a bank. The basic rules are concerning when and which amount should be pay according to the construction phases.

Before you sign any purchase contract of a new condo under construction you should consider that this will be very difficult if you don’t have or: the money to pay it (at least 80% of the total amount) or a letter from your bank confirming that they will be able to finance you and you could afford the flat.

Once this has been said, about the way your new condo will be paid is, as a lot of things in Germany is quite standard although it could defer a little bit depends on the developer.

When is payable any amount and which amount are we talking about?

The amounts are payable when the seller has proven to the Buyer that the building permit was granted and provides a written notification of the construction stage to the Buyer through the architect or the construction manager and if the following construction progress is reached:

1st installment – after the commencement of construction 30 %

2nd installment – after completion of Works corresponding to completing of the building shell 28%

3rd installment – for manufacture or roof surfaces and gutters, for the basic installation of heating, plumbing and electrical systems as well as for the installation of windows, including glazing 18.9%

4th installment – for interior plaster except for ancillary plaster work, for the screeds and for the facade work 8.4%

5th installment – after readiness for occupancy contemporaneously with transfer of possession and tile works in sanitary areas 11.2 %

6th installment – after full completion 3.5%

Nevertheless this figures could change and defer but the most of the times you will find this as a normal way to pay.

Additionally, due to the German regulations, these amounts should be guarantee and or they will keep frozen in a bank account or if the developer provides you a bank guarantee will be use only for construction porpoises

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