Muscle mortgage to strengthen the equity base in the real estate credit Berlin, in most cases, 23.02.2012 – the recording of real estate financing is one of the most important decisions in the life of the borrower. Fails the planned repayment, this means not only the loss of the property, but is often also the financial ruin. The decision for a real estate property and matching funding is therefore of very great importance. Experts recommend a minimum capital base by 20 percent to 30 percent each borrower to have sufficient room for additional costs and unforeseen expenditure. In this context is often by muscle mortgage”spoken: the possible contribution in the construction or acquisition of real estate is meant hereby E.g. costs for foreign laborers to save and thus to reduce the need for foreign capital. Since a great deal of power therefore has influence on the equity ratio, a loan decision as circumstances can be positively affected.
What opportunities and risks are there? Basically, can the real estate buyer or the client provide a large quantity of own services. This ranges depending on the personal skills from the walls and plaster over the construction of the garden to the interior work such as electrical, the flooring or the pipe connections. It is important that a suitable dates planning in the entire project cycle is fitted. Craft labor costs can be reduced to, the financial risk of falls due to a lower loan to value and not fully controllable craft bills. However, there are also some disadvantages in mind: the time is often underestimated.
Problems can occur due to the generally lower qualification and missing routine, remedying takes longer than originally planned. In the worst case, the quality problems are not noticed and lead to considerable extra costs later. The material costs continue even when power – if necessary even more expensive than in an exporting operation.