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Equity strategy
ImmobilienErwachsene
A plan for building up equity for a property purchase: calculate your savings goal, use an ETF savings plan, consider a building society contract, maximise your equity ratio.
The road to your own property begins with building up equity:
Step 1: calculate your goal: 20% of the purchase price + purchase costs (10–15%). With a €350,000 purchase price: 70,000 + 42,000 = €112,000.
Step 2: choose the right form of saving: for a horizon under 5 years: overnight money/fixed-term deposits. For over 7 years: ETF savings plan (higher return, but fluctuations).
Step 3: set your savings rate: €800/month for 10 years at a 5% return = approx. €124,000. Enough for the €350,000 property.
Step 4: use additional sources: advances on inheritance, gifts, home savings contracts, housing construction bonus.
Did you know? Banks recommend at least 20% equity. Financing 100% often costs 0.3–0.5% more interest – on €300,000 over 20 years that's €10,000–20,000 more.
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