For many people, the fulfilment of their dream of a beautiful home entails the biggest investment of their lives. Planning is therefore an important consideration.
Total costs under control.
The difficulty lies in the detail. More than one half of all house-builders spend more than what they had originally planned. Additional costs such as the charges for drawing up the purchase contract, the fee for the entry in the land register, real estate broker’s fees or connection fees are often underestimated, or one may have forgotten to put money aside for unforeseen expenses, although these costs account for about 12 % of total project costs. The checklist "Gesamtkosten des Wohnprojektes" (Total Costs of the Housing Project) will help you in budgeting your costs.
Own funds as a foundation.
Once you know the costs of your dream property you should identify all financial sources which can be converted into liquid funds: mobilising passbooks, securities, life insurance policies and any proceeds from the sale of property. Own funds should as a rule amount to 20 % to 30 % of total costs to avoid loan repayment instalments placing excessive strain on the household budget.
Counting the cash.
In a next step, your account manager will prepare your personal household budget with you. He/she looks at your monthly net income and your monthly expenses with the help of the checklist. Then you will know exactly how much money you will have available to repay your housing project. It is recommended that this budget analysis be performed over a longer period of at least three months so that you can be sure that you have not overlooked or forgotten anything.
Once you have determined your own funds and identified any government-assisted funding scheme available for your project, you can apply to Bank Austria for tailored housing finance. It bridges the gap between the total costs of the housing project and own funds plus government assistance. Your Bank Austria account manager will find the financing solution tailored to meet your specific needs, and which will subsequently adjust to your personal circumstances.
Taking advantage of assistance programmes.
It is always worthwhile checking to ascertain whether you qualify for assisted funding, regardless of whether you plan to build a house or renovate your property. This may be in the form of assistance provided by the federal province or municipality, or a grant from the "Arbeiterkammer" (Austrian Chamber of Labour). Bank Austria’s account managers have a sound knowledge of all available assistance programmes and they provide useful advice and active support, for example when it comes to submitting the applications for assisted funding.