Housing Riester: Promotion of owner-occupied residential property
For many people, retirement planning does not start with the saving on account , but at home. They want to own their own property shortly before the pension and pay no rent. The state supports this thinking since January 1, 2008 with a grant. Homebuyers and homebuyers get them if they own the home.
State Injections are the most interesting help for most people when they buy property or build a house. The reason: nothing is safer than money from the state. In light of rising rents and real estate prices, this form of old-age provision makes more sense. After all, good investments in the stock and interest market are still difficult or not very profitable.
Persons eligible to receive benefits after & sect; 79 EStG :
- Officials and recipients of emoluments
- Compulsory insured persons in the statutory pension insurance
The following subsidy plans provide for the homeowner's pension model :
- Already in the accumulation phase interested parties can save up to 100% of their assets that is tax-advantaged in an existing Riester contract for the construction or purchase of a property. The repayment of the amounts is not necessary.
- As an alternative to withdrawing capital, consumers may use the already accumulated retirement capital to repay a self-used property.
- Subsidies are also subsidized Loan Agreements , provided it is is a home use. However, the following applies: Loans must repay anyone who is interested until the age of 68.
As mentioned above, basically is eligible for all statutory pensioners . Self-employed persons can avail themselves of support via the spouse. Here, too, the usual conditions apply: Who each year four percent of the gross income from the previous year flow into his Riester contract, receives up to 154 euros per year as a promotion. As long as there is entitlement to child benefit, there is an additional 185 euros per year for each child. If the children were born from 2008, there are even 300 euros per capita. Also handy: Deposits in Riester contracts can deduct families as tax expenditures.
Problems in Old Age
Despite the aforementioned benefits of the Riester model, support is not recommended for all consumers. The subsidized property must be used as main residence . Interested parties can only rent their property up to the age of 67 under certain conditions. There are also restrictions on selling: the proceeds of the previously funded capital must flow into a new Riester product. In addition to these disadvantages, taxation is the biggest stumbling block: the homeowners' pension is included in the tax burden in retirement, as with Riester pensions. The tax office leads to a housing subsidy account, with the help of which a notional pension is calculated. In the worst case - especially for families without children - it can happen that they later repay more to the state than they received before. Whether the Riester model pays off, each family must individually determine .
A married couple has an annual gross income of 50,000 euros. Four percent of the income, ie 2,000 euros, should be used for old-age provision. A total of 793 euros are used up by basic supplements: 308 euros for the couple and 485 euros through child allowances. The own contribution is therefore € 1,207.
For the example, we use an interest rate of four percent. After ten years, the family would have a credit in the amount of 24,973 euros in a Riester contract. The credit could use them for mortgage lending.
For the financing of the dream property , the couple will receive from a bank a construction loan in the amount of 40,000 euros with a term of 20 years. Supplements over 13,435 euros are provided by the total loan amount. The basic allowance includes 6,160 euros (20 x 308 euros) and 7,265 euros for the child allowance (15 x 485 euros).
A total of 65,000 euros is available for mortgage lending. In the housing promotion account, the repayment amount and the subsidized withdrawal amount are reduced by two percent. Over a term of 30 years, the sum of 86,675 euros will be taxed for 20 years. At a tax rate of 15 percent, the family receives a monthly tax contribution of € 54.
Attention : In this example, fees and interest on loans are ignored. Supplementary payments are added in each contribution year. Child allowances were taken into account over a period of 25 years: 10 years in the austerity phase and 15 years in the repayment phase.
|(1) Basic assumptions||Euro|
|Married couple (35) Income||50,000 Euro|
|1 Child before 01.01.2008, 1 child born thereafter|
|(2) Determination of savings||Euro|
|max. Provision per year 4%||2,000|
|Basic supplements per spouse 154 €||308|
|Child allowances (1st child 185 €, 2nd child 300 €)||485|
|Deposit in Riester contract with 4% interest|
|Withdrawal after 10 years (with 45 years)||24,973|
|of which allowances including 4% interest||9,527|
|(3) Admission of the construction loan||Euro|
|Duration: 20 years|
|Repayment on own account||26,565|
|Repayment on allowances||13,435|
|(4) Available for mortgage lending||Euro|
|(5) Tax and housing subsidy||Euro|
|after 30 years||86,675|
|Tax liability: 15%||13,001|
|distributed over 20 years||650|
|Monthly tax burden||54|
|Subsidies subsidies (savings)||7,930|
|Supplementary allowances ( Repayments)||13,435|
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