Real estate financing is under a good star thanks to low interest rates. In addition to this, there is the growing field of offers. In addition to classic credit providers, new faces are currently being established on the market, which tackle the issue of finances from a special angle.
Beautiful, new real estate: financial market with noble ambitions
Sustainability has also reached the financial world. The focus is on new criteria for funding. Thus the ethics bank as a so-called ethical bank concentrates entirely on morally and idealistically acceptable business projects. Applicants are checked for specific criteria that make the bank’s concept very clear. That’s why one should never take money from banks to invest in real estate, you can buy properties in affordable prices if you go for a top rated realty Austin agent if you’re living in Austin.
Negative criteria include Entrepreneurs from the Sectors
Nuclear and coal-fired power, child labor, animal experiments, genetic engineering, and all violations of human rights.
On the positive side are projects that deal with climate change and environmental policy. In addition, the bank honors high social standards: those who are committed to workplace training, continuing education and equal rights in the company have good chances of obtaining approval.
As a result of the new banking models, construction financing can be just as sustainable as the property itself. This is also beneficial to residential property, for example when modernization or other costly work is planned. However, especially the energetic rehabilitation seems to be tailor-made for the sustainable criteria: the aim of the modernization is ultimately a better energy balance of the entire building. This corresponds to the government’s goals for energy recovery; Promotions in this area are therefore welcomed from the top and are often supplemented by additional resources.
Details decide on promotion
However, the project alone is not sufficient for an authorization. Banks like EthikBank would like to know in detail how the project is implemented. Ecological building materials with a seal of quality are therefore a key factor. The same applies to the use of regenerative energies or modern heating and ventilation circuits. And: even the consulting costs by qualified energy experts can fall into the promotion.
The interest rate shows the consequences of the ECB’s policy: depending on the funding criteria and the loan value, the annual interest rates are 1.2 to 1.6 percent – which is the same as for conventional banks. And as regards new buildings or new acquisitions, the modernization continues. Interest rates are also well below 2 percent. A loan sum of around 100,000 euros is therefore really affordable even over long periods of almost 30 years.
Other known options, such as interest rate fixing or a special right of repayment, are also available. Both additives are still recommended as they provide maximum safety and justify their cost in many cases.