No, every era has or had its challenges. Knowing all the factors that make a sale easier and more secure is still helpful today.

Equity as a panacea for real estate purchases
The last few years have been tough for most Germans: after the horror of the coronavirus pandemic faded from people's minds, rising interest rates and higher inflation hit them hard. This made the dream of owning a home a distant prospect for many.
Cash isn't the only thing that counts
The first question is what is generally considered equity. It is not just paper money and savings parked in accounts; life insurance policies, building society savings, securities, real estate, and building plots are also part of the infamous equity.
Determining the equity ratio
Opinions differ when it comes to how much capital should be available if you want to realize your dream of owning your own home. Banks recommend a ratio of 20-30 percent. However, less equity is also acceptable. Ultimately, the money you can put toward the purchase out of your own pocket will affect the total amount and terms of the loan.
Equity as the holy grail
If you are wondering why equity capital makes bankers so happy, it is because it significantly reduces the bank's risk. The lower loan amount also reduces the risk of insolvency.
Saving made easy
Many people interested in real estate are unsure how to accumulate equity. Some find the undertaking seemingly impossible. However, consistency works wonders here. Simply set aside a fixed amount each month and you will be amazed at how much money you have accumulated after a few years.
No money, no honey
Of course, people with little or no equity can also purchase real estate. However, full financing costs more and the terms are longer.
A little tip to finish
Play it safe and pay at least the incidental purchase costs out of your own pocket. This will ensure you get favorable loan terms and make you a welcome guest at banks.
Would you like to purchase property or need advice on financing your dream property? Then get in touch with us. We will be happy to advise you.
Notes
For reasons of readability, the generic masculine form is used in this text. Female and other gender identities are expressly included insofar as this is necessary for the statement.
Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific case.
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