In Germany, building money is a legal term from the law on securing building demands (GSB / BauFordSiG). According to Paragraph 1, Paragraph 3, this includes amounts of money that - unlike a personal loan - “the recipient of a third party for a in connection with the construction of the building or the renovation. ”Other subcontractors must also be involved in the work. Construction money is both equity and debt . In the German-speaking world, the term usually refers to the money that is additionally required for building and is usually raised through real estate financing , i.e. the loan amount.
The building money can be used for new buildings or the acquisition of land and residential property . Building funds are often given to borrowers in the form of annuity loans . When choosing a provider of building funds (banks, brokers and insurers), it is important to pay attention to the building interest regardless of the type of loan. Even small differences can make building money expensive.
- BauFordSiG , last accessed on October 29, 2014.