Potsdam (ots) – The LBS East German Landesbausparkasse AG looks back on a successful year 2018 back. In gross new business it has until the end of a volume of 2,63 reaches billion euros. This is an increase of 11 Percent over the previous year and is the largest increase since 2008.
“We go with a good result and optimism in the new financial year. Bausparen is especially in the current situation a particularly attractive financing instrument. Our customers secure the low loan interest rates in the long term and realize their dream of owning a home more affordable than ever before”, said Werner Schäfer, Chief Executive Officer of LBS Ost. Good conditions and the relatively still affordable property prices allow broad sections of the population, to buy residential property. In East Germany's own four walls are currently so popular as never.
Impulse for the savings business leads Werner Schaefer also due to government funding. The increase in the Riester basic allowance to 13,6 percent in early 2018 was a clear signal of politics, to strengthen the state-sponsored retirement with real estate continue. The new Baukindergeld is in the business field of LBS Ost, the states of Brandenburg, Mecklenburg-Vorpommern, Saxony and Saxony-Anhalt as well as the eastern part of Berlin, additionally 18.800 put families in a position, to buy residential property. This is the result of a model calculation of the Research Institute empirica. By the end of December have already been 7.000 submitted applications.
However, further government initiatives to capital formation are needed, to young people in particular to motivate early savings and thus allow them the way to home ownership. In addition to capital accumulation benefits provided for in the coalition agreement rectification is in the housing bonus with contemporary promotional income and income limits an extra incentive.
The strengthening of home ownership and the increasing evidence of a turnaround in interest rates of the savings agreement to develop its particular strength. Its core benefit is the protection against rising interest rates. The purpose products developed LBS East are received by customers. “Among these positive signs, we expect a further increase in earnings in the year 2019 out”, Werner is optimistic Shepherd.
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Original content of: LBS East German Landesbausparkasse AG, news transmitted by currently