Experience of KfW funding for Genossenschaftsanteile?

6 posts in this topic

Has anyone had a successful experience of applying for KfW support to buy a Genossenschaftsanteil?

 

I live in an apartment block that's being sold. It's located in a Milieuschutzgebiet so an interested Genossenschaft can with our consent take over the purchase, thus giving us security of tenure. Happily we have found such a Genossenschaft. We need to fund part of the purchase through buying Genossenschaftsanteile. We want to make this happen, albeit a few of us would need credit to afford it. That's where KfW come in: they provide "Nr. 134 KfW-Wohneigentumsprogramm – Genossenschaftsanteile: Kredit für den Erwerb von Genossenschaftsanteilen für eine selbstgenutzte Genossenschaftswohnung"

 

There are two ways to get it – both through a consumer bank rather than KfW, who have no branches nor other customer-facing apparatus apparently. The first is to have a Wohnberechtigungsschein, which we're applying for but think we won't get. The second seems utterly Kafkaesque. IBB have advised, through two different people today, and separately to the Genossenschaft, that without a WBS they will happily provide the credit but only if the borrower sends the bank the money first. Yes, you read that correctly. The bank will only offer the credit under the condition that the borrower pays the bank the money beforehand, as "security" (Sicherheit). They added that in the end no-one ever takes them up on this offer. (What a shocker!) While my German is decent enough, in this case my native-German speaking partner spoke at length with the bank, as did the Genossenschaft, so this is not a mistaken translation. 

 

Unsurprisingly, I'm loath to believe that what we're being told could possibly be correct. Does anyone have any conflicting experience or knowledge here? My assumption is of course that the bank are either idiots, or are pretending to be so they don't have to go through the hassle of handing out low-interest credit when they could be doing something more financially productive. Regardless, it would be great to hear any leads on this matter...! At least in part so I don't have an aneurysm.

 

ps. we have tried other banks (in my partner's case Sparkasse, who just said, no, we don't do this, but would you like to buy a financial product from us), but not *every* bank. I can't say categorically now, but if I remember correctly IBB was the one suggested by the Genossenschaft originally. Before hearing about the policy noted above, obviously.

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May one ask, how much does the Genossenschaftsanteil cost? My Genossenschafts-bank wanted about 50 € I think.

 

Does it work the same as a Kaution, or is it additional to that? Happen one could get a credit on the certainty of getting the cash back when one moves out?

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In our case it's relatively expensive (ca. 250EUR pro qm) hence why we're trying to get a loan.

 

We're told the high cost is a consequence of the building sale price being way above what the Genossenschaft, and the Stiftung that stands behind it, would usually seek to pay. 

 

The whole process and the status of the Anteile is actually a bit involved, and while I believe I understand the gist (we'll pay a Pflichtanteil which is effectively just the Kaution, at the kind of amount you'd expect, and then on top we pay the big Anteil, which we get back if we move out) there are more details that I'm concerned I would mess up in trying to explain.

 

In a commercial setting, the suggestion you make (basically, securing the loan with the Anteil) would likely be the smart solution, but unfortunately given the context and the values we're talking here I doubt the bank nor the Genossenschaft will want to get involved with any sort of contractual structure that deviates from the norm.

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Is the organisation a true traditional Genossenschaft, or just something like one? Seems an awful lot. I think the Anteil pays a dividend or interest, with the bank it does (not much). One should be able to trust a Genossenschaft but who knows whether things may change, what is in the small print, how much you may get back in ten or twenty years?

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I'm not sure I'd be able to say whether it's true/traditional, but it's been going for decades and has a bunch of properties in the city.

 

Part of the Anteil earns 1% pa interest. There really isn't a lot of small print, but it is the case that any voluntary shares need to be held for 5 years minimum ie. a long wait for that part to be paid out if we leave. Still, my/our view is that we'd much rather have a landlord who is obliged to stick to providing homes at a manageable rent than try our luck with commercial landlords. Fingers crossed it turns out the way we're hoping.

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Say the dwelling is 100 m2, the Genossenschaftsanteil would be 25 000 €. Seems an awful lot to me, I should ask round, check websites in German if there is talk about such things. Almost makes me suspicious

 

In some parts of Germany one may even now buy a dwelling outright for 25 000 €. My dwelling is rented from a staedtische gesellschaft, deposit is three months rent. There is a Genossenschaft renting homes here too, I imagined the 'deposit' situation there would be similar, a few hundred Euro G-Anteil

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