Université Paris 1 Panthéon-Sorbonne
Séminaire „Contrôle – Audit – Finance“
Bausparen – A system invented in
Baden-Württemberg and exported to
Europe and the world
Stuttgart, May 8th 2014
Jens Kuderer, LL.M.
Jens Kuderer, LL.M. // Stuttgart, May 8th 2014 Arbeitsgemeinschaft Baden-Württembergischer Bausparkassen
The Arbeitsgemeinschaft Baden-Württembergischer Bausparkassen is concerned with issues directly or indirectly relevant for home ownership as an element for stable asset accumulation, retirement provision and social stability
Bausparkasse
Schwäbisch Hall AG
Deutsche Bausparkasse
Badenia AG
LBS Landesbausparkasse
Baden-Württemberg
Wüstenrot
Bausparkasse AG
ARGE-institutions
Other private
Bauspar-institutions
Other public
Bauspar-institutions
19,4%
29,3%
51,3%
Members of the Arbeitsgemeinschaft
Baden-Württembergischer Bausparkassen (ARGE)
The institutions forming the ARGE represent more than
50 % of the German bauspar-market and employ about
10.000 members of staff in Baden-Württemberg
The Arbeitsgemeinschaft Baden-Württembergischer
Bausparkassen
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Net-new business
production 2012
Jens Kuderer, LL.M. // Stuttgart, May 8th 2014 Arbeitsgemeinschaft Baden-Württembergischer Bausparkassen
Bausparen and home owner ship are important factors of
private assets and financial precautions
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Percentage of home ownership
Number of Bauspar-contracts
Bauspar-amount per capital
Average Bauspar-amount
per new contract
Germany
Baden-Württemberg
Germany
Baden-Württemberg
Germany
Baden-Württemberg
46 % of all apartments1
53 % of all apartments2
443 of 1.000 inhabitants4
9.830 Euro 3
13.300 Euro 4
367 of 1.000 inhabitants3
Germany
Baden-Württemberg
32.320 Euro 3
37.600 Euro 4
Bausparen is a significant element of private financial capabilities in Germany
Quellen: 1 Stat. Bundesamt 2 Stat.Landesamt 3 Bundesverbände
Bausparkassen 4 ARGE
Home ownership is propably the widest spread and socially best
balanced form of wealth in Germany. This is the result of a well
established financial culture which doesn‘t look for „quick wins“ but
is aimed at long lasting and stable values
Jens Kuderer, LL.M. // Stuttgart, May 8th 2014 Arbeitsgemeinschaft Baden-Württembergischer Bausparkassen
If every potential home owner saves only for his own house,
it takes each of them ten years, until they have enough
money to built it
Ten potential home owners, each of them
is able to save 10,000 € p.a.
Costs for one house
are 100,000 €
Saving for an house takes time…
Example:
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Jens Kuderer, LL.M. // Stuttgart, May 8th 2014 Arbeitsgemeinschaft Baden-Württembergischer Bausparkassen
The 1st one can buy or
build a house by drawing
on the savings of the
other nine
Year 1
All of them are able to buy or
build their houses by using this
system, 4.5 years earlier on
average as if each had saved
the necessary money alone
Year 10
The 2nd one can realise his
house by drawing on the
savings of eight plus the
redemption payments made by
the first one
Year 2
Potential home owners pool their money in a common fund
The basic Idea: help for self-help
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Example:
Jens Kuderer, LL.M. // Stuttgart, May 8th 2014 Arbeitsgemeinschaft Baden-Württembergischer Bausparkassen
Self enclosed system
Deposits of the Bauspar customers
Deposit interests paid by the Bauspar institution
Repayment amounts of those Bauspar
customers, who have already obtained
a loan
Possibly Government subsidy (premium)
All deposits and repayments made flow
into one fund from which in turn new
loans are issued
Bausparen: A self enclosed system
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Bauspar
Customers
Govermental
premium
Loan
repayments
Interests obtained
Funds in Bauspar account
Guarantees sustainability
and independence
Jens Kuderer, LL.M. // Stuttgart, May 8th 2014 Arbeitsgemeinschaft Baden-Württembergischer Bausparkassen
Deposit
Loan
Fin
ancia
l ta
rget
(Bauspar-
am
oun
t)
Savings period Allotment Loan period
The architecture of a Bauspar-contract
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generally about 40 % generally about 60 %
Jens Kuderer, LL.M. // Stuttgart, May 8th 2014 Arbeitsgemeinschaft Baden-Württembergischer Bausparkassen
1924 Foundation of the first Bauspar-institution, the “Bausparkasse der Gemeinschaft der
Freunde Wüstenrot” in Baden-Württemberg
Till 1931 Founding phase of the majority of German Bauspar-institutions
1991 Amendment of the Bauspar Institutions Act allows operations in other countries
Drawing of the Bauspar-
customers who will get the
money to build their houses
(allotment) in the 1920‘s in
Wüstenrot
About 90 years ago the first Bausparkasse was founded
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Jens Kuderer, LL.M. // Stuttgart, May 8th 2014 Arbeitsgemeinschaft Baden-Württembergischer Bausparkassen
Seite 9 24.06.2015
TB = Tilgungsbeitrag
D = Differenz Bausparsumme / Bausparguthaben
ZF = Zinsfaktor
SHS = Summe Habensalden
G = Bausparguthaben
Today a allotment is calculated using a mathematical assessment process
Relevant for the allotment is to reach the „Bewertungszahl“ (evaluation figure)
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Calculation of the Bewertungszahl (BZ):
BZ =
200 x TB
D / 1000 + ZF x D x D / (SHS + 3 x G)
Jens Kuderer, LL.M. // Stuttgart, May 8th 2014 Arbeitsgemeinschaft Baden-Württembergischer Bausparkassen
22 Bauspar-institutions
12
private
institutions
operate all
over Germany
legally
indipendent
institutions
10
public
institutions
operate in
regionally
defined
markets
institutions
incorporated
under public
law or in public
ownership
30 mill contracts
824 bn € Bauspar-amount
33 bn € payment of building
capital (deposits and loans)
in 2012
The average Bauspar-amount
is 30,000 – 40,000 €
Bausparen today (in Germany)
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Jens Kuderer, LL.M. // Stuttgart, May 8th 2014 Arbeitsgemeinschaft Baden-Württembergischer Bausparkassen
Countries in Europe already
working with the Bauspar-system
Germany
Austria
Slovakia
Czech Republic
Hungary
Romania
Slovenia
Croatia
Luxemburg
Belgium (special conditions)
First steps
India
China
Kazakhstan
Interested
Russia
Peru
Ecuador
Chile
Vietnam
Thailand
Chile
Switzerland
Bausparen today (worldwide)
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Jens Kuderer, LL.M. // Stuttgart, May 8th 2014 Arbeitsgemeinschaft Baden-Württembergischer Bausparkassen
US-Loans Bausparen
100 % mortgage
+ up to 20 % on top
Conservative mortgage limit
(usually 80 %)
No equity required Equity required
Volatile interest rates Fixed mortgage interest rate till the
loan is paid back completely
Customers without sustainable
financial capability get loans
The customer has proven his financial
capability during the savings phase
Low requirements on the solvency of
the institutions
Governmental supervision and strong
restrictments
Differences between the US-Loan system and the Bauspar -system
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Jens Kuderer, LL.M. // Stuttgart, May 8th 2014 Arbeitsgemeinschaft Baden-Württembergischer Bausparkassen
Bausparen is more than buying or building houses:
Accumulation of capital assets
Securing the value of wealth by investing in
real estate, especially in times of inflation
Energy efficient refurbishment
Retirement provisions by
Owning a house (no costs for rent)
„Wohnriester/Eigenheimrente“ – Bauspar-contracts
with governmental incentives especially for private
pension provisons
Additional income from rent
Bildungssparen – Using the Bauspar-contract to finance academic studies
(in Austria only)
Market opportunities
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However, the Bauspar-regulations limit the usage of Bauspar-
contracts to certain purposes usually related to housing (e.g.
Bauspar-loans can’t be used to purchase a car or for travelling)
Jens Kuderer, LL.M. // Stuttgart, May 8th 2014 Arbeitsgemeinschaft Baden-Württembergischer Bausparkassen
1
7
15
21
23
25
30
36
37
42
55
0 10 20 30 40 50 60
Other forms of saving
Securities
Stocks
Investment funds
Riester retirement plans
Real Estate
Temporary investments
Life insurances
Bauspar contracts
Savings on giro accounts
Bank deposits (longtime savings)
Funds of German citizens 2013
Bauspar-contracts belong to the most popular financial investments
Quelle: Prof. Dr. Christian Klein, University of Kassel
tns Infratest; Verband der privaten Bausparkassen
Jens Kuderer, LL.M. // Stuttgart, May 8th 2014 Arbeitsgemeinschaft Baden-Württembergischer Bausparkassen
Realkreditinstitute
(mortgage banks)
3 %
Bauspar-institutions are number two in house financing
Source:Verband der privaten Bausparkassen;
Other associatons; Prof. Mechthild Schrooten, University of Bremen
Sparkassen
(public saving banks)
34 %
Bausparkassen
(Bauspar-institutions)
23 %
Kreditbanken
(commercial banks)
18 %
Genossenschaftsbanken
(cooperative banks)
17 %
4 %
1 %
Landesbanken
(state banks)
Lebensversicherungen
(life insurance companies)
Marketshare for house-financing 2012
Jens Kuderer, LL.M. // Stuttgart, May 8th 2014 Arbeitsgemeinschaft Baden-Württembergischer Bausparkassen
One can‘t ecpect low risk and high returns simultaneously
Convention:
The higher the return,
the higher the risk
respectively
The lower the risk,
the lower the return
1. Loan and Bauspar-contract
2. Real-estate-credit
3. Loan and stocks
μ
(chance/return)
σ
(risk)
1
2
3
Source: Prof. Dr. Christian Klein,
University of Kassel
Jens Kuderer, LL.M. // Stuttgart, May 8th 2014 Arbeitsgemeinschaft Baden-Württembergischer Bausparkassen
Any questions?
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