Rooms influence creativity and productivity. Work as an artist in an interior where you can live and realize yourself creatively, not only benefits your psyche, but also your work.
The problem: In many cases, artists do not receive funding for projects. Because they usually act as freelancers and do not record regular income. The purchase of your own studios and Co. is therefore often denied. Estonishing artists are prevented from growing and expanding their business.
In order to strengthen the field of art (especially the competitiveness of companies) and create more jobs, the Federal Government founded the Cultural and Creative Industry initiative . On the other hand, she launched the Federation of Competence Center for Cultural Creative Industry .
In this article we explain how you as an artist receive a loan for a house and what you should pay attention to when borrowing.
Live out creatively: Rooms for artists finance Image by Ana Krach on Pixabay
House financing for artists: this should be observed
Creative minds need spaceto let your thoughts run free. It is difficult to paint painters in a cramped apartment in the heart of a busy city center. Sculptors need enough space to create their works. And potter must find rooms in which you can set up navices, store materials and implement their projects.
Since you as a solo self-employed or freelancer do not have a fixed income, you should choose the loan for your property with a studio. Don't choose the first best offer. Because banks and credit institutions already raise more interest, since the risk of a freelancer is higher than with an employee or an official.
Before you choose a loan, first use the financing calculator for the house . In this way you can determine how much budget is available to you and how expensive your new property can be. When calculating, also pay attention to the additional costs. Because a house triggers running costs that are to be paid regularly. Costs for the notary and the like should also be taken into account.
If you belong to the cultural and creative industries , you can choose from funding. This applies, for example, to artists from the music industry, the art market, the architecture market, the advertising and pressing market and the book market. According to the definition, software and game developers are also belonging here. The exception is everyone who is supported by public funds.
Buying house: Do I need a loan?
Most homeowners rely on financing and a small proportion of savings. Overall, the Germans are considered to be enthusiastic . In 2020 alone, 235.20 billion euros were accepted in the form of consumer loans. The construction financing occupies some of these.
Before each recording of a loan, it is important to check whether a loan is the best option. In many cases, house financing can prove to be helpful. There are many providers to choose from online that attract at low costs. But be careful: the devil is often in detail. Particularly affordable loans are usually accompanied by additional costs that are not visible at first glance.
However, you should not only contact your house bank. A comparison is worthwhile in any case . It is important that you invest enough time in research and compare several offers. The more precisely you will proceed here, the higher the chance of an inexpensive loan that can be paid off quickly.
take advantage of offers from the German Credit Agency for Reconstruction, KfW This offers special loans for freelancers from the art scene . This is to make it easier to start the career.
Who can record a house loan?
To have a house financed, you have to be of legal age and fully legal. You must also be able to prove an official place of residence in Germany and use a checking account at a Deutsche Bank.
The lender also requires evidence of your income and credit rating. So he assesses whether they are capable of credit. Based on the income situation, the bank or the credit institution will then determine the individual interest. The higher the risk for the bank, the more expensive the loan for the house.
A tip: Find out whether the bank has a certain loan for artists such as freelancers .
How do I find the right credit provider?
There is no general answer to the question of how artists find a loan provider who has the best conditions. The basis is an extensive research in which you compare different providers from the Internet with offers from your house bank and the KfW. In this way you get an overview of possible loans and the expected costs.
The monthly contribution should be so high that you can pay off the loan quickly. Because the lower the term, the faster they are debt free again. At the same time, the contributions should be so low that they do not have to lower their standard of living. Financial buffers should also be planned. So you may have to bear unpredictable costs - for example in the course of an exchange of the kilns.
Always question the trustworthiness of the lenders. Because black sheep on the market often lure with particularly cheap offers and suspicious low interest rates. Anyone who sits up is annoyed by high payments in the long term. Make sure that the conditions should always be contractually determined. Also check any contractual penalty.
How many artists use loans?
A monitoring of the cultural and creative industries from 2019 shows that more and more artists are venturing and taking a loan. A total of 1.2 million employees from the art industry used financing in 2019, including 258,790 freelancers and entrepreneurs from the scene.
The Federal Government's plan and the cultural and creative industries that it have established bears fruits and artists, the start of their career and financing during their professional years is facilitated.
Infographic: financing in the cultural and creative industries
The conclusion - even freelance artists can take loans
In the past, it was almost impossible to get a loan from the art scene as a freelancer. Because freelancers such as sculptures sculptures do not have a fixed income and the lender therefore bears a high risk.
Today, funding from the KfW and measures by the cultural and creative industries, which was founded by the Federal Government, lead to more and more artists can use loans. In this way, they succeed in starting their career and also in later professional life there are new opportunities with a loan.
When taking a loan as an artist, you should consider some important points. Always compare several offers and read the small print. Look of using tempting offers with unrealistically low interest rates. These often hide dubious providers behind them and the loans become a cost trap.
Owner and managing director of Kunstplaza. Publicist, editor and passionate blogger in the field of art, design and creativity since 2011. Successful conclusion in web design as part of a university degree (2008). Further development of creativity techniques through courses in free drawing, expression painting and theatre/acting. Profound knowledge of the art market through many years of journalistic research and numerous collaborations with actors/institutions from art and culture.
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