Having a look at the popular definitions dealing with the topic real-estate credit, one is confronted with a wide variety of different explanations. One obstacle while searching for a suitable definition of the German termRealkredit(real-estate credit) is the fact that this term is in Germany rather known under the nameHypothekendarlehen(mortgage loan). Though one also finds the word ‘Realkredit’ in the relevant literature as well as in numerous other sources of definitions, it is not known in the vernacular.
In Denmark the situation is completely different. Here, the termrealkreditbelongs to the mortgaging as the house to the property. Moreover, it is also known in the general language use including compound nouns such asrealkreditlån(real-estate loan) orrealkreditlov(real-estate credit act).
Whether one is more cotton on to the term ‘real-estate credit’ or ‘mortgage loan’ or even ‘hypothecary credit’ (in German:Hypothekarkredit)is entirely up to the reader, although we later see that there is a difference between these terms. For the sake of a better comprehension, the words ‘real-estate credit’, ‘credit on real estate’ and sometimes also ‘real-estate loan’ will be used in the further discussion with a few exceptions regarding extracts and quotations. As far as the explicit definition of the real-state credit is concerned, authors in both countries agree upon a more or less identical explanation. In Germany’s major reference book, the Brockhaus-encyclopaedia (1996, vol. 18, p. 109), one speaks about a“credit that is granted for the security of tangible assets (real estate)”.A slightly extended definition can be found on the internet platform of the Duden. Here, one describes the term as a“loan at which the debtor guarantees the repayment with real estate or other assets”.
Table of Contents
- 1. Placement of the Credit on Real Estate
- 1.1. General Disambiguation
- 1.2. The Term 'Realkredit' in Germany
- 1.3. The Term 'Realkredit' in Denmark
- 2. The Granting of Real-estate Loans
- 2.1. Real-estate Credit Institutions in Germany
- 2.2. Real-estate Credit Institutions in Denmark
- 3. Importance of the German and Danish Credit on Real Estate and its Advantages over other Forms of Financing
- 3.1. Alternatives in the Field of Construction Financing in Germany
- 3.2. Alternatives in the Field of Construction Financing in Denmark
- 3.3. Summary of the Importance of the German and Danish Real-estate Credit
- 4. The Real-estate Credit in Practice
- 4.1. General Considerations as to the German and Danish Construction Financing
- 4.2. Real-estate Credit Financing in Germany
- 4.3. Real-estate Credit Financing in Denmark
- 5. The Future of the Real-estate Credit as an important Instrument in the Field of Construction Financing
- 5.1. The Future of the Real-estate Credit in Germany
- 5.2. The Future of the Real-estate Credit in Denmark
Objectives and Key Themes
This paper aims to analyze the differences and similarities in real estate credit practices between Germany and Denmark. It examines the role of real estate credit institutions in both countries, their historical development, legal frameworks, and their overall importance within the national financial landscapes. The study also explores alternative financing options and considers the future prospects of real estate credit in both nations.
- Comparative analysis of real estate credit systems in Germany and Denmark
- Role and importance of real estate credit institutions
- Historical development and legal frameworks governing real estate credit
- Analysis of alternative construction financing methods
- Future trends and challenges facing real estate credit in both countries
Chapter Summaries
1. Placement of the Credit on Real Estate: This chapter clarifies the terminology surrounding "real estate credit," differentiating its meaning and application in Germany and Denmark. It establishes a common understanding of the term before delving into the specifics of each country's system. The chapter lays the foundation for subsequent comparisons by defining the scope of the analysis.
2. The Granting of Real-estate Loans: This chapter focuses on the institutions responsible for granting real estate loans in Germany and Denmark. It details the structure and function of these institutions, including their historical development and legal regulations. The chapter highlights the key differences in the organizational structures and regulatory environments between the two countries, setting the stage for a comparative analysis of lending practices.
3. Importance of the German and Danish Credit on Real Estate and its Advantages over other Forms of Financing: This chapter examines the significance of real estate credit in Germany and Denmark, comparing it to alternative financing methods available for construction projects in each country. It analyzes the advantages and disadvantages of real estate credit compared to other options, providing a comprehensive overview of the various financing choices available to borrowers. The chapter explores the competitive landscape of construction financing, emphasizing the unique position of real estate credit within each market.
4. The Real-estate Credit in Practice: This chapter delves into the practical application of real estate credit in Germany and Denmark. It examines the business environment, factors influencing the proportion of equity financing, and specific loan types prevalent in each country. The chapter contrasts the practical application of real estate credit between the two nations, revealing nuances not apparent in the theoretical discussion of the earlier chapters. It provides a detailed overview of real-world practices and experiences with real estate loans.
5. The Future of the Real-estate Credit as an important Instrument in the Field of Construction Financing: This chapter looks ahead at the future of real estate credit in Germany and Denmark, analyzing factors such as standardization, market saturation, and internationalization. It explores future trends and challenges for the real estate credit market in both countries, providing a forward-looking perspective on the sustainability and evolution of this crucial financing instrument. It considers factors that may impact the future role and importance of real estate credit.
Keywords
Real estate credit, mortgage loan, construction financing, Germany, Denmark, real estate credit institutions, Pfandbrief, mortgage bonds, comparative analysis, financial institutions, banking sector, legal framework, historical development, alternative financing, future trends.
Frequently Asked Questions: A Comparative Analysis of Real Estate Credit in Germany and Denmark
What is the main focus of this document?
This document provides a comprehensive overview and comparative analysis of real estate credit practices in Germany and Denmark. It examines the similarities and differences in the systems, focusing on the role of credit institutions, legal frameworks, alternative financing options, and future trends.
What topics are covered in the Table of Contents?
The Table of Contents covers five key areas: 1. Defining "real estate credit" in both countries; 2. The institutions that grant real estate loans; 3. The importance of real estate credit and its advantages over other financing; 4. The practical application of real estate credit in both countries; and 5. The future prospects of real estate credit in Germany and Denmark.
What are the main objectives and key themes of the analysis?
The main objective is to compare and contrast real estate credit systems in Germany and Denmark. Key themes include the role of real estate credit institutions, historical development and legal frameworks, alternative financing methods, and future trends and challenges.
What are the key findings summarized for each chapter?
Chapter 1 clarifies the terminology of "real estate credit" in both countries. Chapter 2 details the institutions granting loans in each nation. Chapter 3 compares the importance of real estate credit against other financing options. Chapter 4 analyzes the practical application of real estate credit in Germany and Denmark. Chapter 5 explores the future prospects of real estate credit in both countries.
What are the key terms and concepts discussed in this document?
Key terms include real estate credit, mortgage loan, construction financing, Pfandbrief, mortgage bonds, comparative analysis, financial institutions, banking sector, legal framework, historical development, alternative financing, and future trends. These terms are central to understanding the complexities of the German and Danish real estate credit markets.
What specific aspects of real estate credit are compared between Germany and Denmark?
The comparison encompasses the definition of "real estate credit," the institutions involved in lending, the relative importance of real estate credit compared to alternative financing, the practical application of loan processes, and the anticipated future trends and challenges within each country's market.
What types of alternative financing methods are considered?
While not explicitly listed, the document implies a discussion of alternative financing methods for construction projects in both Germany and Denmark, which are compared to the prevalence and importance of real estate credit within those markets.
How does the document address the future of real estate credit in Germany and Denmark?
The final chapter provides a forward-looking perspective on the future of real estate credit in both countries. It examines factors like standardization, market saturation, and internationalization that may influence the role and importance of real estate credit in the years to come.
- Arbeit zitieren
- Stephan Dannehl (Autor:in), 2004, The Credit on Real Estate - Local Value and Relevance for the Construction Financing in Germany and Denmark, München, GRIN Verlag, https://www.grin.com/document/48254
