Bausparen is a savings plan popular in Germany and Austria that encourages individuals to save money for future home purchases or renovations. Participants deposit a fixed amount regularly into a savings account, which typically offers attractive interest rates. After a certain period, they become eligible for a low-interest loan to finance their housing projects. The system is often linked to building societies, which manage the savings and loans. Bausparen not only promotes saving but also provides financial security for those looking to invest in real estate, making it a valuable tool for homebuyers.