JanStol
2020-02-22 10:05:48
- #1
First of all, we would like to thank all of you for your feedback and interesting tips!
Our background for the "only" 1% repayment + possible special repayments is actually quite simple:
Better flexibility in potentially difficult life phases without begging the bank for a suspension of repayment and hoping.
You never know, reduced working hours, unplanned larger expenses, illness, etc.
Or/and as has already suggested:
1% repayment + "conservative" ETFs
instead of 2-3% initial repayment
Another interesting topic/tip:
I also find this tip from P-Kosmalla regarding capital procurement or equity through the forward loan of the condominium for the house very interesting as a replacement for our cash equity for better interest conditions and from tax advantages in renting out the condominium.
My questions regarding this?:
- Should I then split the forward loan into "remaining debt" and "additional loan"?
- How much could I get from the "additional loan"? Or does it depend heavily on the banks?
- Does the bank have no problem paying out the additional loan as capital procurement before the 10 years or before the bank is registered in the land registry for the forward loan on the condominium? Is the forward loan contract sufficient?
- I probably cannot deduct the interest costs for the "additional loan" of the condominium if I rent it out, right?
- But what about the "additional loan" of the condominium for a renovation of the condominium? Am I allowed to deduct the interest for tax purposes then? To what extent do I have to prove the renovation costs to the tax office?
Our background for the "only" 1% repayment + possible special repayments is actually quite simple:
Better flexibility in potentially difficult life phases without begging the bank for a suspension of repayment and hoping.
You never know, reduced working hours, unplanned larger expenses, illness, etc.
Or/and as has already suggested:
1% repayment + "conservative" ETFs
instead of 2-3% initial repayment
Another interesting topic/tip:
you have to look at everything as a "whole":
optimal if you want to rent out the condominium:
- you already do forward + already access part of it, i.e. you immediately take out another loan as capital procurement!
- you then take this loan as capital procurement on the condominium as equity for the house!
possibly you then come to 80% financing, depending on the region currently 20 years at 0.69% possible (often however with 2% or more repayment)
since interest on a own home (owner-occupied property) is not tax deductible, you should make a deal = very good interest rates, preferably with 1% repayment + special repayment!
for rented property the interest can be higher because you can offset it against rental income for tax purposes...
so as I said, negotiate with 2-3 banks and get a complete package where the tax burden on rental income is also taken into account (so involve a tax advisor!).
I also find this tip from P-Kosmalla regarding capital procurement or equity through the forward loan of the condominium for the house very interesting as a replacement for our cash equity for better interest conditions and from tax advantages in renting out the condominium.
My questions regarding this?:
- you already do forward + already access part of it, i.e. you immediately take out another loan as capital procurement!
- you then take this loan as capital procurement on the condominium as equity for the house!
- Should I then split the forward loan into "remaining debt" and "additional loan"?
- How much could I get from the "additional loan"? Or does it depend heavily on the banks?
- Does the bank have no problem paying out the additional loan as capital procurement before the 10 years or before the bank is registered in the land registry for the forward loan on the condominium? Is the forward loan contract sufficient?
- I probably cannot deduct the interest costs for the "additional loan" of the condominium if I rent it out, right?
- But what about the "additional loan" of the condominium for a renovation of the condominium? Am I allowed to deduct the interest for tax purposes then? To what extent do I have to prove the renovation costs to the tax office?