Hello everyone,
first of all, thank you very much for the many comments and suggestions.
I really appreciate that and I especially welcome critical questions.
My focus will now be as follows:
- Favorite is the inherited property from the family
- It needs to be clarified whether all heirs agree to the takeover of the property by us
- Furthermore, it must be clarified which tax considerations are sensible (gift vs. inheritance?)
- It needs to be found out what the current value of the property is and how expensive a renovation would be or whether a demolition might even be an option
Thank you all so far. I would also like to try to clarify the situation a little:
There are big ranges in there.
When does your wife want to work again?
How much will she potentially earn then?
It’s not so much about the lack of equity with you, but about the loss of your wife’s salary.
Depending on success in family planning, it may of course be that my wife only works again sooner or later.
Currently, due to uncertainty, I would completely exclude her income.
We would probably have an additional buffer of €1000-1500 net per month here that has not been considered so far.
As I said, I don’t want to consider it at first because it’s simply not plannable.
After completing family planning (and possibly in the meantime), she would probably start part-time at 20 hours per week.
I don’t know what the Hamburg commuter belt costs, but you urgently need to specify this figure, if necessary with very simple rules of thumb:
- Official land value * plot size
- €2000/m² living space (divided into residual value of old property + renovation)
- Surcharge for commuter belt, cellar, garage or others
Just ask your bank for the amount. Get non-binding advice on how much they would give you at most.
When buying the neighboring plot, €15,000 and more would go just for ancillary purchase costs. Thus, 100% financing. I don’t know how well you know the neighbors, but as soon as money is involved, they will want to maximize the purchase price as well.
With your own family, the real estate transfer tax does not apply, but how much you get as a gift and how much you have to pay out to everyone else is still unclear. Above all, you can discuss the matter much more easily in advance with all potential heirs. Here, too, it must eventually be said what the whole thing is worth, who inherited which shares, how much money you pay out. This can be considerably cheaper than the "pre-emptive right" on the neighboring property at the highest bid. Regardless, if everyone agrees, this is the simplest and perhaps cheaper way, but if the community of heirs is too large and quarrelsome, it will also be expensive to impossible.
As I said, discuss it with your house bank or a financing broker. I think it should work financially.
Thanks for the hint. Currently, the potential inherited property is probably our favorite.
Unfortunately, the topic is not discussed very openly in the family. However, I will try to bring up the topic openly again to create clear conditions.
Purely according to inheritance law, my wife is entitled to 25% of the property (grandparents have two children, my wife has one brother).
Of course, it must be clarified whether the parents pass on the inheritance directly. I believe this should definitely be reviewed for tax reasons.
Please also think of future daycare fees.
And €60 for all insurances? – liability, disability, legal protection, household contents, accident? Just to name important ones.
Otherwise, I see €500-650k as unproblematic.
Regards
Thanks for the hint about daycare fees. They are indeed not included yet.
For insurance, all necessary coverage we consider is included. Admittedly, we are not overinsured. But this should not be the subject of the discussion here.
I find two figures somewhat questionable:
1. Groceries €400 (for 3 people)
2. Then shopping, vacation, leisure €1000
Could you perhaps elaborate on that?
I can’t find anything strange about it. We cook ourselves, cost-conscious and healthy.
Recently, many purchases have been made (child + children’s room).
What is also missing: retirement provision? Somehow your expenses don’t add up for me.
What would you advise regarding retirement provision?
I would have thought that bricks and mortar investments are the best retirement provision.
I would only invest in further retirement provisions if there is money left over or the house has been paid off.
Otherwise, you would practically "invest in stocks on credit".
Those are crazy salaries here.
Now it is official: as a couple with €4100 net monthly (both full time), we are poor people in the northeastern Hamburg commuter belt.
And if you don’t inherit at least €1 million under the poverty line. I also wonder what kind of question this is. Help, I get a property as a gift and earn only €9k net per month, what should I do?
I’m not sure what to make of this comment and why I should justify my salary.
As described, we receive 25% of the property and for my salary I have worked hard.
I am aware that I am not a low earner and certainly privileged with my job and the company I work for.
Still, I cannot simply afford a house in Hamburg.
I also find everything way too vague.
An uncertainty in income of €2.5k – that makes a world of difference for such a project.
What would existing properties possibly cost? In the family it can be discussed much more easily than with neighbors. It’s not a great topic either: "Hey, when your mother is no longer here, we would like to buy her house from you, what do you want for it?"
Does it mean for your grandparents’ house that your wife’s parents have 25% share because there are four children? Or would your wife have to share the 50% that her parents inherit with a sibling? The more people involved, the more difficult it becomes. Especially if other heirs/grandchildren are interested in taking over the house, it can lead to a nasty conflict in the family.
Otherwise: with your €5k net you can think of about €500k credit, if the wife is expected to earn, even more. If indeed four children are planned, it will be very tight again – and realistically, the wife will hardly contribute to the family income in the long run. In addition, it is now important to save as much as possible – in three years a nice amount can accumulate. Good is that, in any case, no broker needs to be involved, which saves a lot on purchase ancillary costs.
And there should be as concrete numbers as possible: how much money do you have to put in to first buy the existing objects or to pay out the other heirs? Renovation/remodeling comes on top.
What do you mean by the uncertainty in income of €2.5k?
The €5k net per month is absolutely secure in the foreseeable future.
Regarding the other questions, please see the answer above:
"Thanks for the hint. Currently, the potential inherited property is probably our favorite.
Unfortunately, the topic is not discussed very openly in the family. However, I will try to bring up the topic openly again to create clear conditions.
Purely according to inheritance law, my wife is entitled to 25% of the property (grandparents have two children, my wife has one brother).
Of course, it must be clarified whether the parents pass on the inheritance directly. I believe this should definitely be reviewed for tax reasons."
Are you making the financing where you also have the property?
I would kindly ask you to conduct this conversation via PM or in a separate thread as it does not contribute to the topic here.