Hello everyone,
During the construction phase, we found out that a plot of land very close to our current residence is privately v
Is there a procedure that would enable this construct?
- Selling the house and only handing it over to the buyer after the completion of the new property would probably be difficult – which buyer would do that?
- Bridge financing? What do banks think about that? Somehow nonsense
- Renting out the current house? The bank would probably not really count that as income...
Almost everyone who sells their apartment/house for a new build does it this way. With the current seller's market, it definitely works.
You can finance with a variable interest rate, which I did because of a land sale that is not yet finalized.
A neighbor who sold his apartment to build did the same. Afterwards, it was replaced by the sales proceeds + final financing.
Renting out is also possible; in our case, rental income is also included in the financing.
However, I can't tell you how it looks if the property to be rented out is not free of encumbrances.
In that case, a large part of the rental income would surely go towards the old financing.
The problem I also see with such a construct is that it will be relatively difficult to rent out such an expensive property long term. I think I wouldn’t want to rent out such a house for much less than €2000 cold rent per month.
Depending on the region, you can count on one hand the tenants willing to pay such an amount.
I can well understand the fun of building. I had also considered building a semi-detached house on our inherited plot to rent it out afterwards. But due to the distance of 500 km, we finally decided to sell.