Building a home - The beginning is always difficult - How does it start?

  • Erstellt am 2018-09-02 17:59:22

thehax

2018-09-03 19:49:11
  • #1
No, we are not. However, we would of course want to arrange the inheritance of the shared house so that we are the sole heirs here. Sort of in return for the care to be provided in case of emergency.
 

Alex85

2018-09-03 20:13:43
  • #2


I still disagree. First determine the financial framework to see if the project is even realistic. You can't live comfortably on plots alone.



I deliberately took €1800 because it's standard and in SH.



There is only one scenario in which Grandpa is helpful: if he gives you something, unconditionally.
Often people come here thinking the situation improves if mother-in-law, grandpa, or someone else moves in because they have cash. Usually, it turns out that the older generation (and the builder) have no real sense of today’s construction costs. Then €100K is promised, but in return, a 100 sqm granny flat must be built. Yeah right, sure. Even if it were only 50 sqm, that would at best be a break-even game for the builder.
And rental income is still taxed and not a guaranteed solid business even with Grandpa.

Let Grandpa build the house and you rent from him, do rent-to-own, or simply inherit the house (if sole heir) :)

But however you look at it, potential co-heirs will want to have a say.



As said, if he gives you money, that’s good.
Otherwise, he can join the financing as a guarantor with his income. But think about whether you, as an adult, really like that idea. Also, it doesn’t improve your loan conditions and doesn’t help with repayment. That can only be important if the bank thinks the monthly installment doesn’t fit your income.
 

Caspar2020

2018-09-03 21:25:48
  • #3


So if no substantial equity capital comes out of it (100-200K), it’s a zero-sum game; unless you still “pay on top”.

The reason is simple; square meter still costs 1800. A nice granny flat should have 50-60 sqm. That means 90-106K gone; possibly even more since the plot has to be bigger.

The only advantage would be better conditions at the bank; due to better loan-to-value ratio.

But really more / or being able to better afford the project doesn’t come out of it.

If not much equity can be contributed (i.e. less than 100K), I wouldn’t bother with the hassle at all.
 

Nordlys

2018-09-03 21:53:26
  • #4
I also consider grandpa to be a crutch. And since I am a grandpa myself, I would always advise against grandpa doing that with you. §1 everyone has their own. Old and young should gladly meet, but not sit too closely together. A high hedge between us and you does no harm.
 

Kekse

2018-09-03 22:13:31
  • #5
Totally stupid idea. Imagine grandpa has (in top shape) a traffic accident or some other sudden event that doesn't require care. Then not only do you have a huge burden with the granny flat, but also an inheritance dispute on your hands.
 

HausbauTiNa

2018-09-03 23:41:22
  • #6
To put it bluntly: From a bank's perspective, grandpa at the end of his 50s no longer represents security. Additionally, an inheritance is not expected because it is speculative. Grandpa could also be in need of care to the extent that he can no longer be cared for at home. Then he has to use up his assets for the care.
 

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