Knallkörper
2018-04-23 11:55:27
- #1
Hello everyone,
I would like to put the following thought experiment up for discussion. I have no knowledge of legal and tax pitfalls in this context and would appreciate some feedback on this.
- There are two parties A and B. Both parties are married couples, in their mid to late 30s, each with two children.
- A and B each built a single-family home for their own use two to three years ago.
- New building plots have been developed in the community, with 150 applicants for 20 plots. Party A has the opportunity to purchase one of the plots (500 sqm, 120,000 euros).
- A and B are considering buying and financing the plot together and building a semi-detached house with basic amenities on it. (Rental bunker ;)
- Both semi-detached halves are to be rented out to refinance themselves.
- The living area is approximately 2 x 120 sqm.
- The cold rents are currently customary at 10 euros per sqm.
- Construction costs for the semi-detached house: 340,000 euros (ready to move in without kitchen) / ancillary construction costs 40,000 euros.
- Total financing requirement is 500,000 euros.
- Both parties do not want to contribute equity, except for incidental purchase costs.
- The annuity should be 5%.
- Both parties have a minimum monthly income of 7,000 euros each (from non-self-employed work).
- It is assumed that the property will increase in value by 5% in the first year, then 1% annually.
The following questions could be discussed:
- Will a bank approve such financing for each party, and is the entry in the land register for the semi-detached house sufficient for the bank?
- Can both parties be listed as owners in the land register? For example, can party A sell their half later and party C take their place?
- Is there anything crucial to consider when purchasing the plot by two parties? Does the plot have to be divided? How does the whole process work in the land register?
- What happens if A or B goes bankrupt?
- How large is the potential to save taxes on the loan interest?
- How can an approximate return be calculated taking tax effects into account?
I would appreciate active participation.
I would like to put the following thought experiment up for discussion. I have no knowledge of legal and tax pitfalls in this context and would appreciate some feedback on this.
- There are two parties A and B. Both parties are married couples, in their mid to late 30s, each with two children.
- A and B each built a single-family home for their own use two to three years ago.
- New building plots have been developed in the community, with 150 applicants for 20 plots. Party A has the opportunity to purchase one of the plots (500 sqm, 120,000 euros).
- A and B are considering buying and financing the plot together and building a semi-detached house with basic amenities on it. (Rental bunker ;)
- Both semi-detached halves are to be rented out to refinance themselves.
- The living area is approximately 2 x 120 sqm.
- The cold rents are currently customary at 10 euros per sqm.
- Construction costs for the semi-detached house: 340,000 euros (ready to move in without kitchen) / ancillary construction costs 40,000 euros.
- Total financing requirement is 500,000 euros.
- Both parties do not want to contribute equity, except for incidental purchase costs.
- The annuity should be 5%.
- Both parties have a minimum monthly income of 7,000 euros each (from non-self-employed work).
- It is assumed that the property will increase in value by 5% in the first year, then 1% annually.
The following questions could be discussed:
- Will a bank approve such financing for each party, and is the entry in the land register for the semi-detached house sufficient for the bank?
- Can both parties be listed as owners in the land register? For example, can party A sell their half later and party C take their place?
- Is there anything crucial to consider when purchasing the plot by two parties? Does the plot have to be divided? How does the whole process work in the land register?
- What happens if A or B goes bankrupt?
- How large is the potential to save taxes on the loan interest?
- How can an approximate return be calculated taking tax effects into account?
I would appreciate active participation.