ChrisWetter
2018-07-28 20:30:48
- #1
Hello everyone!
I am currently troubled by the following problem.
My father would like to sell his parental home to one of his children. I am considering it, but I don’t live nearby and would only use it as a rental property. The house is in a normal basic condition and was valued unrenovated by the bank at 280,000 euros, and recently renovated (heating, windows, floors). So basically, only increased in value.
A rental would pessimistically bring in around 1,100 euros cold, with a margin up to ~1,700 euros.
If I buy the house for about 160,000–200,000 euros, I would get it well below value, but I still would not like to invest equity and would thus burden the house with that amount (+- occasional renovations).
The burning question for me is:
When we apply for a loan for a construction project for our own home, will this credit be an obstacle for the new loan approval? How do banks calculate that? For a new house I simply throw out the values, 450,000 euros total expenses, 100,000 equity.
I just wonder if the bank could see this double burden as a reason not to support our own construction project with a loan.
Thank you in advance for your expert knowledge and best regards!
I am currently troubled by the following problem.
My father would like to sell his parental home to one of his children. I am considering it, but I don’t live nearby and would only use it as a rental property. The house is in a normal basic condition and was valued unrenovated by the bank at 280,000 euros, and recently renovated (heating, windows, floors). So basically, only increased in value.
A rental would pessimistically bring in around 1,100 euros cold, with a margin up to ~1,700 euros.
If I buy the house for about 160,000–200,000 euros, I would get it well below value, but I still would not like to invest equity and would thus burden the house with that amount (+- occasional renovations).
The burning question for me is:
When we apply for a loan for a construction project for our own home, will this credit be an obstacle for the new loan approval? How do banks calculate that? For a new house I simply throw out the values, 450,000 euros total expenses, 100,000 equity.
I just wonder if the bank could see this double burden as a reason not to support our own construction project with a loan.
Thank you in advance for your expert knowledge and best regards!