Buying a house at 40+, is that feasible?

2020-05-09 23:06:51

A possible pragmatic approach would be: (Please excuse my following "insensitivity")

Buy the house now, sell the apartment. Mother moves in. And in 20 years she retires, the mother is already dead by then (sorry)
She then sells the whole thing and moves into an age-appropriate rental apartment
Then you distribute the money (700K - 1 million?) over 20 years. Deduct rent each time,
Spend the rest in monthly installments on the nice things in life.

If then more "remaining lifetime" than money is left, she spends it
in a senior or nursing home

P.S. I will be 53 this year, construction starts this year, at the latest next year

2020-05-24 21:27:06

+ Condominium: approx. €400,000 + Savings: €30,000 Assumption: 85% secured = €370,000 assets

Investment: €700,000.

Less incidental purchase costs: approx. 45% secured.

This makes it possible to finance a property in any city in Germany. (Apartment as security + rental yield)

My question now is: is it still feasible at our age to take such a step? We only have "just" about 20 years left to repay the loan.

Financing is also possible beyond 70. Certainly, the interest rates increase somewhat because of this (e.g. 0.65% instead of 0.5% effective interest for a 10-year fixed term). But on the whole, financing is possible!

Note: The reason for this is the official mortality tables. Statistically, you still have a long life ahead of you.

Since we are bound both professionally and privately to the most expensive city in Germany, a suitable property will cost around €700,000.

Alternatively, moving to an affordable suburb. Especially the surrounding areas are growing around the metropolises. As digitization increases, it may be better to choose a house with a larger garden rather than a house with a short commute.

20 years is a long time and digitization will change a lot.

PS: For questions, feel free to PM me. It is my profession to answer such questions. For real interest rates, concrete data is necessary.

2020-05-24 21:36:12

With this, a property can be financed in any city in Germany. (Apartment as collateral + rental yield)

Financing is also possible beyond the age of 70. Certainly, the interest rates increase slightly because of this (e.g. 0.65% instead of 0.5% effective interest for a 10-year fixed rate). But overall, financing is possible!

Note: The reason for this is the official mortality tables. Statistically, you still have a long life ahead of you.

Alternatively, move to an inexpensive suburb. The outskirts are also growing around the metropolitan areas. As digitization increases, it may be better to opt for a house with a larger garden rather than a house with a short commute.

20 years is a long time and digitization will change a lot more.

PS: If you have questions, feel free to PM me. It is my profession to answer such questions. For real interest rates, concrete data is necessary.

Watch out! First post, just registered today and then such an offer in such a thread.
I smell something fishy...

2020-05-24 23:04:03

I smell mustiness...

I have contacted the forum operator myself. Thanks for the hint. PS: I should have chosen a different username, then advertising would even be possible. So no mustiness, just a formal error here in the forum.

2020-07-08 12:59:20

Hello everyone,

thank you very much for the numerous responses.

We are still looking for a suitable property and I have a question for the financing experts (and of course for everyone else who is knowledgeable).

Keyword: interim financing.

Assuming we find a house that is still being built, the respective construction phases have to be paid. We haven’t really got any equity yet, as we are still living in our condominium. How is this best financed? I understand that you can get interim financing from the bank, but not for the full purchase price of the house, only for the expected equity, right? But you can only sell the self-used apartment once the new one is finished....

Sorry for the stupid question, but I really don’t get it....

Thanks.

Best regards

2020-07-08 13:22:15

But you can only sell the self-used apartment once the new one is finished.....

That is practically all a matter of negotiation... My brother was interested in a house, the sellers wanted to sell now, still live there for a certain time (about 1.5 years), find and buy something new during that time and pay rent in the meantime. But the purchase price should be paid now. If the apartment is desirable enough... you might also find a buyer willing to agree to such a deal. Experts should rather comment on the procedure for bridging finance...

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Buying a house at 40+, is that feasible?

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