MarkusWeb
2020-06-14 22:53:06
- #1
Hello everyone,
we are about to decide to buy our current rental apartment from our landlord. The purchase price would be €190,000 for 95m². We have been living here for almost 3 years and know the apartment and the area. The price would be slightly below the current local prices.
Equity is available (current value after the Corona crash €140,000). We currently plan to use €75,000 as equity and have a financing offer with 0.49% for €128,000 (9 years fixed interest), installment €700, which corresponds to our current cold rent.
We are married (both 30) and have two children (4 and 1). Another child is planned in 4-5 years. I am the sole earner with €4000, plus €408 child benefit and bonus payments of €5000 net annually (amount less certain in the current times, but at least partly).
We originally planned to build a single-family house or semi-detached house, but the risk currently seems too high and the prices in the new development area seem personally overheated to us. We would live in the apartment as a temporary solution for another 3-4 years, then rent it out as an investment and buy a single-family house/semi-detached house in the area. We hope that stock prices will recover somewhat and with our current savings rate of about €1000 per month we would have at least €90,000 again. Additionally, there would be a grant from the families of €40,000, so with €130,000 equity we could start the second project. Our personal limit would then be €420,000.
Now the question is whether anyone has dared a similar scenario and shares their experiences with us. How do banks react to a second real estate financing related to the income? Are we risking something or overlooking something in the decision?
Thank you very much for the feedback.
we are about to decide to buy our current rental apartment from our landlord. The purchase price would be €190,000 for 95m². We have been living here for almost 3 years and know the apartment and the area. The price would be slightly below the current local prices.
Equity is available (current value after the Corona crash €140,000). We currently plan to use €75,000 as equity and have a financing offer with 0.49% for €128,000 (9 years fixed interest), installment €700, which corresponds to our current cold rent.
We are married (both 30) and have two children (4 and 1). Another child is planned in 4-5 years. I am the sole earner with €4000, plus €408 child benefit and bonus payments of €5000 net annually (amount less certain in the current times, but at least partly).
We originally planned to build a single-family house or semi-detached house, but the risk currently seems too high and the prices in the new development area seem personally overheated to us. We would live in the apartment as a temporary solution for another 3-4 years, then rent it out as an investment and buy a single-family house/semi-detached house in the area. We hope that stock prices will recover somewhat and with our current savings rate of about €1000 per month we would have at least €90,000 again. Additionally, there would be a grant from the families of €40,000, so with €130,000 equity we could start the second project. Our personal limit would then be €420,000.
Now the question is whether anyone has dared a similar scenario and shares their experiences with us. How do banks react to a second real estate financing related to the income? Are we risking something or overlooking something in the decision?
Thank you very much for the feedback.