Buying an apartment despite planning to buy a house in 3-4 years?

2020-06-16 08:01:01

In addition, the prices for land and house construction are not going down. On the contrary, they are rising significantly. What you then save additionally in 3 years could be less than the price development.

420,000 € for the second project? The question is how expensive the plots are/will be? If the land alone costs over 200,000 €, you will only be able to carry out the project with a lot of personal contribution.

2020-06-16 11:08:53

We did the same.

09/2017 purchased a condominium for 213 TEUR. Currently, we are still living in it ourselves. When we move into the single-family house, the condominium will then be rented out.

At the moment, we are still repaying at 3.68% => installment 810 EUR. As a result, from the start of repayment until the earliest possible move-in date (11/2021), we have repaid 23.8 TEUR. Alternatively, the amount would have gone to a landlord... Here, in case of doubt, equity replacement (free land charge portions).

From third-party rental onwards, the repayment will then be reduced to initially 1.5% p.a. As a result, after all costs (taxes from V+V; maintenance reserve + non-allocable ancillary costs; new loan installment), through the income from V+V (conservatively calculated), we increase our household surplus by 200 EUR p.m.

In your case, the household surplus will be much higher, as you are using significantly more equity....

2020-06-16 12:26:43

Q

We did it that way as well.

09/2017 purchased a condominium for 213,000 EUR. Currently, we still live in it ourselves. When moving into the single-family house, the condo will then be rented out.

At the moment, we are still repaying with 3.68% => installment 810 EUR. As a result, from the start of repayment until the earliest possible move-in date (11/2021), we have repaid 23,800 EUR. Alternatively, the amount would have gone to a landlord... Here, in case of doubt, equity replacement (free mortgage portions).

From external rental onwards, the repayment will then be reduced to initially 1.5% p.a. This increases our household surplus by 200 EUR per month after all costs (taxes from rental income; maintenance reserve + non-allocable ancillary costs; new loan installment) through the rental income (calculated conservatively).

In your case, the household surplus will be much higher, as you are using significantly more equity....

Are the incidental purchase costs missing in the calculation, which you would not have paid when renting?

2020-06-16 12:44:34

Aren't the incidental purchase costs missing in the calculation, which you wouldn't have paid with rent?

Basically, you are right. That was then 16.8 thousand euros (paid from equity). Ultimately, however, of minor importance to us, since we basically made the purchase of the condominium as an investment in fixed assets. Nevertheless, a financial advantage arises compared to renting in two respects

a) Repayment minus incidental purchase costs: +7 thousand euros
b) Increase in household surplus +200 euros

In addition, at the start of retirement a debt-free condominium is then available, whose monthly income during the retirement phase is adjusted to inflation.

In my personal opinion, besides a self-used property, there should always also be a rented property as part of a fixed asset concept. However, ultimately, everyone has to decide that for themselves.

2020-06-16 12:53:49

Well, then you should also include the maintenance costs etc. that come with a condominium, especially when renting it out. For the apartment to be suitable as an investment property, it must be properly maintained, and that also costs money.

But this is certainly a very individual calculation that must always be considered on a case-by-case basis. It is not without reason that in more desirable locations, apartments are sometimes bought even though they are, mathematically speaking, rather poor in terms of returns.

But you should definitely consider and include ALL items in the whole matter!

2020-06-16 12:54:51

I see it differently personally. The increase in the household surplus can also be achieved through a cheaper rental apartment. So for now, it’s "only" the 7000€. Whether the rental apartment really pays off in the end is definitely not certain either. With a single property, this can quickly be reversed by missing rent payments, rental scammers, politics, etc. It may certainly be worthwhile in your individual case. I think it is wrong to generalize that.

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Buying an apartment despite planning to buy a house in 3-4 years?

Ybias78

DaSch17

Joedreck

DaSch17

cschiko

Joedreck