jens.knoedel
2024-02-07 21:39:25
- #1
No.
It’s about deducted costs: if deducted furniture is only partially taken into account, you should still have that on your checking account.
Example: €50,000 pulled out (kitchen, awning, fixtures), only 50% counted (kitchen, awning), then in NW e.g. with 6.5% real estate transfer tax
… calculate, calculate… €1,625. Anyone sweating blood and water or needing to get a loan on top of that has overextended themselves. Period.
I don’t understand partially. Purchase price house all in €500k. In the purchase contract it is officially stated €450k for the house and €50k for fixtures. Then you save real estate transfer tax on €50k. So 6.5% = €3,250. Nothing is calculated partially there.
From this perspective, the house has a market value of €450k (see purchase contract). To make it easier to calculate, let’s say a loan value of €400k (instead of €450k, if the fixtures are not separately stated to avoid taxes).
€350k loan = 88% loan-to-value ratio in the tax saving model
€350k loan = 78% loan-to-value ratio without the tax saving model
Interest difference due to exceeding the 80% limit = surcharge 0.15% = additional interest expense over 10 years fixed interest approx. €5,000
==> the tax saving model backfires
With bigger gambles and more expensive houses, that sometimes really hurts.
but to warn to stay realistic with all tax avoidance, otherwise you might get into trouble afterwards.
Yep - absolutely agree. I have seen houses before where it was about smaller six-figure amounts (of course with more expensive houses as well).