Curious financing idea

You are right, then it is 430k€. Still remains 105%. As far as I understand, you get the 410k with interest on 100% loan-to-value. The remaining 20k€ is then processed through a normal consumer loan. With an above-average salary, such a construct is not problematic, as the bank’s uncertainty is offset by a high repayment rate, so that the amount over >100% quickly decreases. That is simply not the case with you.

What rate or repayment in % do you have in mind?

Does that then go through 2 banks? Or only through the internet? I’ve never heard of anything like that. Job-wise, for both of us, the salary is going up in the near future, so special repayments would still be of interest to us. In our original bank conversation, which wasn’t really constructive, we had a repayment of about 2% with a payment of 1300 €.

However, there is a catch - free housing for relatives does not exist for tax purposes. So if the parents live without paying rent, you would still have to tax the imputed rental income. So no income, but on top of that an additional tax burden.

Please explain that.
I can’t quite follow.

My mother and her boyfriend have a two-family house. My wife and I lived temporarily in one apartment for about a year. We did not pay rent. What exactly would my mother and her boyfriend have had to declare for tax purposes? I don’t quite understand.

A different idea for the thread starter:
Why not offset the 50,000 against rent-free living?
You could simply rent to your parents and include the rental income (less taxes) as additional income. Then you could pay a higher installment.
That would be a clean solution.

Of course, whether the parents want to move in with you, and whether you want that at all, is another matter.

However, there is a catch - there is no such thing as a free apartment for relatives with taxes. So if the parents live rent-free, you would still have to tax the imputed rental income. So no income, but an additional tax burden.

Can you somehow support the statement with sources? I only know the rule that if relatives live for <60% of the comparative rent, the depreciation possibilities as an investment property no longer apply. So 2% of the building value per year as well as administrative, maintenance, and renovation costs are no longer deductible.

Couldn't you buy the house with a bank loan and handle the renovations through the personal loan with [Schwiegervater]? Then you wouldn't have to submit all the invoices. You would still have 110% financing, but for a smaller amount, which the banks might be more willing to accept, and you wouldn't have to hide anything.

Thank you all for the input! I will review and think everything over again with my partner tonight. The house would really be our dream. Maybe it can still be realized after all.

Does it then run through 2 banks? or only over the internet? I have never heard of something like that. In terms of jobs, both of us will have a salary increase in the near future. therefore, special repayments would still be of interest to us. during the original bank meeting, which was not really constructive, we had a repayment of about 2% with a repayment of €1300.

It actually runs through 2 banks. With a reasonable term (greater than 20 years) I neither believe in the €1300 nor in the special repayment. Especially not with children! The salary is too low for that.