RomeoZwo
2020-03-31 20:45:44
- #1
You take out a loan on your terraced mid-terrace house, depending on the conditions 50-90%. The money obtained from this you use as equity for your new single-family house. Last autumn I took out a loan at Deutsche Bank for a rental property condominium that I had already purchased with equity. At that time there was a 90% financing at ~0.6% for a 15-year term. The financial advisor said back then they even had better conditions for rental properties. The same advisor then also offered me a 10-year fixed deposit for 1%. Let's say you get 75% of €300K for the terraced mid-terrace house, that's €225K. If the interest costs were 1%, you could deduct €2,250 per year from taxes, or the tax on your rental income of ~€10K would be reduced by this amount. From this perspective, it would also be worthwhile to keep the financing for the rental property running as long as possible, repay little, and possibly accept slightly higher interest rates. The new single-family house could then be paid off faster.how do you mean that? Even if I finance the new build with it? Because the terraced mid-terrace house is already paid off...