Financing an owner-occupied apartment for rental

Since the apartment is already a bargain, I would personally proceed as follows: 1. Buy the apartment with 80-90% financing 2. Rent it out for 10 years 3. Sell tax-free after 10 years

Due to depreciation, debt interest, and non-allocable costs, the profit should be limited or possibly result in a loss. Since the renovation will probably not amount to 15% of the acquisition costs, you can fully deduct these as advertising expenses in the year of purchase. That alone would almost cover 2 years of cold rent.

With a good tax advisor, the tax burden can be kept very low. Given the location, even with stagnating purchase prices, a very decent profit would still be possible with very limited absolute tax burden.

Best regards

Regarding the original question:
Check with Deutsche Bank. In Q4 2019, they offered me significantly better conditions for an investment property than Dr. Klein and others.
Condominium with a purchase price of 175k€ + additional costs, financing of 150k€ over 15 years full repayment for 0.59% (however, no special repayments etc., which makes sense given the low interest rates).

Nevertheless - how do you "flip" a property?

Buy, renovate, ImmoScout listing, sell, pocket the profit and pay taxes.

Nevertheless, you pay a very high portion of the total income for rent. Well, the apartment will certainly be too small with 3 people, hence the move out.

Well, this is Munich... It squeezes me now and then too, but we searched for a year and a half until we had something that met our wishes, was "affordable," and most importantly: we actually got it in the end. This path eventually led me to pursue the purchase of the old apartment; before that, this form of ownership was rather a no-go...

Regarding the original question:
Check with Deutsche Bank. In Q4 2019, they had significantly better conditions for an investment property than Dr. Klein and others for me.
Condominium with a purchase price of 175K€ + additional costs, financing of 150K€ over 15 years full repayment at 0.59% (however, no special repayments or the like, but why with such low interest rates).

Thanks for the suggestion – that leads me to the question of how intermediaries like Dr. Klein work – is there a moment on the timeline when they obtain "exclusivity" on my financing request? In other words, I submit a request to Deutsche Bank through the intermediary, receive conditions, and then go directly to Deutsche Bank to ask for conditions again? Is there a strategy on how to handle this ("first intermediary, then direct bank" or the other way around)?

Thanks!

Best regards

TwistedHead

that leads me to the question of how intermediaries like Dr. Klein work – is there a moment on the timeline when this "exclusivity" is granted for my financing request. In other words, I submit a request through the intermediary to Deutsche Bank, receive terms, and then go directly to Deutsche Bank to ask for terms again?

No, there is no exclusivity.

The banks have their terms stored in the intermediaries' software system. There is no request from the intermediary to the bank. This only happens when you sign and conclude the contract. So you can request the terms from the same bank 10 times through 10 different intermediaries and it has no effect at all.

Sparkasse Munich, as the market leader Allianz is currently also offering good conditions.