Financing Check: Building a House in 2.5 Years

He can easily suggest that since it sounds good, he wants to generate a degree, and in the end is not liable for it.

The tax advisor is the right contact person. Although every reputable professional cannot give you a different answer, since this context is absolutely clearly regulated for tax purposes.
You just have to ask yourself logically what I am taking out the loan for. Do I want to generate income with it or do I need it for myself?
If the answer is always the latter, it cannot have a positive tax effect for you either (complex tax-saving models excluded).

I did a little reading today – the suggestion from the financing broker was more than 'grey'.

Well, I got a notification today that the processing time of the bank is being extended somewhat due to illness. Annoying.

I did some reading today – the proposal from the financing broker was more than 'gray'.

Unfortunately not uncommon.
There are many people in Germany who consider themselves tax experts.

To give you some feedback on the rest of the question, as apparently the other users who usually rush onto finance threads are no longer active in an older thread:

In my opinion, the financing structure entirely depends on the permanent rental of the multi-family house.
Since we do not know how the property is rented (e.g., to friends, relatives, etc.), the typical rental risks like vacancy, missing rent payments, etc. obviously come into play.
That doesn’t mean it can’t be done this way, but an additional buffer should be planned for this.

It would of course be advisable to actually get the mentioned €40,000 loan + reserve so documented in a loan agreement so that you can legitimately deduct these costs from taxes.
To what extent the bank cooperates here would need to be clarified.

Given your profession and the probable salary increases and the partner’s resumption of work, I would trust this project if I were you.

In the end, however, I wouldn’t put too much stock in the opinion of a forum when it comes to financial matters, especially such crucial ones.

There are only a few forum members here with a financial background, so you can place their opinions significantly above the average forum participant (who has built and financed a house) and thus derive considerable value from their statements.

To me, it sounds feasible with the apartment building in the background & the income. Upper limit with the loan and free equity, for sure. If the job is secure enough, and if necessary, income losses of the main earner can be compensated by the partner, it still seems quite doable to me. Have you calculated any worst-case scenarios? Like, job loss, only new employment with significantly worse conditions, 15 more years of annuity to the donor, major investments in the apartment building, or longer rental losses?

Upper limit for credit and free equity, certainly.

Yes, I agree.

In the end, I wouldn’t put much stock in the opinion of a forum when it comes to financial matters, especially such decisive ones.

Of course. We’ve only recently been dealing with these sums. Privately it’s still something different than professionally... I’m happy to take a few impulses from others.

The multi-family house is actually my smallest concern. There are 8 apartments with 314 m² of living space and a small commercial hall next door. The loss of rent from one apartment therefore doesn’t make much of a difference. All fully rented. The apartments are well maintained, part of them completely renovated in 2010, the rest in 1985. But all renovated. The house is in good condition – only the facade needs to be redone in the next few years. There is rent growth potential as well, currently €6.22, rent index is at €8.75. The tenants have accepted the first rent increase.

Ultimately: In the end, we would sell the multi-family house if something drastic happens. Anyway – once we reach the rent index, the question arises whether to sell the house then – but that is a question for the end of the fixed interest period. Unfortunately, the Schenkering will not live for 15 more years, more like 5. She is already ill, well.

My job is more critical, though crisis-proof. There is a disability insurance, €2000/month. I think it depends on the nature of the setback.

May I ask what a current sale of the [Mehrfamilienhaus] would bring in. I bought a similar [Mehrfamilienhaus] 11 years ago and would also want to sell it. However, in [Sachsen Anhalt].

Thank you!

May I ask what a current sale of the multi-family house would bring in. I bought a similar multi-family house 11 years ago and would also like to sell it. However, in Saxony-Anhalt. Thank you!

So the offers that were available to me 2-3 months ago were at a factor of about 33