Alex85
2018-08-03 15:00:14
- #1
What if your mother acted as a guarantor. Would something like that be possible with a construction loan? Or if you as a tenant were also taken into account in the financing. Then there would be 3 salaries on the side.
What kind of creditworthiness does your mother have to be able to guarantee six-figure amounts? I think in that case it should be you moving into your mother’s outbuilding rather than the other way around...
Seriously, either she joins the financing, meaning she becomes a borrower (with all rights and obligations) and probably remains so, or she is not an option. In such a setup your wife will probably not acquire any ownership of the house, be aware of that. Potential for conflict. If the mother then dies, her share of the house becomes part of the estate. Then you have to buy out the other heirs. Or worse, they don’t want to sell their share but want to make other use of the house. Oh, that’s going to be fun...
The rental model is nonsense. Construction costs rise in proportion to the rent paid. In addition, rental income is taxable, meaning the money does not go 1:1 towards loan repayment. A tenant’s income is not taken into account in the financing, but the applicable rent is. Minus taxes and the risk of vacancy and thus rental losses.
Are you aware that your equity will be completely used up for purchase-related costs and the like? You thus have a 100% financing, possibly even more with bad luck, and then you additionally need a consumer loan to pay incidental costs, a kitchen, a lamp.
Everything here is on red. Start saving properly, if necessary halve car expenses, get your wife into work and complete the probation period so that two salaries are taken into account.
P.S.: The congratulations from ypg on the cheap plot of land is a double-edged sword. The price is so low that it is conceivable that banks, due to the obviously very structurally weak region, will take further safety deductions. That means the construction costs will not be recognized 100% as the lending value. Many lenders will drop out because it is mathematically financed over 100%. Or the next consumer loan will be taken out to compensate for these deductions... Boy, leave that alone!