Franconia
2021-01-11 20:32:03
- #1
The property is owner-occupied, so it’s unlikely to be tax-deductible. Obviously, it would be more attractive if it were rented out.
Thank you very much for your comment about deposit protection. I hadn’t really considered that. It’s about a risk of 70,000 euros that might not be covered in 20 years. We each have a 100,000 euro deposit guarantee since there are two of us. But very good point.
We can avoid this by making special repayments on the essentially interest-only loan (which is possible at 5% p.a.) – then less than 270,000 would be needed to pay off in 20 years. So we need to make sure we have repaid the 70,000 by then. At least that’s the plan now. Let’s hope it doesn’t come to that and the state has to secure the deposits. But who knows.
Thank you very much for your comment about deposit protection. I hadn’t really considered that. It’s about a risk of 70,000 euros that might not be covered in 20 years. We each have a 100,000 euro deposit guarantee since there are two of us. But very good point.
We can avoid this by making special repayments on the essentially interest-only loan (which is possible at 5% p.a.) – then less than 270,000 would be needed to pay off in 20 years. So we need to make sure we have repaid the 70,000 by then. At least that’s the plan now. Let’s hope it doesn’t come to that and the state has to secure the deposits. But who knows.