Financing plan for a single-family house with a separate apartment - what do you think about it?

  • Erstellt am 2013-01-31 13:57:28

satoschu

2013-01-31 13:57:28
  • #1
Dear construction experts,

we are currently just about to sign our house contract and now I am trying to find a financing option that makes sense for us. I think we could do quite well with the following model, but I would like to ask for your opinion and constructive criticism of any kind.

We are building a single-family house with a granny flat. The granny flat is to be rented out, which could generate about €390 monthly.

Now to the financing:


    [*]We have a loan-to-value ratio under 60%
    [*]Net income without children is currently about €4400, but a child is planned in the near future


We want to finance the granny flat and the owner-occupied part separately in order to be able to write off the interest for the granny flat for tax purposes. We aim for a monthly rate of a maximum of €1100 (plus additional costs, which will be about €400 for everything). Since we have been keeping a household budget for some time now, we would still have a decent surplus with this rate for two full earners, but we prefer to play it safe (which is why we do not take rental income into account).

We now have a financing offer with the following conditions:

Annuity loan through insurance, 20 years fixed interest rate, effective interest rate of 3.0%, adjusting the monthly rate twice free of charge, special repayments up to 5% annually


    [*]Loan 1: €110,000, repayment 3.9%, residual debt after 20 years = 0
    [*]Loan 2: €60,000 for granny flat, repayment 1%, residual debt after 20 years = €44,595


Rate: €822.55

Additionally, a KfW loan for energy-efficient construction over €50,000, 10 years fixed interest rate, 20 years term
Rate: €249, residual debt after 10 years about €27,000

The plan would be to initially channel all special repayments, for example from the rental income, into the KfW loan and then after 10 years either pay it off or have only a small remaining debt. The €249 monthly would then be used after 10 years to increase the repayment rate for the granny flat loan and thus also be free of it after 20 years.

What do you think about this? Do you think it makes sense fiscally to separate the two loans and initially repay the loan for the granny flat at only 1%? If both loans were combined, about €6,000 could be saved after 20 years, but it would be much harder to demonstrate this to the tax office and I think the tax savings would be significantly greater over time. Do you notice anything else? Have I forgotten anything?
 

b0012sm

2013-02-03 21:25:32
  • #2
Hello, well, I would consider taking 100,000 euros (possible due to two residential units!) from the KfW energy-efficient loan, then make the loan repayment-free for five years and use the repayment for the other loans. Then the first loan would amount to 60,000 euros. Here a 10-year fixed interest period at much better rates is sufficient. I would also fix the second one for 10 years and choose a repayment of 1-2%. Then make special repayments on the KfW loan. Calculate it yourself, you will come out better. Regards Micha
 

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