Financing purchase of existing house BW, 800-850k€

  • Erstellt am 2021-12-08 14:01:55

ArmAberSexy

2021-12-09 17:24:07
  • #1
The discourse that has arisen here is really very interesting :)

I can understand a lot, especially given the different "risk profiles" of the individual. In particular, the point about double full-time when there will prospectively be 2 children. I have often modeled this everyday life in my mind – and I am also convinced that it can work – but the consequences for private life when family and work then have priority number 1 still make me shudder.



Thank you very much for taking the time to look at the listing! But I would like to counter a few points:

1. This is not even a “better” village. It is just a village with an acceptably good A5 connection. That is why I would never value the land price at more than €400/m² without feeling really cheated (this is roughly the price every acquaintance of mine in the immediate area has paid so far and which I actually still find too high). For this reason, I find the resulting valuation of the house at least a bit too high. When I consider what companies have offered me for houses for €700k+ which I also get to help design myself, are energetically state-of-the-art, and are not significantly smaller, I can only come to one conclusion. Please counter argue this here.

I ultimately cannot shake the thought that the land prices just cannot be considered linear in value because plots beyond a certain size simply are no longer available, while the 150–250m² plots on which developers want to place their row houses for reasons of efficiency are basically “thrown in” as a package.

2. Your figures/assumptions definitely apply to a rental agreement. However, the current owner has always offered these on a platform basis (AirBnB, Booking.com, etc.), where, according to my research, prices of up to €50/day can be charged for such a nice apartment. This is very clever + practical because:

    [*]There is a lot of demand for this kind of flexible accommodation
    [*]You do not have to enter into a rental agreement with all the contractual obligations
    [*]More income can be generated
    [*]The platforms offer the possibility to market it as a long-term accommodation (1 month+) which companies especially like to use for their employees as an alternative to hotels

Feel free to counter-argue here as well. My information is based on friends whose parents offer holiday apartments in a similar way, myself having used this abroad, and of course the current landlord’s details. The disadvantage is of course a somewhat higher administrative effort, but onboarding a new guest every few weeks doesn’t bother me at all, it pays off and we enjoy meeting new personalities (whom we could even choose depending on the case hehe).

We are definitely speculating in the whole plan on corresponding salary increases in order to then reduce the workload to at least 60-80% without losses. A net salary increase of €150-200/person*year as an entry-level employee within the first 5 years is almost standard to retain employees in the industry (and has been proven in the last 2 years) and is very likely in our (naive?) eyes so that you almost have to reckon with it.
 

MarcelEva83

2021-12-09 17:36:02
  • #2
I would like to point out that AirBnB as a concept is quite controversial and that you also have a not to be underestimated additional organizational effort with the apartment - especially if you rent it out short-term repeatedly.
 

saralina87

2021-12-09 17:38:28
  • #3
Not only controversial, but in many places simply prohibited. And: don't forget the tax office! These private, short-term rentals are currently (rightly) in the focus of many "investigators".
 

ArmAberSexy

2021-12-09 17:51:47
  • #4
That's true - in big cities, in my opinion, it should definitely be banned. However, in rural areas, I could still reconcile that with my conscience. We both find the idea of running a corresponding holiday apartment with passion as a really attractive side job where you definitely meet interesting people. Once you have built up a certain visitor base, you might not even be dependent on the platforms anymore.

Oh, I can't endure that much beautiful pipe dream - with not insignificant probability is right and someone else will top it and goodbye. :rolleyes:
 

apokolok

2021-12-09 17:52:16
  • #5
I think you overestimate what you get for 700k for a house. Not even close to what you have here in the old building. 250m² living space alone already comes to 700k, then you have the basement (partly of living quality) + the expensive outdoor facilities + pool + garage. If you wanted to build the place today, you'd be well over a million. I've also looked at the other houses in the town. For 800k there are clearly worse properties. So I really don't see any chance there. It’s still within the catchment area of SAP / Mannheim / Ludwigshafen. There are people who have the money. But I roughly share your assessment of the land value, it’s not more than 3-400€. I live a bit north of you, there the plots don’t go for less than 1000€/m² and the property you are aiming for I would easily price at 1.3 million. It all fits together. You can try it, but I’m pretty sure you will get a faint smile. About Airbnb: yes, sure, it is financially more attractive over the rented period, but try renting out the granny flat in the village long-term. I guess it’s hard to get over 50% occupancy there. The effort is also completely different, you have to clean very regularly and have people there who want to know something, etc. It’s not that I don’t wish you well, but the thing is just two sizes too big for you.
 

Myrna_Loy

2021-12-09 17:52:38
  • #6
It only gets bad when they have their own opinion I also don’t like having constantly changing strangers nearby when I have children.
 

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