Financing | Single-family house | Feasibility | 2nd rank

A note from me. The value of a rented condominium is different from that of a vacant one (namely lower). At the price you mentioned, it doesn’t even yield 3% (at €300,000 purchase price about 2.5%, excluding purchase incidental costs, which still have to be paid). And that’s the gross yield before operating costs and taxes. So an extremely unattractive investment - at least for a capital investor in the real estate sector. The owner-occupier will demand a significant price reduction because they have to enforce a termination due to personal use.

Thank you for your feedback. The repayment rate for this was even much higher for 4 years. Regarding classic yield calculations, etc., you are of course right, but the condominium was relatively cheap at the purchase price and the purchase has proven very worthwhile for us by now (appreciation). PS: The valuation was of course in the rented condition. Best regards

Then bridge the financing and get rid of it. You’re not so well-off that it works easily on the side. So set priorities. Or rent a small house.

Thank you for your feedback. The repayment rate was even much higher for 4 years. Regarding the classic return calculation, etc., you are of course right, but the condominium was relatively inexpensive in the purchase price and the purchase has now paid off very well for us (appreciation).

PS: The valuation was of course in the rented state.

Regards

yes, but you forget one thing in your calculation.

You only repaid "30k" for the apartment. The appreciation is not equity built up, these are external factors, even if they work in your favor.

Otherwise, why did you take out installment loans if you are good borrowers?

So sell the condo, the house is too big in this constellation. And with the value of the condo, I would definitely do it.

As a buyer of a rented condominium with an interest in personal use, I would always inquire in writing: Are there any known obstacles related to the tenant that could complicate a termination due to personal use?

And the written answer to this question (or the lack thereof) would strongly influence the purchase price or my intention to buy.

Plus, in the year 2020, the chances of success for a termination due to personal use will tend to zero because of various Corona regulations favoring tenants. I would also factor that in as a buyer.

Right! We decided to buy a condominium and pay it off instead of putting the money into a savings account.

You write further up that the monthly installment is 600 euros and the cold rent is 613 euros. So the apartment basically pays for itself at the moment. Which money exactly from your own are you using for the repayment instead of putting it into a savings book? None at all.

I have read your information and I feel that you do not have your expenses under control. Your stated equity is lower than the consumer or personal loans. Additionally, you are not saving a cent on your savings account (apartment), you are even withdrawing 13 euros from it every month. And this although you have been looking for a house for seven years. Don't be mad at me, but all of this sounds poorly thought out and badly planned.

You don't have your expenses under control now, so how do you want to manage that with a house financing on top? Reduce consumption? You could have done that in recent years and saved yourself the consumer/personal loan. What will you do if renovation work is due in your rental apartment that is decided by the owners' association, like a new facade? Take out another loan?

My tips:

1. Optimize expenses
2. Optimize income
3. Pay off unnecessary consumer loans
4. Build up equity

How old are you?