toxicmolotof
2013-12-19 20:50:19
- #1
So let's split the fun:
Purchase price 163, of which 69 is land value and 94 building value
The land value will hardly be negotiable, apart from local peculiarities. The house has a value of 94, of which 20% is a "safety discount," remainder 75.
At the beginning you wrote that of 80 renovation costs only 45 are recognized. A 50% rule or something comparable is okay for a rough estimate.
However, you now write something about 45 renovation, which would then perhaps mean 25 are evaluated.
That makes: 69+75+25 = 170 TEUR value AFTER! renovation.
However, with your presented calculation only 226 TEUR were spent, at first you wrote 195+50=245 TEUR, something doesn't add up here. The difference is probably in the renovation costs, which they have changed.
But all in all, it remains to be noted that 195 TEUR is significantly ABOVE 170 TEUR, that will be where the massive markup comes from. These numbers basically confirm my thesis above that the 136 TEUR represents the 80% land value limit.
For the 195 TEUR loan you still pay 30 TEUR (20 TEUR probably remain in the calculation) out of equity into the house and the bank values the house at 170 TEUR. The market value will normally be above this value, but certainly not at 220 TEUR or even 240 TEUR.
If you are really serious, I would consult a real estate expert and if necessary inspect the property together with him. In my eyes there is a quite significant difference here between actual material value and purchase price.
Purchase price 163, of which 69 is land value and 94 building value
The land value will hardly be negotiable, apart from local peculiarities. The house has a value of 94, of which 20% is a "safety discount," remainder 75.
At the beginning you wrote that of 80 renovation costs only 45 are recognized. A 50% rule or something comparable is okay for a rough estimate.
However, you now write something about 45 renovation, which would then perhaps mean 25 are evaluated.
That makes: 69+75+25 = 170 TEUR value AFTER! renovation.
However, with your presented calculation only 226 TEUR were spent, at first you wrote 195+50=245 TEUR, something doesn't add up here. The difference is probably in the renovation costs, which they have changed.
But all in all, it remains to be noted that 195 TEUR is significantly ABOVE 170 TEUR, that will be where the massive markup comes from. These numbers basically confirm my thesis above that the 136 TEUR represents the 80% land value limit.
For the 195 TEUR loan you still pay 30 TEUR (20 TEUR probably remain in the calculation) out of equity into the house and the bank values the house at 170 TEUR. The market value will normally be above this value, but certainly not at 220 TEUR or even 240 TEUR.
If you are really serious, I would consult a real estate expert and if necessary inspect the property together with him. In my eyes there is a quite significant difference here between actual material value and purchase price.