Werks12
2012-03-02 12:36:31
- #1
Hello everyone, I would like to present our specific case.
First, the property details: Single-family house, built 1962, fully basemented, ground floor-1st floor-attic (not developed->small), garage on approximately 1000m/2 plot. The house has a living area of 159m/2. Consisting of two bathrooms, a guest WC, dining room, kitchen, and 6 other rooms. The house is located in the greater Cologne area in a central but quiet location. The house + land is valued at 330,000 - 300,000 euros. The house belongs to my father-in-law, and he would like to transfer it to my wife. He demands about 50,000 euros in cash directly or 400 euros monthly as a life annuity. Actually, my father-in-law and we agree that the 50,000,- is the more comfortable option. Does anyone here perhaps know how this is taxed? If the taxes due on it would be too high for my father-in-law, he would probably decide on the life annuity after all. Important here: If he chooses the lump sum payment, he does not want to invest the money but to dispose of it freely. In case of death within 10 years, this amount will be offset against the other inheritance assets to the heirs. Everything that "happens" after 10 years will either be regulated in the will or the remaining assets/values will be divided among the heirs.
Now to the renovation: The heating system needs to be completely new. Currently, a gas heating system is installed. Actually, we also want to stay with gas. The electrical system needs to be renewed. The room doors + frames must be renewed. Bathrooms + installation and piping need to be completely renewed. The kitchen must be tiled. In some rooms, the flooring has to be renewed. In the living and dining room, the parquet must be sanded (minimally). Additional problem: In almost all rooms, a lot of smoking took place. Could this still have any consequences? Wallpapering, painting, and similar will of course be done as well. But can there still be odor or paint problems because of the nicotine? The windows are actually still okay. Double glazed, but the frames have naturally also been affected by nicotine. Additionally, some are slightly warped (opening and closing).
Regarding finances: We can do the cosmetic repairs, laminate, and demolition (bathrooms, etc.) ourselves. The rest would mostly have to be contracted out. We have about 10,000 euros in equity. I earn about 45,000 euros net per year (permanently employed for 15 years) + child benefits. My wife is on parental leave (3 children). Our rent is about 1,050 euros/month including all additional costs. Unfortunately, we haven’t been able to save much as I still have to repay a loan. The amount is currently still 7,000 euros with 464 euros monthly repayment and interest (8.4%). We would like to obtain the money for the renovation and the 50,000 euros for the father-in-law via a mortgage on the house. I actually want a high repayment rate but do not want to pay more (including additional costs) than now. What kind of conditions can I expect (house is the security for the bank and unencumbered)? What amount should I plan for the renovation (normal standard)? Who can make such a list for me? Building surveyor? How and where do I find a good one in the Cologne area (preferably also via PN)? Or do different surveyors have to look at the house? What is the best way to approach such a project?
To the MODS: If I am in the wrong subforum, please move.
First, the property details: Single-family house, built 1962, fully basemented, ground floor-1st floor-attic (not developed->small), garage on approximately 1000m/2 plot. The house has a living area of 159m/2. Consisting of two bathrooms, a guest WC, dining room, kitchen, and 6 other rooms. The house is located in the greater Cologne area in a central but quiet location. The house + land is valued at 330,000 - 300,000 euros. The house belongs to my father-in-law, and he would like to transfer it to my wife. He demands about 50,000 euros in cash directly or 400 euros monthly as a life annuity. Actually, my father-in-law and we agree that the 50,000,- is the more comfortable option. Does anyone here perhaps know how this is taxed? If the taxes due on it would be too high for my father-in-law, he would probably decide on the life annuity after all. Important here: If he chooses the lump sum payment, he does not want to invest the money but to dispose of it freely. In case of death within 10 years, this amount will be offset against the other inheritance assets to the heirs. Everything that "happens" after 10 years will either be regulated in the will or the remaining assets/values will be divided among the heirs.
Now to the renovation: The heating system needs to be completely new. Currently, a gas heating system is installed. Actually, we also want to stay with gas. The electrical system needs to be renewed. The room doors + frames must be renewed. Bathrooms + installation and piping need to be completely renewed. The kitchen must be tiled. In some rooms, the flooring has to be renewed. In the living and dining room, the parquet must be sanded (minimally). Additional problem: In almost all rooms, a lot of smoking took place. Could this still have any consequences? Wallpapering, painting, and similar will of course be done as well. But can there still be odor or paint problems because of the nicotine? The windows are actually still okay. Double glazed, but the frames have naturally also been affected by nicotine. Additionally, some are slightly warped (opening and closing).
Regarding finances: We can do the cosmetic repairs, laminate, and demolition (bathrooms, etc.) ourselves. The rest would mostly have to be contracted out. We have about 10,000 euros in equity. I earn about 45,000 euros net per year (permanently employed for 15 years) + child benefits. My wife is on parental leave (3 children). Our rent is about 1,050 euros/month including all additional costs. Unfortunately, we haven’t been able to save much as I still have to repay a loan. The amount is currently still 7,000 euros with 464 euros monthly repayment and interest (8.4%). We would like to obtain the money for the renovation and the 50,000 euros for the father-in-law via a mortgage on the house. I actually want a high repayment rate but do not want to pay more (including additional costs) than now. What kind of conditions can I expect (house is the security for the bank and unencumbered)? What amount should I plan for the renovation (normal standard)? Who can make such a list for me? Building surveyor? How and where do I find a good one in the Cologne area (preferably also via PN)? Or do different surveyors have to look at the house? What is the best way to approach such a project?
To the MODS: If I am in the wrong subforum, please move.