House Purchase - Complicated Situation

You could also get an appraiser to evaluate the property.

Assuming the house is worth 600k, you buy it from your father for 400k and in a way you have already received your inheritance share.

For you, the purchase price decreases, the siblings are not disadvantaged.
The question is whether your siblings then receive the payout immediately and if not, how that is contractually agreed upon.
You wouldn’t want your father to live large and have nothing left for the siblings after his death. ;)

You would have to look at your father’s total assets.
But somehow something like that should be possible.

As siblings, I would feel pretty fooled.

Why?

We have the house appraised by an expert, and we base the entire thing on that value. And in my proposed model, after a certain period, we don't simply swap the apartment for the house, but continue to pay off the residual value of the house. Almost as if a third party would buy the house.

Whether one then of course reduces the purchase price a bit and simultaneously assures/pays out the siblings would have to be considered or would be an option.

Then you can’t rent it either if the rents are that high. Unless the rent is set too low, then the tax office and siblings feel cheated. If the cold rent is €1,500 (+X?), which easily fits such a house price in an adequate location, you can also take out nearly half a million as a loan, since the installment is identical.

We have now roughly calculated with a rent of €1,000 + additional costs. Why should the tax office feel cheated? Renting to relatives at cheaper prices is not unusual. And a loan of €500,000 as mentioned would not be enough to buy the entire house including renovations directly. We are more towards €600,000 which again results in a very high installment. Then I have the problem again.

Why should the tax office feel tricked?
Renting to relatives at cheaper prices is nothing unusual.

Because if you only apply 50%, you have to explicitly prove that you will make a profit over the term. That is almost impossible or at least insanely difficult.

We have now roughly calculated with a rent of €1,000 + additional costs.

You can only get one apartment for that in reasonable locations. So the €1,000 is a significantly discounted rent. Thus, your father is gifting you, for example, €60,000 over 10 years. What do the siblings get in compensation for that?

And a €500,000 loan, as mentioned, would not be enough to buy the entire house including renovations outright. We're more in the region of €600,000, which again translates into a very high rate.
Then I have the problem again

I conclude from this that a) you have no equity and b) no liquidity. And then you want to buy an apartment for rental? At €300,000 that's roughly €330,000 (+/-) total costs. The bank will demand around €60,000-100,000 equity from you. Are you aware of that?

Whether you then of course reduce the purchase price a bit and at the same time assure/pay out to the siblings would have to be considered or would be an option.

You should definitely clarify that beforehand and discuss it with the siblings as well. Otherwise, it might lead to disputes in a few years. Even if the siblings themselves agree, but their partners find it annoying (even though they naturally have no say), this can lead to tensions within the family.

Normally, your siblings would inherit a part of the house. If you make a deal with your father, that might no longer apply later on. So they wouldn't receive anything, because upon your father's passing, the house will already belong to you. Maybe a share of the apartment, but that will be significantly smaller.

It could of course also be that your siblings already own their own houses and are financially well off enough that they don't care at all if you get the house.

The most interesting and obvious scenario, you named yourself:

"real" house price about 550-600,000 + renovation another 50-100,000€ is currently hardly feasible for us or only at the absolute limit.
But since the income is uncertain in the next months/years (possibly a new job --> salary? parental leave? etc.) we are looking for an alternative possibility.

You are looking for an alternative, but only you benefit, everyone else is a puppet.
Apart from the fact that you want to move into an "unrenovated house"? (or do you want to invest money there),
what if you want or have to move somewhere else because of the job? What does dad do with the then vacant parental house without rental income? And where do you get your further capital from? Does he have to move again because of you?

What would you say if a sibling wanted to do it like that? Make a deal with dad: dad moves into a one-room apartment, sibling moves into the parental house with the family. Deals between both parties run. They live in the house for over 10 years, which reduces its value. Dad dies and leaves a house he was still able to pay off from the rental income of the sibling. There is then an inheritance community of 3 siblings, of which one sibling still lives in the house. The house is practically unsellable due to the rental and you watch your inheritance fade away over the 10 years from the start.

Another scenario: what if you, as a tenant of your parental house, get kicked out by your wife? Separation?! She stays there with the children, you pay the rent.... your dad can’t sleep anymore... after all, the apartment he lives in is on the sales list, but he can’t move back into his house because it is inhabited by mother and children.

In that case, father could buy the apartment from us and in return we take over the house.

It’s not like everything is bought, sold, moved within a week for free, especially not if there are other equal parties involved. It always has to be notarized again and again. Possibly wills even have to be changed. These are always contributions in the four-digit range for each position.

What you simply don’t consider is that it is legally not so easy to make deals behind the backs of other family members when a lot of money is involved.
If each of you three thought like that, you would be selling dad :oops:

What you also don’t consider: you definitely have to pay off this one apartment loan!