Is 100% financing possible at an older age?

  • Erstellt am 2022-03-29 12:41:39

Hyponex

2022-03-29 18:40:47
  • #1
Good evening,

well, I don’t see any problems here...

1) Family sale, i.e. the bank would probably finance based on the value of the property here, and not on the purchase price
(PS. it is a sale from the sister, so real estate transfer tax applies here!)
2) if the price is indeed higher than the value at the bank, additional collateral can be provided here.
3) the rental income is unlikely to cover the "calculatory rate of the bank" (currently assumes about 5-6% of the loan amount p.a.)
but I think you live "rent-free" in your own property, so the rate would also be manageable in retirement
so the bank would calculate the capital service here based on the retirement income instead of current income.
(so the €2500 rate should fit for you, minus the rental income)


you have the following options here:
house financing (ideally purchase + the incidental purchase costs as one loan)
house as additional collateral = try to have enough registered so that you come to 60% loan-to-value for the conditions
disadvantage: not all banks want to do one financing with 2 properties, some charge surcharges if they have to examine 2 properties.

Alternatively:
best to ask the tax advisor here:
2 financings (60% on the new house from the sister) 40% + incidental purchase costs on the existing house
advantage: more banks to choose from
disadvantage: clarify the tax deductibility with the tax advisor
 

Hyponex

2022-03-29 18:43:17
  • #2


so "but it looks like I ‚have to‘ buy my sister’s house soon in order to rent it out"

buying from sister = real estate transfer tax applies....

it would be tax-free in a direct line (vertical!)
so if you buy it from parents, grandparents, or if you buy it from your own children...

if you buy from sister, uncle etc., real estate transfer tax always applies.
possibly, for example, if it is an inheritance from the parents, i.e. the sister owns 50%, 50% still belongs to the mother, then tax would only have to be paid on the 50%.
 

HilfeHilfe

2022-03-30 05:45:21
  • #3
Hello, I don't see any stress with the conditions either. Best to inquire with an intermediary. One has already replied to you.

No one can take away anything else like your "Risikoappetit" in old age. However, you have so much real estate wealth, sell if it gets tight in old age.
 

Grundaus

2022-03-30 08:49:11
  • #4
Sorry, that was my mistake, I assumed that no real estate transfer tax would apply. Then a "gift" to my sister, as a reward for the low purchase price, becomes tax evasion. That could be avoided if she sells to my parents and I buy from them, with double notary and land registry costs. Or is that illegal?

I actually want to get rid of it in retirement because I can no longer/will no longer afford what I have to add on top of the rent received. According to the last pension calculation, my gross pension will be less than half of my current gross salary. How much rent/pension will increase, and what the tax situation will be like in 15 years, no one knows at the moment, especially not regarding life insurance, company/Riester/private pension.
 

Tassimat

2022-03-30 09:16:49
  • #5
I would have expected a calculation, not an estimate. That is an extremely bad premise. Nothing is riskier than a forced sale. If interest rates are high and purchase prices are low at that time, you may end up taking a loss. In the end, you are making a very risky bet with money you do not have. I believe your children will get more money for an easier start from you if you invest the ancillary purchase costs in ETFs now.
 

Grundaus

2022-03-30 11:44:03
  • #6
What kind of invoice do you expect when there isn't even a purchase price set yet? For a single-family house, there won't be many non-transferable costs. The 3% is a benchmark for the area. The sale will not be forced in retirement either, and as already argued, prices will not decrease. At least not in the area. The question is what I prefer in my retirement: a house worth 700,000 and 200,000 in debt or 500,000 in cash. First, RK1 was compared with RK3, secondly ETFs yield 5-7% after taxes (long-term), whereas houses over the last 10 years were significantly above that, leveraged S&P or Tesla even more so.
 

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