Alibert87
2020-12-01 11:42:01
- #1
Topic "getting money back in 15 years". Suppose you pay 500 TE including renovation, this as a loan. The equity for incidental costs and as a cash reserve during renovation. This is not a recommended approach for the financing calculation but for the better "moral understanding":
In 15 years you should have roughly paid off the incidental costs plus at least (roughly) half of your loan. So you have about 250 TE of the house that then belongs to you.
If you can then at least sell the place for this 250 TE (so with a purchase price of 500 in 2020 still 250 TE selling price) you break even with the story. Just like with the rental apartment – 1200 cold * 15 years is at least 250 TE even with only minimal rent increases, which are really gone – lived in both cases.
The trick: if you get more than 250 TE for the place in 15 years then that is your profit. Even tax-free. For that you also don’t have to fear a termination for personal use, no rent increase, and you can renovate inside to your heart’s content without asking the landlord. And if you haven’t had a garden so far you would have had one for that long.
PS: What is your problem with the garden? Do you currently even have one that can also be accessed from the outside? Do you even currently have a garage? Why would you then miss that at RH?
Regarding your calculation: we pay about 800 cold (144 TE in 15 years). No matter how you look at it, we pay 550 TE for this property.
The main reason to buy a property at all is a garden (we have a small child + possibly more children in 2 years). We currently have no garden and no garage, and I also have to take the bikes out of the basement every day with effort. That should be the added value: garden + garage or storage option