PeterSchandl
2015-03-18 20:37:17
- #1
Hello everyone,
my name is Peter and we live in Brandenburg, but directly on the outskirts of Berlin in a semi-detached house for rent. The owner now intends to sell our rental house and we are considering purchasing it. However, this is against the following background. Within 4-5 years at the latest, we want to build a house on a plot that we have yet to buy. This brings me to my question.
We want to finance the semi-detached house entirely without using equity – not because we don’t have it, but because we want to use it for the aforementioned purchase of the plot and the house to be built. When we move out of the semi-detached house, we want to rent it out and use it as an investment. Regarding the numbers.
Purchase price of the semi-detached house: approx. 145,000 euros
Net household income: 5,000 euros
Since prospective buyers for "our" semi-detached house usually want to live in it themselves, we would very likely be given notice. In our immediate area, however, there are almost no houses for rent, so we want to prevent forced eviction with the described approach and at the same time make some provisions. What do you think about it? Is this a sensible idea? The plan would be to finance it through a KfW 124 loan, which can also be used for incidental purchase costs, and a normal bank loan – we would then want to use one of the few banks that count the KfW loan as equity. But does something like this basically work? In other words: we would want to finance not only the house 100% but also the incidental purchase costs (approx. 19,000 euros).
I look forward to your honest tips and advice.
Best regards
Peter
my name is Peter and we live in Brandenburg, but directly on the outskirts of Berlin in a semi-detached house for rent. The owner now intends to sell our rental house and we are considering purchasing it. However, this is against the following background. Within 4-5 years at the latest, we want to build a house on a plot that we have yet to buy. This brings me to my question.
We want to finance the semi-detached house entirely without using equity – not because we don’t have it, but because we want to use it for the aforementioned purchase of the plot and the house to be built. When we move out of the semi-detached house, we want to rent it out and use it as an investment. Regarding the numbers.
Purchase price of the semi-detached house: approx. 145,000 euros
Net household income: 5,000 euros
Since prospective buyers for "our" semi-detached house usually want to live in it themselves, we would very likely be given notice. In our immediate area, however, there are almost no houses for rent, so we want to prevent forced eviction with the described approach and at the same time make some provisions. What do you think about it? Is this a sensible idea? The plan would be to finance it through a KfW 124 loan, which can also be used for incidental purchase costs, and a normal bank loan – we would then want to use one of the few banks that count the KfW loan as equity. But does something like this basically work? In other words: we would want to finance not only the house 100% but also the incidental purchase costs (approx. 19,000 euros).
I look forward to your honest tips and advice.
Best regards
Peter