What speaks against officially acquiring the property NOW? Interest rates are rising
a) My possibly incorrect assumption that financing 100% of our needs with a fixed-term contract + probation period could lead to unfavorable loan conditions. b) My possibly incorrect assumption that my parents might have irrational issues with “renting” in their former own house. If both a) AND b) are wrong, objectively nothing.
The house value and the maximum credit limit for you are two completely different things. If the house is worth 300k and your bank advisor now says he will give you 600k credit, would you pay 600k?
No. I definitely communicated that incorrectly, perhaps misunderstood/misused the term 100% financing. We want to know how much the property is worth to the financing bank as collateral and to have THIS amount as a 100% loan. Whether we would get more based on our salaries is not the issue. Maybe it doesn’t work that way? My parents would like to know THIS still unknown amount for their own planning security. Since I assume that this is LESS than the market value to third parties AND we save 6.5% tax on purchase (about 20k), I don’t even see the “squeezing” on the horizon. I assume that I did not represent the situation well.
Don’t you have a rough idea what the place would fetch on the market?
A very rough one. The free(!) super quick analysis you can get online from various portals resulted in a range from 340k to 380k in September 2021. Such a delta is too much for my parents for their own planning, especially since their purchase and this valuation would also be 1.5 years apart timewise.
I don’t read here that the credit limit defines the value.
I didn’t explicitly write that either and in my opinion did not imply it? So you understood me correctly, see above!