Pommespanzer
2017-05-04 15:32:05
- #1
Hello everyone,
we want to buy a plot of land in the Mühldorf area and build on it. I am 27 years old myself.
I own two condominiums, one valued at 300-350k, one at 156k (but the speculation period applies here). The second, smaller apartment is securely rented to my mother (a social welfare recipient, but I opted for in-kind maintenance (providing the apartment) instead of regular maintenance). The second property (worth 156k) is free of any land charges, but the first apartment (worth 300k) provides the security.
I myself earn 2,750 EUR net + 250 EUR cold rent income from my mother. The service charges amount to 130 EUR. My salary increases by about 4-5% annually.
The first apartment is rented out for 845 EUR cold, 1,040 EUR warm (service charges are 330 EUR). Of the 1,040, max. 700 EUR can be used for other purposes.
The second apartment is rented to my mother, I pay 450 EUR to the bank every month, my mother pays 250 EUR of that. I cover the rest.
At the moment, I have total monthly income of 4,090 EUR, so let’s say 4k. Equity is currently 0 EUR. I have about 12k saved up, but I don't think this can really be considered equity since the incidental construction costs cannot be covered by it.
I currently pay 550 EUR cold rent + 150 EUR additional costs myself.
My girlfriend earns 1,680 EUR net, we have no children. She would officially not co-build the house or land, but would pay rent upon moving in (400 EUR).
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In Mühldorf, building land costs on average 350 - 400 EUR per m2. We want something with 500 sqm. So let’s say: A total of 200k for the plot.
A house certainly costs 300k with a reasonably decent finish, we also want extras like a pool, whirlpool, sauna, and steam shower.
Size up to 170 sqm, that’s plenty for us. It doesn’t have to have a basement, which would cost about ~70k extra.
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Now there are two possible options for me if such a project is basically possible for me:
1. Keep the first condominium and do full financing, allocating 700 EUR per month as the bank installment. I’m already paying 550 EUR cold + 400 EUR from my girlfriend = 1,650 EUR for the bank.
The catch: If my girlfriend ever stops liking me or the tenant moves out (however, the apartment is right near Munich, with over 100k new residents expected by 2030), there could be interruptions and then I would have to live hand to mouth. But there’s always a risk. I would have to finance 500k fully. The advantage of the first option—if nothing goes wrong in the next 30 years—is that the rental income has brought me an additional 300k and the apartment is still worth 300k. So a possible win-win situation. The downside would be that I would have to finance all consumer stuff (furniture, kitchen, pool, stuff etc., but Segmüller also offers 0% financing for that; however, I would pay nice expensive furniture prices then).
2. Sell the first condominium for up to 350k and use the cash. However, my bank would have to be willing to transfer the land charge registration in the land register to the second purchased apartment. The notary would of course be happy about new earning opportunities. Finance the rest. With 200k for the land and 300k for the house, I would have to finance at least 150-200k. Possibly even 250k. If I take my nearly 2.8k net as a basis, I could be done in about 20-25 years (rough estimate) with a 1k/month installment. Then I would be about 50. The disadvantage: I lose the possible return of a condominium that would also bring me 200-250k in 20-25 years.
What do you think? There is also a third option: continue renting. But I’m currently stuck in a 47 sqm apartment without a balcony or garden. The sun is only there in the morning. We don’t officially live together; she currently pays 550 EUR cold, 660 EUR warm. We switch apartments every week so far.
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Children are of course desired at some point but are not yet present. They are already considered in the planning.
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In my calculations I rather do not involve my girlfriend because that can change for reasons that cannot be foreseen now. That means: I want to plan and design everything in such a way that I could manage it alone in case of emergency, without having to move into a beer barrel if everything around me collapses. Of course, I myself do not expect this to ever happen. But horses and vomiting and all that
Now one more question to the experts: What would be my financial leeway that would be realistically feasible for me? 500k for land + house? I personally find that extremely much, then everything in the dream must be included. I currently live in a Munich suburb.
Best regards
Markus
we want to buy a plot of land in the Mühldorf area and build on it. I am 27 years old myself.
I own two condominiums, one valued at 300-350k, one at 156k (but the speculation period applies here). The second, smaller apartment is securely rented to my mother (a social welfare recipient, but I opted for in-kind maintenance (providing the apartment) instead of regular maintenance). The second property (worth 156k) is free of any land charges, but the first apartment (worth 300k) provides the security.
I myself earn 2,750 EUR net + 250 EUR cold rent income from my mother. The service charges amount to 130 EUR. My salary increases by about 4-5% annually.
The first apartment is rented out for 845 EUR cold, 1,040 EUR warm (service charges are 330 EUR). Of the 1,040, max. 700 EUR can be used for other purposes.
The second apartment is rented to my mother, I pay 450 EUR to the bank every month, my mother pays 250 EUR of that. I cover the rest.
At the moment, I have total monthly income of 4,090 EUR, so let’s say 4k. Equity is currently 0 EUR. I have about 12k saved up, but I don't think this can really be considered equity since the incidental construction costs cannot be covered by it.
I currently pay 550 EUR cold rent + 150 EUR additional costs myself.
My girlfriend earns 1,680 EUR net, we have no children. She would officially not co-build the house or land, but would pay rent upon moving in (400 EUR).
------------
In Mühldorf, building land costs on average 350 - 400 EUR per m2. We want something with 500 sqm. So let’s say: A total of 200k for the plot.
A house certainly costs 300k with a reasonably decent finish, we also want extras like a pool, whirlpool, sauna, and steam shower.
Size up to 170 sqm, that’s plenty for us. It doesn’t have to have a basement, which would cost about ~70k extra.
------------
Now there are two possible options for me if such a project is basically possible for me:
1. Keep the first condominium and do full financing, allocating 700 EUR per month as the bank installment. I’m already paying 550 EUR cold + 400 EUR from my girlfriend = 1,650 EUR for the bank.
The catch: If my girlfriend ever stops liking me or the tenant moves out (however, the apartment is right near Munich, with over 100k new residents expected by 2030), there could be interruptions and then I would have to live hand to mouth. But there’s always a risk. I would have to finance 500k fully. The advantage of the first option—if nothing goes wrong in the next 30 years—is that the rental income has brought me an additional 300k and the apartment is still worth 300k. So a possible win-win situation. The downside would be that I would have to finance all consumer stuff (furniture, kitchen, pool, stuff etc., but Segmüller also offers 0% financing for that; however, I would pay nice expensive furniture prices then).
2. Sell the first condominium for up to 350k and use the cash. However, my bank would have to be willing to transfer the land charge registration in the land register to the second purchased apartment. The notary would of course be happy about new earning opportunities. Finance the rest. With 200k for the land and 300k for the house, I would have to finance at least 150-200k. Possibly even 250k. If I take my nearly 2.8k net as a basis, I could be done in about 20-25 years (rough estimate) with a 1k/month installment. Then I would be about 50. The disadvantage: I lose the possible return of a condominium that would also bring me 200-250k in 20-25 years.
What do you think? There is also a third option: continue renting. But I’m currently stuck in a 47 sqm apartment without a balcony or garden. The sun is only there in the morning. We don’t officially live together; she currently pays 550 EUR cold, 660 EUR warm. We switch apartments every week so far.
------------
Children are of course desired at some point but are not yet present. They are already considered in the planning.
------------
In my calculations I rather do not involve my girlfriend because that can change for reasons that cannot be foreseen now. That means: I want to plan and design everything in such a way that I could manage it alone in case of emergency, without having to move into a beer barrel if everything around me collapses. Of course, I myself do not expect this to ever happen. But horses and vomiting and all that
Now one more question to the experts: What would be my financial leeway that would be realistically feasible for me? 500k for land + house? I personally find that extremely much, then everything in the dream must be included. I currently live in a Munich suburb.
Best regards
Markus