Adrian9191
2019-05-02 17:22:13
- #1
Hello everyone and nice that there is such a forum :) I have been reading for a while and now I have the following concern:
Briefly to the point:
My wife and I would like to buy a multi-family house. There are a total of 6 residential units + an undeveloped attic. 5 residential units are currently rented and one apartment is gutted. My wife’s parents would move in with us and presumably rent one apartment – probably the undeveloped one. We would take one ourselves and the rest remain rented for the time being. In the long term, my wife's grandmother and so on should move in as well so that in X > 20 years the whole house will be used as a family house. The apartments were completely renovated between 2007-2014 (except the gutted one). The building's structure is also good. In 4-10 years, the facade and roof will surely need to be renewed. Current purchase price approx. €220,000 excluding broker fee plus 6.5% property transfer tax and 2% land registry + notary approx. €18,700 plus €30,000 for apartment renovation = €268,700 (without equity).
Current situation:
Me, 27 – project manager – €2,700 net – BAföG repayment due in 1.5 years (€8,500) – no other debts or loans; annual bonus approx. €5,000 net increasing
Wife, 24 – midwife – currently on parental leave approx. €600 net, previously in training, afterwards approx. €2,100 net – returning to work at the end of the year – both permanently employed without probation period and 1 child
Apartment cold rent - €700, warm rent - €950, electricity €45 - internet €30 – one car – paid off.
Expenses including taxes, insurance, food, rent, etc. approx. €2,500 (can still be reduced) -> approx. €990 savings per month. – equity due to a larger purchase approx. €20,000 – but a hobby will be sold by the end of this year, either approx. €30,000 or €42,000 additional equity as a result.
Disposable income: currently approx. €990 + €700 current cold rent
Monthly NKM: currently approx. €1,850
__________________________________________________________________________________________________________________________________________
There are currently 2 options to choose from:
1) Incidental costs covered by equity + use of equity from hobby sale = total €45,000 equity --> Loan €223,700
Ing-Diba
Loan amount €173,700 – 15 years fixed interest period – 1.65% nominal interest rate – 1.69% effective annual interest rate (price indication regulation)
KFW 124 €50,000 – 10 years fixed interest period – 1.20% nominal interest rate – 1.21% effective annual interest rate (price indication regulation)
--> monthly rate 1st year €795.46, 2nd year €990.82 – repayment 3.5%, KfW 4.69%
Special repayment up to 5% annually free of charge possible (which we would certainly use almost annually), 2 free changes of repayment rate partial loan,
Remaining debt €102,559.50
2) Incidental costs covered by equity and no further equity --> full financing --> Loan €250,000
Deutsche Bank:
Loan amount €207,500 – 15 years fixed interest period – 2.03% nominal interest rate – 2.07% effective annual interest rate (price indication regulation)
KfW 124 €42,500 – 10 years fixed interest period – 0.95% nominal interest rate – 0.98% effective annual interest rate (price indication regulation)
--> monthly rate 1st year €903.42, 2nd year €1,073.58 – repayment 3.0%, KfW 4.80%
Special repayment up to 5% annually free of charge possible (which we would certainly use almost annually),
Remaining debt €125,972.08
__________________________________________________________________________________________________________________________________________
I would like to use the special repayment regularly. In the coming years, inheritances, etc., may occur. I would like to avoid the follow-up financing and have paid off by then. I consider this quite realistic.
What do you think of the plan? Thanks for your effort and assessments :)
Thank you very much.
Briefly to the point:
My wife and I would like to buy a multi-family house. There are a total of 6 residential units + an undeveloped attic. 5 residential units are currently rented and one apartment is gutted. My wife’s parents would move in with us and presumably rent one apartment – probably the undeveloped one. We would take one ourselves and the rest remain rented for the time being. In the long term, my wife's grandmother and so on should move in as well so that in X > 20 years the whole house will be used as a family house. The apartments were completely renovated between 2007-2014 (except the gutted one). The building's structure is also good. In 4-10 years, the facade and roof will surely need to be renewed. Current purchase price approx. €220,000 excluding broker fee plus 6.5% property transfer tax and 2% land registry + notary approx. €18,700 plus €30,000 for apartment renovation = €268,700 (without equity).
Current situation:
Me, 27 – project manager – €2,700 net – BAföG repayment due in 1.5 years (€8,500) – no other debts or loans; annual bonus approx. €5,000 net increasing
Wife, 24 – midwife – currently on parental leave approx. €600 net, previously in training, afterwards approx. €2,100 net – returning to work at the end of the year – both permanently employed without probation period and 1 child
Apartment cold rent - €700, warm rent - €950, electricity €45 - internet €30 – one car – paid off.
Expenses including taxes, insurance, food, rent, etc. approx. €2,500 (can still be reduced) -> approx. €990 savings per month. – equity due to a larger purchase approx. €20,000 – but a hobby will be sold by the end of this year, either approx. €30,000 or €42,000 additional equity as a result.
Disposable income: currently approx. €990 + €700 current cold rent
Monthly NKM: currently approx. €1,850
__________________________________________________________________________________________________________________________________________
There are currently 2 options to choose from:
1) Incidental costs covered by equity + use of equity from hobby sale = total €45,000 equity --> Loan €223,700
Ing-Diba
Loan amount €173,700 – 15 years fixed interest period – 1.65% nominal interest rate – 1.69% effective annual interest rate (price indication regulation)
KFW 124 €50,000 – 10 years fixed interest period – 1.20% nominal interest rate – 1.21% effective annual interest rate (price indication regulation)
--> monthly rate 1st year €795.46, 2nd year €990.82 – repayment 3.5%, KfW 4.69%
Special repayment up to 5% annually free of charge possible (which we would certainly use almost annually), 2 free changes of repayment rate partial loan,
Remaining debt €102,559.50
2) Incidental costs covered by equity and no further equity --> full financing --> Loan €250,000
Deutsche Bank:
Loan amount €207,500 – 15 years fixed interest period – 2.03% nominal interest rate – 2.07% effective annual interest rate (price indication regulation)
KfW 124 €42,500 – 10 years fixed interest period – 0.95% nominal interest rate – 0.98% effective annual interest rate (price indication regulation)
--> monthly rate 1st year €903.42, 2nd year €1,073.58 – repayment 3.0%, KfW 4.80%
Special repayment up to 5% annually free of charge possible (which we would certainly use almost annually),
Remaining debt €125,972.08
__________________________________________________________________________________________________________________________________________
I would like to use the special repayment regularly. In the coming years, inheritances, etc., may occur. I would like to avoid the follow-up financing and have paid off by then. I consider this quite realistic.
What do you think of the plan? Thanks for your effort and assessments :)
Thank you very much.