Multi-generation house construction financing

I would look at it from the cost side.

You are buying or financing the land with the bank on the one hand and receiving a loan from your parents. Then you build the house and it initially belongs to you.

You rent out part of the house to your parents. You can deduct the interest on the loan from your parents as well as the operating costs of the house for tax purposes and also claim depreciation. Next year, this is supposed to be doubled. This initially brings tax advantages.

You actually have to clarify it tax-wise and cannot calculate it so generally.

My husband and I have a plot of land ready. We are now planning to build a multi-generational house on it together with my parents. My husband and I are buying the plot and want to finance the outdoor facilities. The house itself and everything else that belongs to it are to be financed by my parents.

That sounds quite convoluted in reverse. Without reading through the entire thread – I don’t have time for that right now – I will give you a hint to a thread where a similarly complicated solution was thoroughly discussed, namely the Pianistenthread: and others that can be found here with the same keyword.

I would also first discuss this with a tax advisor and go through the advantages and disadvantages of the possible options. Whether donation and usufruct, loan to you, or whatever makes sense, must be calculated, also with regard to separation and inheritance cases.

I would also discuss this first and foremost with a tax advisor and go through the pros and cons of the possible options. Whether gift and usufruct, loan to you, or whatever makes sense, it needs to be calculated, also with regard to separation and inheritance cases.

All right, thanks for the information and tips. We have an appointment with a tax advisor and notary, so we will surely find a satisfactory solution. We have also now learned from the bank that there are special financing options for multi-generation house projects. We will receive more detailed advice tomorrow. I will then post the results here, hopefully it will help someone else too :)