New construction with single-family multi-generation house - financing realistic?

  • Erstellt am 2021-04-12 13:28:01

Altai

2021-04-13 06:34:22
  • #1
Without the income of the parents-in-law, the whole plan doesn't work at all. The 3000€ you earn is probably enough to support the family, but not enough to service a 350k€ loan. The bank calculates using its own flat rates and there are five of you. Moreover, the loan amount could increase by 50k€ if the sale of the existing properties yields a lower amount. Is there a prepayment penalty? A 230sqm house for 470k€ could also be challenging. Meanwhile, the tip in the forum is to calculate with 2500€/sqm. Or is that already a concrete offer? But if even says it is financially feasible? I think: only if you consider the income of all the residents. How "sustainable" the bank sees that, especially with the 74-year-old retiree... I can't judge.
 

derBensch

2021-04-13 08:10:08
  • #2
Bank confirmation for the financing is available.

moral towards the siblings - Yes, because it is a joint decision (the family made)
Whether the parents-in-law now pay rent or not - that is still an open question if it makes sense (towards the tax office) as far as I am concerned they don’t have to.
Care will be arranged within the family. We are not that far yet. (it's initially about the question whether the project is feasible)

Regarding the sum of money, I have now updated the costs in the table and inserted more precise data. The house offer is "there". But that includes the part "turnkey 75k".


    [*]Painting work - filling in Q2 -
    [*]Painting work - wallpaper
    [*]Floor coverings
    [*]Wall and floor tiles
    [*]Interior doors
    [*]Sanitary fixtures


We want to carry out some of these works ourselves. Therefore, I think about 15k savings are possible there.
The plot is 10,000 euros cheaper because we get this "discount" due to the 2 children.
For the garage, I have received a new offer. We will probably only take one garage and one carport (then the price changes to 17,000)
(although in the worst case the garage and carport can be omitted at first)

Next point, the bank would take over the loan for the new property for a processing fee. We would not have to pay a prepayment penalty.
Probably not for the parents-in-law’s loan either as in 3 years (amount still approx. 43k) and the fixed interest period expires. In other words, the proceeds of the property are even higher.

We will clarify financing next week - with or without KFW.

 

apokolok

2021-04-13 08:47:31
  • #3
The bank is financing a property where the liquidity primarily depends on the pension of a 74-year-old? I can't quite believe that. How long is the financing supposed to last? Regardless of the finances, I can never understand how two households can voluntarily become so dependent on each other without necessity. Just imagine one or even both parents-in-law becoming so in need of care that you can no longer manage at home. The nursing home costs quickly eat up pension and retirement benefits, and then the house is at risk. The other way around is the same. You become unemployed, boom, then the already not-so-fit parents-in-law end up on the street. Why don't you build your house alone and have the parents-in-law move into a nice rental apartment on the ground floor nearby? Just because the current income wouldn't otherwise be sufficient for the financing? Honestly, such situations make my hair stand on end.
 

Hausbautraum20

2021-04-13 09:01:58
  • #4
Can you really get a house with a granny flat for 470k? We already pay that much and you need at least one more bathroom. Then only 15k is budgeted for the kitchen. That's why the question from someone. That is only enough for one kitchen and not for two kitchens. Then we would need 4 parking spaces. Isn't that the case with you and are they included? As siblings of your wife, I would also find it extremely unfair...
 

pagoni2020

2021-04-13 09:46:21
  • #5

Um....what does that mean? It can only mean that you still build the house even if the parents-in-law decide otherwise, right?

Who exactly is "people"? Does that apply to the so-called "care and maintenance" or also real full-time care (your wife is a nurse)? Then your wife might possibly not work anymore and receive care allowance, which in my opinion would be absolutely right.

Would you please specify that and also WHAT and HOW exactly has been documented?

That is a bit too vague for me as well. Why should they contribute to the loan if the house belongs to you? How big/expensive is their apartment going to be? What is the difference between their own proceeds and their new apartment? Exactly this should also be borne/received by them. If they then still occasionally slip you some cash, that’s fine, but the matter itself must, in my opinion, be much clearer AND independently regulated. If their apartment is not more expensive than their proceeds, they shouldn’t pay rent — why should they? The fact that you nevertheless get something credited by the tax office is, in my opinion, your business; you have the advantage of higher equity for that.

Well...whether it’s morally questionable to be “eager” about that, I don’t know. If someone actually takes on the care/responsibility, then he can also have a big advantage. That’s also how I would see it for myself. Such things can’t be assessed in advance; it can be many beautiful, shared years but also long, difficult times. Nowadays, not many want to take that “risk” anymore, which is why I basically like the approach, but it’s too underdeveloped to me, and the focus prematurely goes to detailed decorative details in the house before binding arrangements about the responsibility/care have been made.

Good, but which decision exactly? Where and how is it fixed? What securities do the parents have concerning residence and care?

...so you have arranged NOTHING about that!!!

That is solely your problem or responsibility as the future homeowner. The tax office will count rent as income taxable for you (for which you also have equity, among other things). Will the parents be granted a right of residence in the land registry if they contribute their equity? Does the bank already know about the right of residence to be registered?

Sorry...for the parents that ultimately means...blah blah...they might be helpless and need SECURITIES!!! when they hand over their possessions to someone; that applies without restriction to children as well. Maybe you just didn’t think about this so far, but YOU MUST arrange this BINDINGLY for the parents.

If you put the second step before the first one, you stumble more often... The bank has already told you that “the project” works. Apparently, however, you haven’t considered and submitted all necessities there. You care about the house and the older generation about the care; BOTH must be clearly regulated. The bank wants securities; why shouldn’t their own parents get them?

Again the question: WHICH one??? What does it concretely include? Who/When/How much/How long? And WHERE is it documented on paper AND later in the land registry?

I always like the basic idea very much – but I usually miss securities for those enabling such a project. That is too cursory for me here as well... on the house side it’s concrete down to the wallpaper.
 

ypg

2021-04-13 15:19:29
  • #6
Leaving aside the fact that my subjective opinion here only sees a financial milking of the seniors, even though, of course, the occasional sacrifice or GiveAway comes out of it (new apartment, proximity to the dear daughter, etc.)

In the worst case, which is quite likely, the care will recoup the gift within 10 years – it will be nothing else. That then means: selling the house so that the €200,000 are available in cash for the care.
 

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