Purchase advice / Financial evaluation - 1950s house with attractive plot

Buying only part of the property will not make sense, because then the access to the rear part will run directly past the house and then you still have to drive around a 90-degree corner. The garages would then have to be demolished because they are in the way. Where would you park then? You would then have to create parking space for 2 houses at the back of the property, which would significantly affect the beautiful garden view.
Privacy would remain only on the terrace side, but that’s where the new house would stand (at least with a distance given the size of the property). Do you want that?
Apart from that, it is not clear whether the development plan even allows this (all the neighbors have no rear development).

Then you have to leave it.
In the current situation, with the unfortunately rather tight budget, buying an old house with a huge plot for the price doesn’t make sense.

Even if I assume an affordable 250 EUR/m², the plot alone costs 400,000 EUR.
If you buy only half, you’ve already saved (at least) 200,000 EUR for renovations, etc.

@HausKaufBayern is there any update from you on this?

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Yes, we have looked at the house. We still like it very much. The tenants seem very nice to us at first and second glance. We will soon sit down for coffee and discuss potential details in advance and get to know each other better. The house is in good condition, but the bathroom would need to be redesigned (layout) fairly soon; we are planning reserves for that. The roof still looks unexpectedly good, everything is dry, nothing rotting. Insulation was already present in the attic, but not between the tiles, rather on the floor.

In the meantime, there has also been an unexpected increase in salary. A 6% raise really eases the whole calculation, as it means over €250 more net per month. Therefore, we have now submitted an indicative offer on the condition that we have another expert review it and find no new issues.

I will keep you updated whether it works out or not – the whole process will take a while since the sellers will probably take a Christmas break first.

Thank you for the quick response. Have you been given the current heating costs? I think you have not included enough of that in your cost breakdown.

Hello,

there is good news.

The appointment with the building surveyor went very well, no major backlog of renovations, something has been done over the years. For the age, the building fabric is in good condition. The roof is sensibly due for renewal as expected, but not urgent (about 10 years time).
The financing was approved during the week and the notary appointment is on Monday.
We were able to negotiate on the purchase price, so we ended up at €720,000 without additional purchase costs. We think we have made a fair deal for both sides (buyer and seller). The future tenants are extremely nice and accommodating, we get along very well. Win-win.

In case anyone is interested:
- Financing amount €500,000 - Loan 1: approx. €380,000 (rented apartment); Loan 2: approx. €120,000 (owner-occupied apartment)
- Interest rate 3.26%
- Installment €2350
- The costs of the large loan can be claimed for tax purposes as planned -> very worthwhile

On 01.01, there was a promotion that I had expected later. Now we are at €5300 net (man) + €2300 net (woman)

If we maintain our current very frugal lifestyle, I see no problems at all. Even for renovations, enough money should be saved up.

I will continue the thread about what modernizations we plan. We have also kept equity back (currently €60k) which we will now use for enlarging the bathroom and kitchen.

Oh yes: The gas bill for the older couples living in both apartments (80+ years old - older people tend to heat more because they move less) was about €5000 for both apartments together.

Hello, there is good news.

congratulations on the purchase! You really negotiated well. Was it easy and were you the only serious interested parties? With the current purchase price, you have a good financial margin for renovations. The heating costs are high, but initially the tenants still pay, and in the medium term a renovation will pay off. Nice that you want to continue reporting. Renovation projects are always exciting and in the end, if all goes well, you have a nice mature plot and a comfortable house with history.