Purchase opportunity single-family house from the 80s - risk?!

  • Erstellt am 2022-10-17 11:37:43

Alibert87

2022-10-24 20:52:47
  • #1
Small update: we have now been with the [Gutachter]. The house is solid, no glaring defects. 2 windows need to be replaced, [Dämmung Dachboden], inspection for asbestos "Schinteln" (Is that what they are called?!), the chimney probably cannot be used as is anymore (exhaust values possibly too high), one bathroom (relatively large) needs renovation, upstairs all floors need to be redone and painted, [UH] everywhere dark tiles - something needs to go over them that is compatible with the underfloor heating. The heating system probably needs maintenance (but after about 15 years it might break down). Next step: negotiate the price with the seller and hope I don't scare him off.
 

Alibert87

2022-10-25 11:43:57
  • #2
I didn’t want to open a separate topic for this – it’s now about the financing:

Purchase: 510-540 KEuro (that is our range, or rather the negotiation margin)
Additional costs: approx. 35KEuro
Modernization incl. kitchen: 80-100KEuro

Equity:
Cash: 60KEuro
Stock portfolio: 50KEuro
Building savings contract: 60KEuro (30 saved, 30 overdraft loan)
Loan from parents: 30KEuro (whether we will use this, I don’t know yet)
Household income: Until approx. Feb. 2023 – 5500Euro (wife on single income), from Feb./March 5800, from Aug./Sep. 6300 Euro (Christmas bonus, vacation pay and bonus not considered)
(There are currently two developments regarding our salaries for next year, but they are not yet certain)

Since we currently rent, we find it difficult to handle such a high monthly burden. Purely from the household calculation it would be possible, but is it healthy, or do you as a property buyer have to get through the first years like that?! Approximately we would have a loan/income ratio of about 40%

What to do?!
 

HnghusBY

2022-10-25 11:52:25
  • #3
What is the financing offer from the bank, that is, which installment(s) will you have to pay?
 

Alibert87

2022-10-25 11:59:01
  • #4


Appointment is still pending. But with the current interest rate situation (about 4.2%, 15-20 fixed term, 1-2% repayment) it will settle at about 2500 euros.
 

Alibert87

2022-10-26 10:42:03
  • #5


Maybe someone can contribute a few critical words about our financing situation .. thanks
 

mayglow

2022-10-27 16:42:24
  • #6
Do you think the renovation costs are enough as they are? I can't really judge, but the items listed above don’t sound that minimal to me either, and if the 100k also includes the kitchen?? But honestly, I don’t know.

Check the building savings contract to see what the rate is for repaying the loan. The interest rates there are probably lower than what you’re currently getting elsewhere, but they often have higher repayments built in, so the rate often isn’t easy to handle anyway. Here, it only accounts for a smaller loan amount, but my point was, don’t forget the rate in your household budget.

Overall, I find this hard to assess right now; I would probably have it calculated with a few different scenarios and see what you end up with. And otherwise, do a current household statement for yourselves as well / analyze what you spent how much money on, how much you saved. E.g., if you currently had 400€ rent and saved 500€ every month and the rest was wasted, then I consider a 2500€ rate to be suicide. So: honestly look at the last year, how much did you spend on what and how much did you save. Don’t just dismiss all special expenses as “yeah, that was only this year!” (yes, most people don’t buy a new car or go on a world trip every year, but there’s always something) and then see whether the rate would work for you.

Edit: In the mortgage financing area, there is a questionnaire that is supposed to help with the assessment, maybe you can at least fill it out for yourselves
 

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