iowa84
2016-09-16 09:00:17
- #1
It’s not just renovation, but also conversion/extension. From 155 m² now to 230 m² then, meaning 75 m² new. Roughly 75 m² x 1500 Euro/m², that’s already 115,000 Euro. Anyway...
The overall family situation and possible tax issues should be considered:
- Transfer of the house,
- Later payment of a (customary?) rent from the parents to the child,
- Other children, relatives, additional assets.
With 4500 Euro/net, I don’t see any problem financing 280,000 Euro. The bank will closely examine the mortgage lending value (which is always somewhat more complicated with conversion/renovation than with new construction), but it probably won’t fail due to solvency.
With such projects, something unforeseen will always happen. I would therefore want to borrow as much money as possible (so 280,000 Euro) to have as much buffer as possible. Even if the interest rate is a bit worse. If things go well, you can repay extra quickly; if things go badly, you’ll be glad to have money without needing additional financing.
And then it might make sense to handle financing questions and construction questions in separate threads :rolleyes:.
Hi,
yes, somehow this has drifted a bit :-) If more questions come up, I’ll start a separate thread!
So, back to the topic: I was already planning with the full 280,000 EUR and not 280k minus my own equity.
As mentioned at the beginning, I first needed a financial reference point and therefore went to the house bank. So I could at least have an idea of what kind of rate I’d approximately expect. Of course, as soon as everything else is clear and final, we will obtain several offers.
I will go over all the tax issues with a friend. He works at the tax office and always helps me with this. Nevertheless, I might also go directly to a tax advisor and clarify everything. It’s better to have a second opinion about it.