Should we buy an overpriced property?

  • Erstellt am 2021-06-23 11:32:12

Zaba12

2021-06-23 12:25:40
  • #1

You must not worry about the lending value at all; otherwise, you will start doubting the whole topic of building/buying a house. Land from the city and still the unsecured portion of the loan was over €70k, even with €100k equity. There was no item not assigned to the house construction. If you now assume that others build on market-value usual plots… manoman.
 

Acof1978

2021-06-23 12:26:01
  • #2
So, it means don't wait but grab it :-)
 

Tamstar

2021-06-23 12:28:47
  • #3
We also just bought overpriced (but I don't have a percentage at hand).

Does it annoy me to have paid too much? Yes, because a lot was just botched and the previous owner was generously rewarded for it.
Does it annoy me THAT we bought? No, because: We have a house! We are going to make it nice now, and as the botched work is gradually fixed, the annoyance will fade.

We actually didn't even negotiate the price because we had gotten burned too many times by doing so (negotiating too long, negotiating at all, we just kept getting outmaneuvered). We had them do some work (cleaning and painting the facade), but nothing more.

Unfortunately, we had an agent. I'm annoyed about that too, €15,000 for nothing. At least you can save that!
 

nordanney

2021-06-23 12:42:11
  • #4
Anecdote from my usual financing routine. New construction multi-family house in a good location ==> lending value corresponds to 16 times the annual rent. Construction costs are maybe at 23-25 times the annual rent. Market value at 35 times the annual rent. 100% financing when buying = 55% equity required + additional purchase costs from equity. The valuation in the simple single-family house sector is quite manageable.
 

Acof1978

2021-06-23 12:43:05
  • #5


Realtor, one of the most useless jobs ever :-)
 

cschiko

2021-06-23 12:50:16
  • #6
Basically, you are saying it yourself: if you know that there are significantly more interested parties and you even think they would pay more => then the house is simply not overpriced! The bank's assessment is just conservative, which it has to be. If everything fits for you, then you probably shouldn't wait too long. Alternatively, you can ask the [Gutachterausschuss für Grundstückswerte] for information from the purchase price collection. If there have been comparable sales, you can see what was paid. However, this takes time!
 

Similar topics
28.03.2011Can we afford to build a house without equity?14
20.07.2011House construction: Equity / incidental construction costs realistic?14
30.04.2012No equity, good income, financing feasible?22
19.03.2013General questions about equity and construction costs10
20.06.2013Problems with equity - real estate purchase15
29.08.2013Calculate equity and financing12
21.08.2014Is financing without equity realistic?19
05.10.2014Building a house without equity26
27.10.2014Fixed interest rate financing without equity?20
16.01.2015Is financing possible with my own equity?19
18.02.2015How much equity is used when purchasing land?13
21.02.2015Impacts on loan when equity is in property17
18.03.2015Buying property feasible - Loan with building savings as equity?12
06.04.2015Is construction financing possible with our own capital?12
22.06.2015Land price = complete equity. Finance yes/no?13
22.07.2015Is it possible to build a house with little equity?16
02.02.2016It doesn't work without equity - experience!109
10.09.2015Is building a house feasible with this equity and net income?12
18.02.2016Collateral value & equity11
23.01.2017Questions about the calculation of equity / assessment of incidental purchase costs11

Oben