Small techniques of inheritance into the amount of financing?

2021-10-23 11:18:02

That's true, we would also be willing to do that.
Yes, I still have a bonus of a not insignificant amount. But despite the house, we do not want to restrict our very high standard of living (we spend about €900 on groceries per month and sometimes spontaneously go away for 2 days for €800). It's not important enough for us.

Even an "alleged high earner" cannot (should not) spend more than he has in the long run.

2021-10-23 11:37:55

Ask the banks what they say. Even if the inheritance does not come, you can, if all else fails, sell the house in 20 years to pay off the debts, or liquidate the stock portfolio. Maybe at a loss, but it reduces the remaining debt. I don't see a real risk here. Of course, it is a bit of a gamble. However, money seems to be available in reserve, and therefore I would take the small risk. If you don't have one thing, it is infinite time. Enjoy life now and try to retire as early as possible. If the house still fits into that, then do it. If not, then not.

2021-10-23 12:03:15

The question from the OP was whether one can look at higher-value properties due to the inheritance expectation / 1% repayment, i.e. over €600,000, towards €700,000 and even higher… -> ideally, just have a financing consultation. Then you also hear from the expert where the limits are, even with low repayments. However, one should clearly consider how this approach fits into the "high earner" mindset. There is too much wishful thinking involved.

2021-10-24 20:46:40

so here is something I would like to throw out there:
Your parents can’t transfer the house to you yet? OK, no problem, whatever the reason.
BUT
probably the house is already paid off?
would it be possible to mortgage it?

i.e. you take out a loan of 150,000-200,000€ in your name, using your parents’ house as collateral.

this way you would have 150,000-200,000€ more equity. That’s what you have in addition to the saved 80,000€.

so if you find a suitable property for 600,000-800,000€, you only finance 80%

thus you quickly get a lower interest rate by around 0,x%, over time you can save a lot of money, especially with these amounts.

PS. for both loans it would also not be a problem to do a 1% repayment. But with relaxed interest rates, I’d rather choose a 20-year fixed interest period... maybe there is already something “inherited” and thus be completely “debt-free” in 20 years

PS2. Feel free to contact me if you need more info etc.

2021-10-25 09:02:05

One more thing about the Berliner Testament. You only inherit if both have died. and that can also happen when your house is already paid off. Dividing your money into stocks and savings rate for the house is mental accounting, you only have one fortune.

2021-10-25 13:37:19

so here’s something I’d throw out there:
Your parents can’t transfer the house to you yet? OK, no problem, whatever the reason.
BUT
the house is probably already paid off?
would it be possible to mortgage it?

i.e. you take out, for example, a €150,000-200,000 loan in your name, using your parents’ house as collateral.

that way you’d have €150,000-200,000 more equity. That’s in addition to the €80,000 you’ve saved.

so if you find a suitable property for €600,000-800,000, you’d only finance 80% of that.

this way you quickly get a slightly lower interest rate, and in the long run you can save a lot of money, especially with amounts like those.

PS. it wouldn’t be a problem to have 1% repayment on both loans. But with relaxed interest rates, I’d rather choose a 20-year fixed interest period… maybe there’s already something "inherited" and thus be completely "debt-free" in 20 years.

PS2. Feel free to reach out if you need more info etc.

That won’t work. I interpret from the OP’s replies that they suffer from dementia. A court would have to approve the mortgage and it won’t do so.
If I’ve misinterpreted that, then sorry.

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Small techniques of inheritance into the amount of financing?

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