Two objects finance

Good evening everyone! I am a civil servant (31 years old) with a net income of about €2200 and intend to acquire a small 1-room condominium (costs about €50000) for later pension enhancement, which I will then rent out. I already have a new build property in sight for this. I probably won't have any problems with renting it out, as I live in a university town, and such apartments are always in demand. Rental income would be about €350 - €400 including additional costs. Since I recently had to afford a new car, I unfortunately have no equity left. That means part of the rental income would initially also be used for financing. The rest I would put aside for any potential costs. Now to the actual problem: Together with my wife, I would also like to build a home in the foreseeable future (in about 2 years), which would also need to be 100% financed. I estimate house + land at about €250000. My wife's income: about €1300 net. Do banks cooperate with such a plan, or can the condominium be taken into account with rental income and value, even though the apartment is still being financed? Thanks in advance for the tips.

Hello tobi 1978,

Regarding the topic of renting, quite a bit has already been said in another thread, just have a look, see:



In my opinion, condominiums are hardly suitable for supplementing pensions. When you retire, the property will be 30 years old, requiring a lot of maintenance, and if it is not rented or the tenant does not pay, you will still have to cover these costs from your pension.

Just ask the bank that is financing your €50,000 what they think about the later house construction. I generally advise against building a house without at least 20% equity, but everyone can do as they please.

Well, a condominium can certainly be interesting for supplementing retirement income, and if reasonable maintenance reserves are formed by the property management, modernizations are also not a problem. However, since rental income, even with possible tax advantages, will hardly be sufficient for interest and amortization, financing both projects will probably be a bit complicated, if not impossible.