What conditions are possible? Capital investment; 6 apartments

Hello everyone. I would like to finance a multi-family house with my father and my brother. 6 apartments, 360 m² living space, annual net rent €29,000. The purchase price is €490,000 + 6.5% buying incidental costs. Total sum €521,850. Together we have about €15,000 / month net and plan with €6,500 / month for interest and repayment rates. What interest rate can we expect? 10% special repayment per year and variable repayment rates are conditions. A calculation for 5, 8 and 10 years fixed interest period would be interesting. We are not quite sure yet how much equity we want to contribute. Currently, a loan of €350,000 or €450,000 is being considered. Collateral: Paid-off residential house (approx. €300,000), paid-off multi-family house (net rent approx. €10,000 / year), life insurance, stocks, cash... Regards Zebi

The condition for this can only be given to you by a bank :) But why do you want to repay so much?

So that we quickly get something from the rents. Or am I mistaken there?

Hello Zebi,

probably no one here will be able to adequately answer this question for you. You should primarily contact your Hausbank (they know you best) and, for a comparison of terms, also consult a Finanzmakler.

Regarding the amount of repayment, nordanney probably referred to the possibility of tax deductibility of interest expenses for non-owner-occupied (i.e., rented) properties. For this, too, please refer to your Steuerberater, who will clarify this for you.

However, you should be aware that the tax advisor often primarily advises based on how you can pay less tax (which is their job). In doing so, the liquidity of the buyer/borrower is often neglected. Therefore, after initial individual discussions, a collaboration between tax advisor and financial broker would be advisable.

Thank you for your answers! But isn’t it basically sensible to pay off quickly? Once the thing is paid off, we’ll just look for something new

Thanks for your answers! But isn't it basically sensible to repay quickly? Once this thing is paid off, we'll just look for something new

That is probably true, but for every euro you earn, you also have to pay your share to the tax office within the framework of your tax return. If you have high interest expenses, this reduces your tax burden ==> definitely ask the tax advisor before the financing talks. After all, you already earn good money and will have a high top tax rate.