ᐅ Bought a house but have absolutely no knowledge about the subject.
Created on: 3 Jan 2019 11:28
A
AgeoffallA
Ageoffall3 Jan 2019 11:28Hello everyone,
In May 2018, I bought my parents’ house because they were getting divorced, and the house was the only point of dispute. My father wanted to continue living there, and my mother wanted to be paid out. In the end, I agreed to buy the house.
The house has a market value of 250,000 and I paid my mother 115,000. My father retained a right of residence.
I took out a loan of 115,000 for the house and another loan of 50,000 to refinance old debts (15,000 — my lifestyle was quite extravagant), for renovations (30,000), and other costs (5,000).
My net monthly income is about 2,000. I repay both loans together with a total monthly payment of 710€.
After the purchase was finalized, I felt pretty much left on my own. I tried to inform myself about the essentials and, of course, studied all the contracts, which I understood for the most part.
However, after refinancing my old debts, I more or less just let things run without thinking much about it. Recently, the bank “kindly” reminded me (penalty interest) that I really should start using the renovation loan.
But I have no idea how to best coordinate a renovation. Last year, I contacted the general contractor who built the house. He came, took notes, but then stopped responding (that was in September 2018).
Whenever I ask my parents questions, I get nowhere. My mother doesn’t want anything to do with it, and my father always says, “No idea, you’ll have to wait.”
I also have no understanding of the utility bill accounting—when, how, and how often payments are deducted. I only know that payments are deducted and roughly how much, as this has already happened.
I am at a loss and don’t know how to proceed or what to do. I hope this post is not too confusing.
Thank you all.
Julian
In May 2018, I bought my parents’ house because they were getting divorced, and the house was the only point of dispute. My father wanted to continue living there, and my mother wanted to be paid out. In the end, I agreed to buy the house.
The house has a market value of 250,000 and I paid my mother 115,000. My father retained a right of residence.
I took out a loan of 115,000 for the house and another loan of 50,000 to refinance old debts (15,000 — my lifestyle was quite extravagant), for renovations (30,000), and other costs (5,000).
My net monthly income is about 2,000. I repay both loans together with a total monthly payment of 710€.
After the purchase was finalized, I felt pretty much left on my own. I tried to inform myself about the essentials and, of course, studied all the contracts, which I understood for the most part.
However, after refinancing my old debts, I more or less just let things run without thinking much about it. Recently, the bank “kindly” reminded me (penalty interest) that I really should start using the renovation loan.
But I have no idea how to best coordinate a renovation. Last year, I contacted the general contractor who built the house. He came, took notes, but then stopped responding (that was in September 2018).
Whenever I ask my parents questions, I get nowhere. My mother doesn’t want anything to do with it, and my father always says, “No idea, you’ll have to wait.”
I also have no understanding of the utility bill accounting—when, how, and how often payments are deducted. I only know that payments are deducted and roughly how much, as this has already happened.
I am at a loss and don’t know how to proceed or what to do. I hope this post is not too confusing.
Thank you all.
Julian
Get an overview of all existing contracts and insurance policies! Also include tax assessments or similar documents.
Some payments will likely be withdrawn monthly, others quarterly or even annually. However, I’m curious which account these are withdrawn from if you haven’t dealt with this so far?
How is the (financial) relationship with your father arranged? What does he pay for, and what do you cover?
Do you plan to move into the house, or is your father the only resident?
Also clarify which contracts are still in your father’s name but should now be transferred to you! Have the relevant contracts rewritten if necessary or take out new ones, and use this opportunity to check which insurances are missing or unnecessary.
A lot of paperwork, but unfortunately no one can do this for you.
Some payments will likely be withdrawn monthly, others quarterly or even annually. However, I’m curious which account these are withdrawn from if you haven’t dealt with this so far?
How is the (financial) relationship with your father arranged? What does he pay for, and what do you cover?
Do you plan to move into the house, or is your father the only resident?
Also clarify which contracts are still in your father’s name but should now be transferred to you! Have the relevant contracts rewritten if necessary or take out new ones, and use this opportunity to check which insurances are missing or unnecessary.
A lot of paperwork, but unfortunately no one can do this for you.
Pretty selfish of the two.
The market value is 250,000. For how much did you buy the house?
Who is listed in the land register now? Also the right of residence?
Yes, and what do you gain from the right of residence? A father who has a lifelong right to live in your house and doesn’t pay any rent? Don’t say that.
The market value is 250,000. For how much did you buy the house?
Who is listed in the land register now? Also the right of residence?
Yes, and what do you gain from the right of residence? A father who has a lifelong right to live in your house and doesn’t pay any rent? Don’t say that.
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Ageoffall3 Jan 2019 12:03Thank you for your replies 🙂
My father does not pay rent.
The notarized contract states that the utility costs are to be shared.
However, he currently covers the electricity, groceries, and fuel. This roughly balances out.
In the end, I was faced with a fait accompli. My father went to the local authority on his own and had the water and waste disposal accounts transferred to my name. At some point, I simply received the assessment notice and had no choice but to pay it.
There is apparently a building fire insurance that my father still pays for, but no one could or wanted to provide me with more details. When I ask about contracts, the only answers are vague like "somewhere" or "I'll look into it eventually."
I live with my father in the house, and my fiancée will move in during the year. There is no clear spatial division according to the contract, as I rely on a verbal promise that my father will move to the upper floor when my fiancée moves in. Even though I now doubt that this move to the upper floor will go smoothly.
I’m not afraid of paperwork, but I don’t know where the old contracts are, and no one talks about it.
I bought the house for 115,000.
The land registry lists the bank, myself, and the right of residence.
Because of the right of residence, I only had to pay 115,000. Nothing more.
My father does not pay rent.
The notarized contract states that the utility costs are to be shared.
However, he currently covers the electricity, groceries, and fuel. This roughly balances out.
In the end, I was faced with a fait accompli. My father went to the local authority on his own and had the water and waste disposal accounts transferred to my name. At some point, I simply received the assessment notice and had no choice but to pay it.
There is apparently a building fire insurance that my father still pays for, but no one could or wanted to provide me with more details. When I ask about contracts, the only answers are vague like "somewhere" or "I'll look into it eventually."
I live with my father in the house, and my fiancée will move in during the year. There is no clear spatial division according to the contract, as I rely on a verbal promise that my father will move to the upper floor when my fiancée moves in. Even though I now doubt that this move to the upper floor will go smoothly.
I’m not afraid of paperwork, but I don’t know where the old contracts are, and no one talks about it.
I bought the house for 115,000.
The land registry lists the bank, myself, and the right of residence.
Because of the right of residence, I only had to pay 115,000. Nothing more.