ᐅ Bought a house but have absolutely no knowledge about the subject.
Created on: 3 Jan 2019 11:28
A
Ageoffall
Hello 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
When purchasing, you have a special right to cancel with all insurance companies.
So, if you want to "clean up" your contracts, you can transfer everything to your name.
I would recommend that you put everything in your name and then share it with him through a clear billing arrangement.
Maybe you should also assign a specific apartment to him. For example, consider dividing the apartments and assigning one to him permanently.
So, if you want to "clean up" your contracts, you can transfer everything to your name.
I would recommend that you put everything in your name and then share it with him through a clear billing arrangement.
Maybe you should also assign a specific apartment to him. For example, consider dividing the apartments and assigning one to him permanently.
montessalet3 Jan 2019 12:51Strange case. If the house is valued at 250k, the right of residence must be deducted from that—and it adds up! A person can live a long time… So the average lifespan should be taken into account. Then a capitalized rent over all those years. This would certainly result in a value well below 200k. This calculated value should be applied.
That your mother then has her divorce-related dispute with your father is none of your concern: That’s why it was already a huge mistake to pay your mother 115k. Sorry: You really didn’t think that through. And as always with real estate: never let yourself be pressured.
One option would have been to establish, for example, a gratuitous right of residence for 1 or 2 years (if any at all), and then set a rent (including a defined index). As it is now, you’re the one who lost out—doesn’t help you much, I know. What did the notary say? They are required to inform you of the consequences, aren’t they?
That your mother then has her divorce-related dispute with your father is none of your concern: That’s why it was already a huge mistake to pay your mother 115k. Sorry: You really didn’t think that through. And as always with real estate: never let yourself be pressured.
One option would have been to establish, for example, a gratuitous right of residence for 1 or 2 years (if any at all), and then set a rent (including a defined index). As it is now, you’re the one who lost out—doesn’t help you much, I know. What did the notary say? They are required to inform you of the consequences, aren’t they?
M
Mottenhausen3 Jan 2019 13:08montessalet schrieb:
Your parents’ divorce-related issues should not concern you: paying your mother 115k was already a huge mistake. Reason: The parents were probably 50:50 owners.
The original poster purchased the house for a price of 115k plus the father’s right of residence registered in the land register.
That the 115,000 euros then only went to the mother does not matter to him; that is really a divorce matter between the parents.
The right of residence therefore has a value of 135k euros, depending on the father’s age, this corresponds to a net rent of 350 – 600 euros per month for the rest of his life. Yes, the father lives relatively cheaply, but that is not uncommon with intra-family rentals. Because ultimately, the “saved” rent counts as inheritance or is saved for future care costs, which may relieve the son.
But that does not matter now, he wants to spend his 30k renovation loan and does not know where to begin: roof, windows, heating, plumbing, electrical, flooring… either the bare minimum everywhere or one or two areas fully and properly. Consult a building surveyor who can best identify the real problems. A construction company will first suggest what will earn them the most money, but not necessarily what is essential for maintenance or makes sense energetically, etc.
Regarding contracts: call utility providers, insurers, etc., explain the house purchase and that the seller is not providing documents. They usually send everything again (possibly for a fee).
Before you invest money in renovation, I would honestly make sure that the right to reside recorded in the land register is limited to individual rooms – if the father currently has a right to live in the whole house, you can’t force him to move to the first floor! And the father should actually move. Only then would I consider spending money on the house once the living arrangements are settled.
I would spend the money on creating two separate living units!
This is not ill will towards the father, but since you want to get married and start your own family, I believe clear boundaries are necessary. I would establish those before your fiancée moves in or any money is invested.
And whatever you do: keep your girlfriend financially uninvolved. You can agree with her on a rental contract if you want, but she should definitely not sign any additional loans or similar agreements.
I would spend the money on creating two separate living units!
This is not ill will towards the father, but since you want to get married and start your own family, I believe clear boundaries are necessary. I would establish those before your fiancée moves in or any money is invested.
And whatever you do: keep your girlfriend financially uninvolved. You can agree with her on a rental contract if you want, but she should definitely not sign any additional loans or similar agreements.
H
HilfeHilfe3 Jan 2019 13:30Hello, your father will get in touch as soon as a charge appears on his account.
