ᐅ Extension and Renovation of the Family Home – Is It Realistic?
Created on: 18 Apr 2020 20:33
P
PHAlina243
Hello everyone,
We are currently seriously considering and planning to take over my parents’ house (built in 2001) and extend it with an addition for my parents.
We are quite uncertain about many points:
- My parents are thinking of transferring the house to us as a gift. I have two siblings—both already own property; one sister lives right next door in my mother’s parents’ house. Both siblings would waive their “mandatory share” in the case of a house transfer. We would pay them both €50,000 (approx. $54,000) each after agreement.
- What financial costs should we expect for the extension? Development plans are available. The size of the extension would be about 80 sqm (860 sq ft). The main house is 120 sqm (1,290 sq ft), where we would like to carry out some renovations—windows, floors, etc. We have roughly budgeted €50,000 (approx. $54,000) for this.
Regarding financing: We are considering a loan of €200,000 to €250,000 (approx. $215,000 to $270,000).
My partner and I both have full-time jobs and have about €4,500 (approx. $4,850) available monthly. So far, we pay €900 (approx. $970) in rent including utilities and manage well financially.
We do not have any cash equity—we are still quite young and have been working full-time for only 1.5 years. However, we would undertake all work ourselves except for the structural shell and heating installation.
There are currently no existing loans.
Under these circumstances, is it “realistic” to start more detailed planning?
Thank you very much and best regards
We are currently seriously considering and planning to take over my parents’ house (built in 2001) and extend it with an addition for my parents.
We are quite uncertain about many points:
- My parents are thinking of transferring the house to us as a gift. I have two siblings—both already own property; one sister lives right next door in my mother’s parents’ house. Both siblings would waive their “mandatory share” in the case of a house transfer. We would pay them both €50,000 (approx. $54,000) each after agreement.
- What financial costs should we expect for the extension? Development plans are available. The size of the extension would be about 80 sqm (860 sq ft). The main house is 120 sqm (1,290 sq ft), where we would like to carry out some renovations—windows, floors, etc. We have roughly budgeted €50,000 (approx. $54,000) for this.
Regarding financing: We are considering a loan of €200,000 to €250,000 (approx. $215,000 to $270,000).
My partner and I both have full-time jobs and have about €4,500 (approx. $4,850) available monthly. So far, we pay €900 (approx. $970) in rent including utilities and manage well financially.
We do not have any cash equity—we are still quite young and have been working full-time for only 1.5 years. However, we would undertake all work ourselves except for the structural shell and heating installation.
There are currently no existing loans.
Under these circumstances, is it “realistic” to start more detailed planning?
Thank you very much and best regards
Did you recently have a similar thread that you deleted? – currently, I can only find this one from you, but I seem to recall a similar question and your username (?)
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
P
PHAlina24319 Apr 2020 21:1011ant schrieb:
Did you recently have a similar thread and delete it? – currently, I only find this one from you, but I think I remember a similar question and your username (?) No, this is the first one. I’m just getting started.
Alright, let’s focus on this thread. To summarize: (1) There is a parental property. (2) The property has a house built on it, which the parents are supposed to vacate in exchange for the creation of an extension. (3) This "retirement cottage" extension is assumed here to be legally permissible to add on this property. (4) The neighboring property has the grandparents’ house, which is already occupied by one sibling. (5) You also have another sibling. (7) Any arrangements between you, the sibling next door, and the third sibling when the sibling moved into the grandparents’ house were not mentioned and/or are not relevant to the current discussion. (8) We also do not know whether the sibling has already been transferred ownership of the mentioned house or is simply living there. (9) The spouses of you and the sibling next door, as well as the corresponding marital property regimes, remain unknown to the other participants in the discussion. (10) Also unknown are the ages of the individuals/generations mentioned, and (11) the planned inheritance arrangements between the parents.
From this position, it is still too unclear for me whether, for example, the proposal of a real estate (development) company among the current and future property users, the third sibling, and possibly other parties involved in future inheritance situations makes sense. Fundamentally, I consider shares in a company easier to transfer in portions that fit gift tax exemptions than real estate itself. From all perspectives, it also seems sensible not to make the new retirement cottage residential unit a separate entry in the land register but merely to specify residential rights on it.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
From this position, it is still too unclear for me whether, for example, the proposal of a real estate (development) company among the current and future property users, the third sibling, and possibly other parties involved in future inheritance situations makes sense. Fundamentally, I consider shares in a company easier to transfer in portions that fit gift tax exemptions than real estate itself. From all perspectives, it also seems sensible not to make the new retirement cottage residential unit a separate entry in the land register but merely to specify residential rights on it.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
Similar topics