ᐅ Bought a house at a good price. What now?

Jean-Marc schrieb:

It depends on the location. The more attractive it is, the less I would invest financially before reselling. I wouldn’t do too much anyway, since a buyer usually has very different ideas.

The same applies to renting. What is the maximum realistic net rent? If only 5-6 euros per square meter (approximately 0.46-0.56 USD per square foot) are common, a renovation may not be worthwhile. If there is also a restaurant in the building that might be leased out, this can negatively affect tenant interest, as most people prefer peace and quiet.

I would only consider a full renovation if a) I can rent it out well and/or b) plan to move in myself later.

When reselling, you also need to consider capital gains tax, which can apply up to 10 years after purchase.

Thank you for your response. I will research the various questions. Yes, we are also considering moving in there ourselves.

Berenike schrieb:

Yes, he has officially purchased it.

My advice to you is to leave it that way. If he, as you say, likes to take risks (in this case purely gambling), he should do it on his own. You will very likely be very glad one day that you never signed anything related to it.

Berenike schrieb:

The market value is higher according to the appraisal

He should put it back on the market right away and realize that "higher market value" immediately. Even after deducting capital gains tax, he would have a quick profit with no effort.
However, I fear he will soon realize that the "market value" will not be reflected in the current sale price. Do you know how many old pubs, hotels, commercial buildings, and similar so-called junk properties are waiting for buyers somewhere?

Berenike schrieb:

Of course, we don’t know how it will turn out in the end, and yes, profit motive was certainly involved

At a casino, betting on red or black gives you almost a 50% chance to win. As soon as you put money in there without solid planning, your chances are much lower, and it’s possible that a lot of money will be lost—money that you might first have to borrow from the bank for such a project.

Berenike schrieb:

(the father basically renovated the family house almost entirely on his own back then)

...does the father already know about his new job? Sons sometimes have an idealized view of the scope of their father’s renovation work. And... the father can’t do it all alone!
I don’t mean this negatively at all, but I strongly recommend you keep your hands well away from something like this, as you don’t even remotely understand or can influence the consequences.

It’s always amusing how here, without any background knowledge, people immediately make judgments about others instead of simply answering questions.

T_im_Norden schrieb:

It’s always amusing how people here quickly pass judgments about others without any background knowledge instead of simply answering questions.

Feel free to address me directly; I can handle it. Following the saying, "those who can read have an advantage," I did exactly that and understand that a woman is somehow involved in a completely unplanned house purchase (feels involved/is involved) and partly relies on evaluations from acquaintances with “little expertise” regarding a property that apparently nobody wanted to buy before.
Since she is understandably—rightly so—worried or at least seriously considering these concerns, she’s seeking feedback. Mine is honest, and I believe she is capable of accepting that. She probably doesn’t need empty encouragements; after all, they won’t be the ones paying the price later.
Buying such a property with, by her own admission, no experience is, in my opinion, a complete act of recklessness, which is why I would immediately sell it (hopefully at market value).
There are partly experienced homeowners and professionals here; I can’t imagine that any of them would cheer the original poster with a “Well done” or “It’ll be fine,” because they understand the risks from their own long-planned and well-secured housebuilding experience.
Maybe I have seen too many similar cases that mostly ended in chaos; with this completely unprepared project, all possible warning bells are ringing for me.
That is the point I want to make and to encourage the original poster to seriously reconsider.
@Berenike It was not my intention to judge you or anything; based on many professional experiences, I simply wanted to clearly state that you should definitely let your partner take this gamble alone—because that’s what I believe it is. Sorry if it came across differently to you; in that case, I apologize.
@T_im_Norden I think the facts presented by the original poster are clear enough; nevertheless, thank you for your frank advice!

Crazy story. I hope your friend has the necessary savings and income. Just don’t take out a loan for him or sign anything.

@Berenike would you like to upload some photos?

P.S. A quick note about the pub. There is a reason why it is no longer leased. Pubs and similar establishments are often on the brink of bankruptcy because they are frequently run by amateurs as a dream project (not the right type of restaurants). A longer period of vacancy usually means that it will never be a pub again.

The conversion (change of use from commercial to residential) typically costs a lot of money.
Personally, I would never buy a property that is largely made up of a pub. It almost always means stress and expenses.