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

Created on: 18 Jul 2020 15:41
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Berenike
Hello dear forum members!

Background: My boyfriend bought a house at a forced auction, quite cheaply, basically for the land value. He placed the lowest bid, assuming others would outbid him. However, no one did, and now he owns a house (which we/he do not urgently want to live in ourselves, at least not for the time being).

The house:
Overall, the house is in good condition, at least at first glance. Some renovations are necessary (e.g., the heating system). The last major refurbishment was apparently done in the 1980s. I can’t say much more about it at the moment.

My question:
Based on your experience, what is the best course of action? What makes sense financially?

For example:
1. Simply sell the house again (possibly after partial renovation and definitely at a higher price)
2. Renovate the house and rent it out as soon as possible? (The house could accommodate two tenants, and a part of it used to be a restaurant, which might be leased out again)
3. Renovate the house completely and then sell it.

What other options do you see from your experience? Where is the return on investment best?

I look forward to your answers and advice!

Best regards
Berenike
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T_im_Norden
18 Jul 2020 18:01
You were not specifically addressed, but if you feel targeted, it seems you believe it applies to you.

“Your friend acted without any knowledge and without a well-founded plan”
“Wow, is that courage or is there another term for it?”
“pure profit-seeking/greed”
“Your friend probably needs something other than a house building forum”

These statements have absolutely nothing to do with the question at hand and are derogatory remarks on your part.
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pagoni2020
18 Jul 2020 18:49
T_im_Norden schrieb:

You were not specifically addressed

...but since you only quote me and criticize my statements, at least stick to that—I can handle it.
T_im_Norden schrieb:

you seem to believe it applies to you.

Yes, I do... that’s the only conclusion from what you wrote.
I welcome criticism, and I can read reasonably well—
Berenike schrieb:

Some acquaintances who know a bit about this have already looked at the house and said it’s a good price. But yes, thanks, we will review everything again with a professional.

From this, it can be concluded that the acquaintances with “some knowledge” apparently know more about this subject than the original poster and spouse. Hence their positive response regarding the plan to review everything with a professional.
T_im_Norden schrieb:

“pure profit-seeking/greed”

“Profit-seeking” ... that’s the original poster’s wording. I added “greed” because various definitions strongly suggest it when someone, based on limited understanding of the circumstances (as described by the original poster), embarks on such an undertaking (house purchase) motivated by profit (which is understandable and not forbidden), but clearly cannot assess it properly (hence the thread was only started after the purchase).
Since the original poster appears to be involved in this situation in an unclear way (he/we...), I was honestly alarmed that they might be involved in something they cannot comprehend, which could have a major long-term impact on their life.
Therefore, I accept your repeated criticism and am aware that my comments were not kind to the original poster—that was not my intention either.
They will do whatever they want anyway, but I was personally always grateful when someone spoke frankly to me if I was maybe too enthusiastic. That was my intention here, and as soon as the original poster signals to me that they no longer want to read this or need a moderator, I will of course respect that.
For your understanding: I prefer direct communication; that’s why I encourage you to address me directly if you already quote only me.
You and the original poster can also be sure that it is not my hobby to downgrade people I do not know, not at all.
However, if I perceive something so dangerous in a (young) person, I say it—perhaps partly out of a sense of social responsibility.
Therefore, I take your criticism and standpoint seriously; you should not suspect any ill intentions on my part.
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HilfeHilfe
18 Jul 2020 19:11
Now that's what I call a risk. Schabbooo
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T_im_Norden
18 Jul 2020 19:15
I will respond only once here because such disputes in forums are pointless.

“You are only quoting me and criticizing my statements,”

I first quoted you when you addressed me directly and made it clear that you felt spoken to. I have no reason to quote others because I am not trying to address anyone in particular.

“Yes, I am.......that conclusion comes exclusively from what you wrote”

Only after I quoted you as explained above was there a direct reference to you.

“From this, it can be concluded that the acquaintances with 'a little knowledge' apparently know more about this topic than OP and Freund.”

Berenike’s text containing this passage was posted only after you had already posted, so you could not have concluded from Berenike’s first post that there was little knowledge involved.
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Joedreck
18 Jul 2020 20:09
Take it slow. There’s no rush at all. The first step is an honest assessment of the current situation. What was done when, and what still needs to be done?
What are properties in the area worth?
Do you want to live there or not?
Think about, or have him think about, how to proceed. If the house was purchased with equity, you have even more time.

I’m just an amateur, but I have bought and renovated two old houses. A lot of work in the energy performance certificate (EPC).
So, give it some thought.
Take photos and share them here. Photos of heating, water, sewage, roof, windows. Often, the double-glazed windows are stamped with a manufacturing date between the panes.
Was there a pub inside? Contact the local authority to find out how much a change of use (building permit / planning permission) would cost.
Draw and share the floor plans.
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pagoni2020
18 Jul 2020 21:11
T_im_Norden schrieb:

I will respond to this only once, as such disputes in forums are pointless.

Considering this insight exists, quite a bit still follows......
T_im_Norden schrieb:

So you couldn’t conclude from Berenike’s first post that there was little knowledge?

If you had read post #1, you would know that the original poster (OP) had not considered the necessary aspects BEFORE the purchase and is now (AFTER the purchase) looking for “expertise” here in the forum (see post #1). Therefore, at that time, at least insufficient knowledge was present; fittingly, an on-site inspection with acquaintances who have “a little knowledge.”
Berenike schrieb:

What other options would there be based on your experience? Where is the return the best?

Since you described my comment as unobjective or dismissive, I would be interested in your — objective — opinion on the matter, which the OP might also appreciate.
Apart from criticizing my choice of words, there has been nothing from you on this topic so far, although the OP explicitly requested input from forum members, including you (see post #1).
I expressed my position directly because, from what had been written up to that point, I feared the OP might be too trusting and end up in a very unpleasant situation.
So, @T_im_Norden, be assured, I do not write with ill intent but genuinely tried to warn her in clear terms about the high risks of careless decisions.
Let’s leave it at that, and I actually thank you for your criticism, which usually (especially for me!) leads to necessary reflection.