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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Joedreck
19 Jul 2020 20:21
11ant schrieb:

The information that a commercial property vacancy is included and that there was no competing bidder was already precise enough to reasonably advise “when in doubt, don’t keep dreaming.”

Volunteering doesn’t mean being a rookie amateur. When describing a typical disaster entry scenario, it’s better to warn someone one time too many.

The new owner still doesn’t know what they want. There’s no need to warn anyone. Giving advice about relationships, future marriage, and discouraging it without knowing anything about the people involved is simply presumptuous.
No, volunteering does not automatically mean being a rookie.
However, giving advice based on incomplete information is often a “symptom” of wannabe professionals.
True professionals gather all available information before making an assessment.
I stand by my statement: presumptuous and offensive.
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BackSteinGotik
19 Jul 2020 23:10
Joedreck schrieb:

The new owner doesn’t even know what they want yet. There is no reason to issue any warnings.
[..]
Professionals gather all available information before assessing a situation.
Two sentences you can apply to the matter being discussed here. Do you get the impression that the investment (which was the only topic, see the first post) was handled accordingly? Was it really purchased at a “bargain”? Were the value limits still valid? And how does anyone get the idea that “the others” will definitely bid higher and then immediately jump in first? With an offer that was sufficient to secure the contract? This isn’t an eBay highest bid situation; the creditor liked the price and accepted it.
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Aphrodithe
19 Jul 2020 23:17
Joedreck schrieb:

The new owner doesn’t even know what they want yet. There’s no need to warn them. Giving advice about relationships, future marriage, and discouraging it without any information about the people involved is simply presumptuous.
No, volunteering doesn’t automatically mean being inexperienced.
However, giving advice based on incomplete information is often a "symptom" of would-be experts.
True professionals gather all available information before evaluating a situation.
I stand by my statement: presumptuous and offensive.

The only person being presumptuous here is you! Anyone with a bit of common sense can see that the friend of the original poster has blindly and naively put himself in a situation he cannot properly assess! Everyone here who urges caution and carefulness to avoid financial disaster is acting prudently and reasonably! Anything else is nearly intentional bad advice!
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pagoni2020
19 Jul 2020 23:26
Joedreck schrieb:
The new owner doesn’t even know what they want yet
That is precisely why the original poster (OP) is being warned for good reason, since generally a project plan should be developed BEFORE such a purchase.
Joedreck schrieb:
There’s no need for any warning
Each forum participant can decide that for themselves, and the OP will figure out what they want on their own; they are entitled to and will make that decision alone.
Joedreck schrieb:
And advice about relationships, future marriage, and discouraging it without any information about the people involved is simply presumptuous.
Of course, no one intended to discuss intimate relationship details; however, the warnings clearly reflected concerns about thoughtless actions in connection with a costly project. The OP deliberately titled their thread strikingly: “House bought cheaply. What now?” All forum members are asked for input and so everyone who believes they can provide helpful advice is responding.
Joedreck schrieb:
‘Symptom’ of wannabe experts... I stick to my view: presumptuous and insulting.
It seems more presumptuous to me when someone accuses a forum member they don’t personally know of bad intentions and questions their expertise so bluntly without knowing them. Again, only the OP can decide if they feel insulted; it is more intrusive to impose that feeling on them simply because one cannot accept a different assessment and therefore accuses others of unprofessional conduct. It is unfortunate that you suspect ill motives here and appear angrily self-affected, instead of simply accepting that nobody here has any negative intention, but rather, for repeatedly stated reasons, offers sincere advice to a young woman to warn her against potentially careless decisions.
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pagoni2020
19 Jul 2020 23:40
Ben-man schrieb:

At least you know where to turn if you ever need marriage counseling. In the HOUSE BUILDING forum...
Well, with that idea, you could start your own thread, right?
“Marriage counseling” certainly can’t hurt, especially when it comes to building or buying a house. If some people had gone there a bit earlier, many homes wouldn’t be resold today and livelihoods wouldn’t be auctioned off (as discussed in the thread).
So I look forward to your new thread on this really important topic.
Some have even accidentally met their partner there during an initial counseling session, who had been attending regularly and with good reason... or the sad truth was conveyed the usual way by registered mail without any such counseling.
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Worrier84
20 Jul 2020 01:10
I am always impressed by how the house building forum users manage to independently sustain a conversation of around 2000 pages after just 3-4 posts from a thread starter.