Hello,
We are still at the very beginning of our planning. I’ll try to explain briefly. We currently live in a semi-detached house (owned) and want to buy a plot of land for construction. However, we have little equity and would initially need to finance the land alone. For building the house, we would need the proceeds from selling our current home. We do not want to move into a rental property in the meantime. What options are there? Is it possible to take out a second large loan for both the house and the land initially and later include the proceeds from selling our current home? Building while renting would probably have been easier. Maybe someone here can share their experience? Thanks and best regards
We are still at the very beginning of our planning. I’ll try to explain briefly. We currently live in a semi-detached house (owned) and want to buy a plot of land for construction. However, we have little equity and would initially need to finance the land alone. For building the house, we would need the proceeds from selling our current home. We do not want to move into a rental property in the meantime. What options are there? Is it possible to take out a second large loan for both the house and the land initially and later include the proceeds from selling our current home? Building while renting would probably have been easier. Maybe someone here can share their experience? Thanks and best regards
The magic word is bridge financing. The amount you expect to receive from the sale of your house is additionally financed on a variable basis, meaning it can be canceled or repaid at any time and does not require ongoing principal payments. This, however, assumes that you can cover the planned interest for this loan from your own equity or current income.
K1300S schrieb:
What you believe to have as proceeds from the house sale is additionally financed as a variable loan on top of the remaining balance, meaning it can be terminated or repaid at any time without ongoing principal payments. Or a bullet loan due in, for example, 2 years.
Is the semi-detached house currently encumbered? If so, how much? What is the repayment rate?
Why is keeping and renting it out not an option? The advantages are quite obvious here... Anyone who doesn’t absolutely have to sell should currently avoid selling their property.
DaSch17 schrieb:
Why isn’t keeping and renting out an option? The advantages are quite obvious... Anyone who doesn’t have to sell right now shouldn’t sell a property at the moment.Why? What advantages would there be? For example, in the case of a property free of encumbrances, having to pay tax on rental income at the marginal tax rate and on top of that the operating costs?