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
N
nordanney25 Aug 2020 21:05Yaso2.0 schrieb:
However, the interest rate for the bridging loan is correspondingly higher. What are you paying? This is a loan without collateral, meaning no mortgage. Probably somewhere between 2.5% and 3%. You can include the interest costs in the financing.
nordanney schrieb:
What are you paying? This is financing without collateral, meaning no mortgage. Probably somewhere between 2.5% and 3%. You can finance the interest costs as well. It’s 3%.
Is it possible to take out the money “normally” through the financing and negotiate with the bank to, for example, repay 100,000 and save on interest, or something similar?
N
nordanney25 Aug 2020 21:45Yaso2.0 schrieb:
Is it possible to take out the money with a regular mortgage and negotiate with the bank, for example, to repay 100,000 again or something similar, so that you save on interest? It’s a variable financing option that can be repaid daily (unless you finance through the Euribor). So, it’s quite flexible.
nordanney schrieb:
... so the original poster would need to finance significantly more if they do not sell the house. While they might be able to manage this thanks to rental income, the situation is essentially the same as if they sold the house. How a bank evaluates this, especially when taxes and operating costs are deducted from the rental income, is another matter. Not to mention the risks associated with renting.Therefore, it is always an individual case-by-case decision. You simply cannot say in general that renting is better than selling, or vice versa.
nordanney schrieb:
There is practically no difference.I disagree. A condominium or semi-detached house is usually rented out faster and at a higher price per square meter (EUR/m²) than a single-family house, which is why, fortunately, single-family houses generally are not suitable as income properties and are not typically purchased by investors.
nordanney schrieb:
???Condominium/semi-detached house: income value is usually higher than the replacement value
Single-family house: replacement value is usually higher than the income value
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