ᐅ Renting out an old house or selling it and buying a condominium/apartment
Created on: 24 May 2021 13:02
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Sine_bati
Hello dear forum members,
We are currently building a house, and the financing is secured. I own an older single-family house in the Rhein Main area that is fully paid off, where we have registered a land charge of 100,000 euros to get a better interest rate.
The plan was to rent out the old house, which is generally possible since there is demand. It has 100 sqm (1,076 sq ft), and I am thinking of 900 euros (about $980) rent excluding utilities, which are likely higher than for a newer house (due to high electricity and heating costs).
However, I have concerns about renting it out because it is uninsulated, meaning, among other things, you are not allowed to place cabinets too close to the walls, and you have to heat it sufficiently to avoid mold risk. Also, it needs renovation (wallpaper, floors). The heating system itself is new, but there are certain specific issues to watch out for. I am also worried that if I want to sell the old house in 10 years, it might be more difficult because I may not be able to get the tenants to leave or because I cannot properly assess the condition of the house, and so on.
Now I am considering selling the house since prices are currently very high and using the money to buy one or two small new-build apartments (price per sqm about 4,800 euros (approx. $5,300)) to rent out. Possibly, in 10 years, if interest rates rise significantly, I could sell one apartment again to pay off part of the loan for our newly built house.
What would you do? Would you rather rent out the old house or sell it and invest in new-build apartments, and then register the land charge for the new house here? Thanks in advance.
We are currently building a house, and the financing is secured. I own an older single-family house in the Rhein Main area that is fully paid off, where we have registered a land charge of 100,000 euros to get a better interest rate.
The plan was to rent out the old house, which is generally possible since there is demand. It has 100 sqm (1,076 sq ft), and I am thinking of 900 euros (about $980) rent excluding utilities, which are likely higher than for a newer house (due to high electricity and heating costs).
However, I have concerns about renting it out because it is uninsulated, meaning, among other things, you are not allowed to place cabinets too close to the walls, and you have to heat it sufficiently to avoid mold risk. Also, it needs renovation (wallpaper, floors). The heating system itself is new, but there are certain specific issues to watch out for. I am also worried that if I want to sell the old house in 10 years, it might be more difficult because I may not be able to get the tenants to leave or because I cannot properly assess the condition of the house, and so on.
Now I am considering selling the house since prices are currently very high and using the money to buy one or two small new-build apartments (price per sqm about 4,800 euros (approx. $5,300)) to rent out. Possibly, in 10 years, if interest rates rise significantly, I could sell one apartment again to pay off part of the loan for our newly built house.
What would you do? Would you rather rent out the old house or sell it and invest in new-build apartments, and then register the land charge for the new house here? Thanks in advance.
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Sine_bati28 May 2021 12:59Rumbi441 schrieb:
Just to clarify again. You took out a loan even though the old house would generate enough money through the sale? Yes, exactly. It is my parents’ house which we currently live in ourselves. The plan was to rent it out, also because I wasn’t ready to sell it yet. However, now I am considering a sale.
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däumchen1128 May 2021 14:21Well, I would appreciate having a landlord who doesn’t invest anything in the house (uninsulated), charges me rent, and then even tells me how I should arrange my cabinets.
Then mold develops, the landlord sues the tenant, and the tenant sues the landlord. Do yourself a favor and just sell the house as soon as you stop working.
Then mold develops, the landlord sues the tenant, and the tenant sues the landlord. Do yourself a favor and just sell the house as soon as you stop working.
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Sine_bati28 May 2021 19:11däumchen11 schrieb:
Well, I would be happy to have a landlord who doesn’t invest anything in the house (uninsulated), who charges me rent, and then even tells me how to arrange my cabinets.
Then mold appears, the landlord sues the tenant, the tenant sues the landlord. Do yourself a favor and just sell the place instead of dealing with this. Yes, I can understand that as a tenant you don’t want the landlord to dictate how you arrange things. I have lived in this house for a long time now, and there is currently no mold. You just have to treat the house accordingly, and I know I probably can’t expect that from tenants, even if I charged a moderate rent.
My current preference is clearly to sell and buy a newly built condominium that I can then rent out. For me, it’s generally not about profit but about preserving the value.
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Sine_bati28 May 2021 22:19Okay, thanks for your advice. And how would you invest the money that accumulates over the years?