ᐅ How to manage a property relocation over a distance of more than 600 km?
Created on: 28 Dec 2021 19:20
K
kati1337
Hello everyone!
We are considering relocating to a different property and area.
Current situation: Newly built house from 2020 in Lower Saxony,
Looking for: Property or new build in Saarpfalz district.
We have thought of several options – maybe you have other ideas?
**1. Sell, move, rent, do a new build/renovation, then move again**
- On one hand, this is the easiest to manage, but on the other hand, we don’t really want to move twice in a short time or rent again.
**2. Find a property that is "livable," move in, sell the old house, then renovate/modernize**
- This essentially rules out a full renovation because it’s difficult to do one while already living there.
- It would be financially possible (significantly higher income than before, current savings rate is about twice the current loan repayment) – whether a bank would approve this is another question.
**3. Look for a new build project or property to fully renovate (“have it done”), move in when finished, then sell the old house**
- Financially similar to option 2 – doable, but this means double costs for a while.
- Full renovation or new build is possible. There are a few nice plots available there – however, due to the distance, we would have little opportunity to supervise the construction progress.
- Are there recommended companies for this kind of service, if you can’t be present on-site all the time? Just a building surveyor/inspector?
Do you have any other ideas?
We are considering relocating to a different property and area.
Current situation: Newly built house from 2020 in Lower Saxony,
Looking for: Property or new build in Saarpfalz district.
We have thought of several options – maybe you have other ideas?
**1. Sell, move, rent, do a new build/renovation, then move again**
- On one hand, this is the easiest to manage, but on the other hand, we don’t really want to move twice in a short time or rent again.
**2. Find a property that is "livable," move in, sell the old house, then renovate/modernize**
- This essentially rules out a full renovation because it’s difficult to do one while already living there.
- It would be financially possible (significantly higher income than before, current savings rate is about twice the current loan repayment) – whether a bank would approve this is another question.
**3. Look for a new build project or property to fully renovate (“have it done”), move in when finished, then sell the old house**
- Financially similar to option 2 – doable, but this means double costs for a while.
- Full renovation or new build is possible. There are a few nice plots available there – however, due to the distance, we would have little opportunity to supervise the construction progress.
- Are there recommended companies for this kind of service, if you can’t be present on-site all the time? Just a building surveyor/inspector?
Do you have any other ideas?
kati1337 schrieb:
Hello everyone!So it’s decided then? Not the route, but the fact of going ahead?
I assume the situation/distance to the future neighbors has been thoroughly clarified?
By the way, I think it’s great that you have the determination and courage to carry it through.
saralina87 schrieb:
You only start repaying once the loan has been fully drawn, right...? Of course, interest accrues beforehand, but not the full installment?
Or is the question about being able to get a further financing at all? Yes, exactly, that’s more what I meant.
I’m not sure how they see it since we invested most of our equity (which honestly wasn’t much at the time – around 30,000 euros (about 33,000 US dollars)) into the first loan. So, right now we don’t have much equity left to contribute. We could possibly borrow some from family.
If we pursued this, our income and net household income would be significantly higher than during the first financing application. Currently, we pay an installment of 1,200 euros (about 1,320 US dollars) per month, and we’d have savings of around 2,000 euros (about 2,210 US dollars) monthly, or even 2,400 euros (about 2,650 US dollars) per month once daycare fees end in August. That means, theoretically, we could afford a second loan installment of 1,200 euros (about 1,320 US dollars). It would only be temporary anyway.
But I don’t know how the bank evaluates this or how much the first house counts as an asset. We built it at total costs of about 445,000 euros (around 490,000 US dollars), we could probably sell it now for an estimated 550,000 to 600,000 euros (around 605,000 to 660,000 US dollars), with remaining debt of about 380,000 euros (around 420,000 US dollars).
I’m especially uncertain about the potential sale price. The real estate market (especially for new houses) is very thin here, and it’s hard to find a realistic estimate of what we might get for it. Do you have any good advice on where I could get that information? I’d rather not sell through a real estate agent because I don’t want to impose the high commission on potential buyers.
MaxiFrett schrieb:
Having family nearby is a great advantage! If they’re okay with helping oversee the construction, I wouldn’t hesitate to do it myself. Yes, they would be very close. That’s actually our main motivation for moving there. We have no family where we currently live. I moved here for love and university, and stayed because I found a job, then another job, and that’s how it goes when you’re in your twenties. But now, with a child, it would be nice to live closer to family. And professionally, since 2022, for the first time in over 10 years, we are no longer bound to one location.
They live only two towns away from the (potential) building site, and my sister even just one street away; she could probably send us pictures every day. XD
T
TheRealDomski29 Dec 2021 14:23That all sounds too good to be true.
Whether a remote build works largely depends on the general contractor (GC).... in hindsight, I have no concerns with ours, but unfortunately, they no longer exist.
I'm torn when it comes to the banks. Smaller local banks tend to be more open to these kinds of projects, but the long distance between the two properties might be a challenge. It might be worth considering a sale through the real estate service of the bank currently providing financing.
@kati1337 could you please send me a private message? I’m currently looking around southern Lower Saxony.
Whether a remote build works largely depends on the general contractor (GC).... in hindsight, I have no concerns with ours, but unfortunately, they no longer exist.
I'm torn when it comes to the banks. Smaller local banks tend to be more open to these kinds of projects, but the long distance between the two properties might be a challenge. It might be worth considering a sale through the real estate service of the bank currently providing financing.
@kati1337 could you please send me a private message? I’m currently looking around southern Lower Saxony.
TheRealDomski schrieb:
This all sounds too good to be true.
Whether a remote build works out largely depends on the general contractor (GC)... In hindsight, I have no concerns about ours, but unfortunately, they are no longer available.
I’m torn about the banks. Local community banks tend to be more open to such cases, but the large distance between the two properties could be a challenge. Maybe selling through the real estate service of the current financing bank would be a good option.
@kati1337 could you please send me a private message? I’m currently looking around southern Lower Saxony. I can do that – but it will still be a while before we move out here.
I feel the same about the GC – I think I would build remotely again without any worries with our GC. However, they usually work locally, not in southwestern Germany.
I would actually prefer to hold off on selling to avoid stress, so basically plan to build new and organize the move first, and then sell in parallel once we know when and where we will be able to move.
T
TheRealDomski29 Dec 2021 14:33I'm not looking to move immediately either, but in the end, it could come down to a property swap. Basically, I'm in the same situation as you.
Would the new building plot be in a new development area or an infill site? Regarding the neighborhood issue, a new development area could be "out of the frying pan into the fire." Just saying.
Would the new building plot be in a new development area or an infill site? Regarding the neighborhood issue, a new development area could be "out of the frying pan into the fire." Just saying.
TheRealDomski schrieb:
I'm not looking to move immediately either, but in the end, it could come down to a property swap. Basically, I'm in the same situation as you.
Would the new building plot be in a new development or an infill lot? Regarding the neighborhood issue, a new development could mean going "from the frying pan into the fire." Just saying. We haven't made a firm decision yet, of course. But the family knows someone who has been holding onto a building plot for some time and isn’t sure whether to sell it. We might be able to get that one. That would be an infill lot. My sister lives nearby and says it’s usually quiet there.
In general, though, I haven’t experienced the same kind of dynamic anywhere else, and I’ve had a few addresses on my ID before. This settlement is a bit unusual.