Hello everyone,
I need some help and advice and hope to get a few suggestions on how to proceed.
In 2010, we bought an end-terrace house in northern Berlin in a very desirable location (120 sqm (1,292 sq ft) living space, 250 sqm (2,691 sq ft) garden, 3 floors, parking space, excellent infrastructure) at a very favorable price (bankruptcy sale).
This house is now to be sold for a new construction project, as private circumstances have changed and the house no longer meets many of our new requirements.
What is the best way to proceed here?
How can one coordinate the sale of the current house with the new project?
What options are there to handle this financially in the smartest way possible?
What risks should be considered?
What does a term like “property swap” mean in this context?
There is still an outstanding loan on our current house of about €98,000.
According to our research, the market value is around €200,000. Is it correct to assume that €200,000 sale proceeds minus €98,000 remaining loan and prepayment penalty equals my net profit?
The property has been continuously owner-occupied by us (so no capital gains tax to consider?).
Regarding the new construction project
We have clear ideas about the new house and have set a maximum budget of €350,000 for all related costs.
We have a net monthly income of €4,700, which I believe is above average. Are these assumptions realistic?
It would be great to receive some guidance or suggestions here.
I need some help and advice and hope to get a few suggestions on how to proceed.
In 2010, we bought an end-terrace house in northern Berlin in a very desirable location (120 sqm (1,292 sq ft) living space, 250 sqm (2,691 sq ft) garden, 3 floors, parking space, excellent infrastructure) at a very favorable price (bankruptcy sale).
This house is now to be sold for a new construction project, as private circumstances have changed and the house no longer meets many of our new requirements.
What is the best way to proceed here?
How can one coordinate the sale of the current house with the new project?
What options are there to handle this financially in the smartest way possible?
What risks should be considered?
What does a term like “property swap” mean in this context?
There is still an outstanding loan on our current house of about €98,000.
According to our research, the market value is around €200,000. Is it correct to assume that €200,000 sale proceeds minus €98,000 remaining loan and prepayment penalty equals my net profit?
The property has been continuously owner-occupied by us (so no capital gains tax to consider?).
Regarding the new construction project
We have clear ideas about the new house and have set a maximum budget of €350,000 for all related costs.
We have a net monthly income of €4,700, which I believe is above average. Are these assumptions realistic?
It would be great to receive some guidance or suggestions here.
B
Bauexperte6 Jan 2015 12:10Hello,
Um ... hasn’t it now been implemented and decided that the person who hires the agent pays the broker’s fee?
Regards, Bauexperte
HilfeHilfe schrieb:
If you are dealing with the sale, I would hire a real estate agent. The commission is paid by the buyer anyway.
Um ... hasn’t it now been implemented and decided that the person who hires the agent pays the broker’s fee?
Regards, Bauexperte
Bauexperte schrieb:
Hello,
Um ... hasn’t it already been decided and implemented that the broker’s commission is paid by the party who commissions the service?
Regards, BauexperteThat is correct. However, it is not yet in effect (first half of 2015).
Does the principle that the party who hires the agent pays the commission apply only to rentals, or is it generally valid whenever a real estate agent is involved? Is it possible to pass the agent’s commission on to the buyer and include this in the purchase contract?
Bridge financing: Did I understand correctly that the bank essentially advances us virtual equity, which we simultaneously assign from the sales proceeds in the same amount? What is the bank’s security if, for any reason, the house is not sold or is sold at too low a price so that the advanced equity can never be repaid?
...from Eiphone
Bridge financing: Did I understand correctly that the bank essentially advances us virtual equity, which we simultaneously assign from the sales proceeds in the same amount? What is the bank’s security if, for any reason, the house is not sold or is sold at too low a price so that the advanced equity can never be repaid?
...from Eiphone
Bauexperte schrieb:
Um ... hasn’t it already been implemented and decided that the person who commissions pays the realtor’s commission?This only applies to rentals. When buying a property, the usual buyer has always factored the realtor’s fees into the purchase price, meaning they offer more if no commission is due.
ductom81 schrieb:
Bridge financingIt is basically a standard loan, but the lender does not include it when calculating the loan-to-value ratio. You secure it normally with a mortgage on the new property. The interest rates are relatively high, but you can basically repay it in full at any time.