ᐅ Brainstorming Ideas for a Potential Move in the Hildesheim Area
Created on: 9 Jul 2021 08:28
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Tom197680
Hello everyone, first a brief background. We want to help a couple of friends and need your advice. He (34) and his wife (30) both work full-time. He commutes to Hannover, and she commutes to Hildesheim. Currently, they both have to travel by car because they are financing a semi-detached house they live in near Wolfsburg. The problem: they don’t want to commute that far in the future and are considering buying a building plot from the municipality located between Hannover and Hildesheim. They plan to build a single-family house on this plot and then rent out the semi-detached house.
Does it make sense to take out a loan for building a single-family house here? Or are there other alternatives?
If you need more details, please let me know.
Does it make sense to take out a loan for building a single-family house here? Or are there other alternatives?
If you need more details, please let me know.
You must be referring to the questions asked to acquaintances without internet access. 😉 However, the calculation doesn't seem very realistic to me at first. And if we assume 18 years of remaining fixed interest period, then the loan only lasts two years? Or was it financed with a 30-year fixed interest period? If the former: why would someone decide two years after moving in that they don't want to live there?
I don’t think we need to spend time debating whether we’re playing "Simon says" here ;-)
Only for those few people for whom it would actually make sense to build or buy a second house solely for rental purposes while continuing to live in the current house — because, apart from tax details, that would basically be the same thing.
The mortgage swap is supposed to avoid exactly that.
We’ve had that kind of thing quite regularly, although I avoid the finance section like 11ant avoids the cheetah pack, so I can’t really provide you with reading recommendations or links here. Among others, @Pinkiponk moved from an owner-occupied single-family house in Somewhere to an owner-occupied single-family house in Another Place.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
Tom197680 schrieb:
Doesn’t it make sense to rent out the other property?
Only for those few people for whom it would actually make sense to build or buy a second house solely for rental purposes while continuing to live in the current house — because, apart from tax details, that would basically be the same thing.
Tom197680 schrieb:
If you sell the property, you incur early repayment fees.
The mortgage swap is supposed to avoid exactly that.
Tom197680 schrieb:
I’ll look through the other posts to see if there’s a similar situation.
We’ve had that kind of thing quite regularly, although I avoid the finance section like 11ant avoids the cheetah pack, so I can’t really provide you with reading recommendations or links here. Among others, @Pinkiponk moved from an owner-occupied single-family house in Somewhere to an owner-occupied single-family house in Another Place.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
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Tom19768010 Jul 2021 13:38At the time of purchasing the semi-detached house, it was assumed that we would continue living in the Wolfsburg area, with the hope of eventually working for the company with the two big letters. However, things turned out differently, as the partner accepted a position at the company in Hannover, and the partner also took a job within the company in Hildesheim. They do not want to endure the long commute in the long term and therefore want to buy a building plot in the Hildesheim area and build a new house. Unless you have a better suggestion?
The loan has a term of 20 years.
The loan has a term of 20 years.
Tom197680 schrieb:
At the time of purchasing the semi-detached house, it was assumed that one would continue living in the Wolfsburg area. Oh, the existing house is also the rental property-to-be (I might have missed that) – then you might soon face the first major maintenance expenses. Rental income does not equal rental profit; are you planning to already use that to cover gaps in the financing of the new house?
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
T
Tom19768010 Jul 2021 14:07The semi-detached house was a new build.
Well then... Anyone who wants the luxury of changing a generally long-term plan after just two years has to pay for it – including capital gains tax in case of a profit from selling. I’m certainly not someone who buys/builds a house expecting it to last forever, but I haven’t managed to change my mind that quickly so far.