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.
N
nordanney10 Feb 2015 20:16Since you still don’t understand after so many posts, why not get some advice from a bank? We’re not getting anywhere here (we’re already on page 11).
P.S. If you want a bridge loan, it’s clear that you will be building a new house. This amount, like the regular mortgage, will be tied to the new property. You can’t just “use it from my account.” That’s only possible if you sell your place NOW and receive the money. Finally understood?
P.S. If you want a bridge loan, it’s clear that you will be building a new house. This amount, like the regular mortgage, will be tied to the new property. You can’t just “use it from my account.” That’s only possible if you sell your place NOW and receive the money. Finally understood?
nordanney schrieb:
P.S. If you want bridge financing, it’s clear that you will be building a new house. In that case, this amount, just like the "regular" loan, will go into the new property. There’s no way to “operate from my account.” That only works if you sell your current home NOW and receive the funds. Finally understood?Yes, I think so... but how is a clause usually and safely formulated in the purchase contract to ensure that moving in takes place only after agreement? I find it hard to imagine that a potential buyer would be willing or able to move in only after a year or even later.
N
nordanney11 Feb 2015 09:30ductom81 schrieb:
Yes, I think so... but how is a clause usually and safely worded in the purchase contract for me, ensuring that moving in only happens after agreement? I find it hard to imagine that a potential buyer can or wants to move in only after one year or even later. Hey, the buyer is the one making the request, not you. If they don’t like that they get the property only in 1.5 years, that’s tough luck. That’s exactly how it is right now – with current interest rates, everyone is “cool” about home ownership, since many wouldn’t be able to afford it at other rates; it’s a real seller’s market.
For example, write in the purchase contract the latest move-out date. “Only after agreement” is too vague. We had it stated that moving out would happen after 1.5 years with a three-month notice period (it was worded so that we had 1.5 years plus three months). The purchase price was paid immediately! In our neighborhood, many properties (I know about half a dozen) are arranged like this or with payment of the purchase price only after a certain number of months or years (though then you get your money later).
N
nordanney11 Feb 2015 11:59ductom81 schrieb:
That is definitely the most sensible approach, but it still puts a lot of pressure on me to have the new home ready for move-in... after all, you don’t want to suddenly find yourself homeless
...from Eiphone You will have to face one or the other outcome 😉…