Hello everyone,
I have another question and hope to get some input from experienced members.
Here is our current situation:
We are very interested in buying a house and have already submitted loan inquiries and are currently comparing options.
The house in question is planned to be sold this year but will only be available in the summer. The reasons for this have been given by the seller and are understandable.
Since we are currently renting, we want to avoid overlapping costs in the form of rent and mortgage payments. Does anyone have experience or ideas on how to handle this?
We already have one idea, but I’m not sure if it’s practical or even possible – as I said, we lack experience.
The purchase would be completed this year, and starting from 01.01.2016, the former owners would become tenants and pay me an amount equivalent to the mortgage plus additional costs. This way, repayment of the loan can already begin (since interest-free grace periods for loan drawdowns longer than 6 months usually incur extra costs), but without overlapping financial burdens.
Good idea? Not so good? Is there a better or different approach? If so, how?
Thank you very much for your advice.
I have another question and hope to get some input from experienced members.
Here is our current situation:
We are very interested in buying a house and have already submitted loan inquiries and are currently comparing options.
The house in question is planned to be sold this year but will only be available in the summer. The reasons for this have been given by the seller and are understandable.
Since we are currently renting, we want to avoid overlapping costs in the form of rent and mortgage payments. Does anyone have experience or ideas on how to handle this?
We already have one idea, but I’m not sure if it’s practical or even possible – as I said, we lack experience.
The purchase would be completed this year, and starting from 01.01.2016, the former owners would become tenants and pay me an amount equivalent to the mortgage plus additional costs. This way, repayment of the loan can already begin (since interest-free grace periods for loan drawdowns longer than 6 months usually incur extra costs), but without overlapping financial burdens.
Good idea? Not so good? Is there a better or different approach? If so, how?
Thank you very much for your advice.
T
toxicmolotof8 Oct 2015 20:30You can also inform your bank that the purchase price is only due on DD.MM.YYYY and negotiate with them until the interest on the purchase financing is postponed until after this date. Nowadays, most banks don’t mind whether it’s 6, 9, or 12 months, as long as the deal goes through. This is especially true if the exact date of the payment is already determined.
I
instigater8 Oct 2015 20:31Yes, that is correct. With the current offers available, the period is 6 months – you can buy more time. Usually, this costs 0.02% per month. The problem is that this amount is carried throughout the entire loan term.
T
toxicmolotof8 Oct 2015 20:32I would negotiate that part. Most banks don’t have a problem with that for up to one year.
I
instigater8 Oct 2015 20:36That sounds like a plan. That way, both the seller and the buyer could save themselves the hassle of dealing with rent payments. The contracts will only be revised upon moving out and settled through an interim invoice. Done.
As mentioned before, it’s not a double burden since you’re essentially paying yourself. If you choose to have an interest-only period for about a year, you would theoretically need to extend the repayment period accordingly.
I sold property myself and was allowed to live rent-free for 9 months. In return, we agreed on a lower price. We received the payment initially in two installments: one after signing the contract, and the other after the property was registered in the land registry or similar.
Honestly, with a second-hand property, a lot depends on perception and trust. 1000 € per square meter (around $110 per square foot) doesn’t really exist. The seller wants to reclaim their valuable fittings, while the buyer tries to pay as little as possible without causing offense. The agreement usually falls somewhere in the middle—but where exactly that middle is varies. If you want the house, spending an extra 5,000 to 10,000 € (around $5,500 to $11,000) just for personal preference is not uncommon!
I sold property myself and was allowed to live rent-free for 9 months. In return, we agreed on a lower price. We received the payment initially in two installments: one after signing the contract, and the other after the property was registered in the land registry or similar.
Honestly, with a second-hand property, a lot depends on perception and trust. 1000 € per square meter (around $110 per square foot) doesn’t really exist. The seller wants to reclaim their valuable fittings, while the buyer tries to pay as little as possible without causing offense. The agreement usually falls somewhere in the middle—but where exactly that middle is varies. If you want the house, spending an extra 5,000 to 10,000 € (around $5,500 to $11,000) just for personal preference is not uncommon!