Hello,
We are still at the very beginning of our planning. I’ll try to explain briefly. We currently live in a semi-detached house (owned) and want to buy a plot of land for construction. However, we have little equity and would initially need to finance the land alone. For building the house, we would need the proceeds from selling our current home. We do not want to move into a rental property in the meantime. What options are there? Is it possible to take out a second large loan for both the house and the land initially and later include the proceeds from selling our current home? Building while renting would probably have been easier. Maybe someone here can share their experience? Thanks and best regards
We are still at the very beginning of our planning. I’ll try to explain briefly. We currently live in a semi-detached house (owned) and want to buy a plot of land for construction. However, we have little equity and would initially need to finance the land alone. For building the house, we would need the proceeds from selling our current home. We do not want to move into a rental property in the meantime. What options are there? Is it possible to take out a second large loan for both the house and the land initially and later include the proceeds from selling our current home? Building while renting would probably have been easier. Maybe someone here can share their experience? Thanks and best regards
DaSch17 schrieb:
Income approach for properties rented out to third partiesNo. Not for properties valued on a replacement cost basis, such as condominiums or single-family houses. These are ALWAYS valued based on the replacement cost (even though in a formal appraisal the income approach is usually calculated as a matter of principle). This applies regardless of whether the property is rented out or owner-occupied.
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Pinkiponk26 Aug 2020 16:07We proceeded differently and are currently doing so. We sold our current single-family house, will soon move into a rental apartment, and then build the new house. We wanted to be sure that the proceeds from the old house would cover the construction costs of the new one. Additionally, we are relocating to an area with better quality of life and lower rent.
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neo-sciliar26 Aug 2020 16:14Pinkiponk schrieb:
also, we are moving to a region with better quality of life and lower rents. I call that really cleverly arranged.
We are currently trying to parallelize: sale and construction. The sales proceeds are relatively easy to estimate using different methods. We don’t want to move twice, but we are also staying within the same region.
Thank you very much for the numerous replies. We actually do not want to rent out the house. We want to completely move on from our current home. Yesterday, potential buyers came by who said we could stay here for another 1.5 years (18 months). Now we just have to make it work. You really have to keep your nerves in check with a situation like this. We viewed the potential future plot of land yesterday. Unfortunately, at the same time as other interested parties. The real estate agent is currently not willing to accept a reservation, only a second individual viewing. For financing the new land, we were told that it might be possible to increase the existing loan.
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neo-sciliar27 Aug 2020 10:48WiFa2801 schrieb:
Thank you very much for the numerous responses. We actually do not intend to rent out the property. We want to completely sever ties with our current house. Yesterday, potential buyers visited who would allow us to stay here for another 1.5 years (18 months). Now it just needs to work out. You really have to keep your nerves in check in a situation like this. We viewed the potential future plot yesterday. Unfortunately, it was at the same time as other interested parties. The real estate agent is currently not willing to agree to a reservation, only a second individual viewing. We were told that the existing loan could possibly be increased to finance the new plot. We are in a similar situation. I see two options when you have a potential buyer:
a) Notarized contract now, purchase price paid (and ownership transferred) in 18 months
b) Notarized contract now, purchase price paid now, with a right of residence for 18 months agreed in the notarized contract.
neo-sciliar schrieb:
We are in a similar situation. I see two options when you have a potential buyer:
a) notarial purchase contract now, payment of the purchase price (and thus transfer of ownership) in 18 months
b) notarial purchase contract now, payment of the purchase price now, with an 18-month right of residence agreed in the contract. Option b would be our current approach, as we want to use the money for building the house. The problem right now is that the land agent still hasn’t given a clear statement. We can only commit to the buyer once we have found a plot. Otherwise, it could take a very long time.
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