ᐅ How to manage a property relocation over a distance of more than 600 km?
Created on: 28 Dec 2021 19:20
K
kati1337
Hello everyone!
We are considering relocating to a different property and area.
Current situation: Newly built house from 2020 in Lower Saxony,
Looking for: Property or new build in Saarpfalz district.
We have thought of several options – maybe you have other ideas?
**1. Sell, move, rent, do a new build/renovation, then move again**
- On one hand, this is the easiest to manage, but on the other hand, we don’t really want to move twice in a short time or rent again.
**2. Find a property that is "livable," move in, sell the old house, then renovate/modernize**
- This essentially rules out a full renovation because it’s difficult to do one while already living there.
- It would be financially possible (significantly higher income than before, current savings rate is about twice the current loan repayment) – whether a bank would approve this is another question.
**3. Look for a new build project or property to fully renovate (“have it done”), move in when finished, then sell the old house**
- Financially similar to option 2 – doable, but this means double costs for a while.
- Full renovation or new build is possible. There are a few nice plots available there – however, due to the distance, we would have little opportunity to supervise the construction progress.
- Are there recommended companies for this kind of service, if you can’t be present on-site all the time? Just a building surveyor/inspector?
Do you have any other ideas?
We are considering relocating to a different property and area.
Current situation: Newly built house from 2020 in Lower Saxony,
Looking for: Property or new build in Saarpfalz district.
We have thought of several options – maybe you have other ideas?
**1. Sell, move, rent, do a new build/renovation, then move again**
- On one hand, this is the easiest to manage, but on the other hand, we don’t really want to move twice in a short time or rent again.
**2. Find a property that is "livable," move in, sell the old house, then renovate/modernize**
- This essentially rules out a full renovation because it’s difficult to do one while already living there.
- It would be financially possible (significantly higher income than before, current savings rate is about twice the current loan repayment) – whether a bank would approve this is another question.
**3. Look for a new build project or property to fully renovate (“have it done”), move in when finished, then sell the old house**
- Financially similar to option 2 – doable, but this means double costs for a while.
- Full renovation or new build is possible. There are a few nice plots available there – however, due to the distance, we would have little opportunity to supervise the construction progress.
- Are there recommended companies for this kind of service, if you can’t be present on-site all the time? Just a building surveyor/inspector?
Do you have any other ideas?
kati1337 schrieb:
We built it at a total cost of around 445,000, and we could probably sell it now for 550,000 to 600,000. The remaining mortgage balance is about 380,000.You must have to pay a fairly high early repayment penalty to the bank, right?
Yaso2.0 schrieb:
You have to pay quite a high prepayment penalty to the bank, right?Yes, that's what I expect. 🙂 However, it can't exceed the interest owed for the first 10 years of the contract period plus negative interest charges, as there are laws regulating this.
There are also online calculators where you can estimate the amount, at least approximately.
M
Myrna_Loy29 Dec 2021 20:17My cousin supposedly did not have to pay any early repayment fees because she stayed with the same bank. She sold her apartment and built a house. However, I am not sure if this was a special condition since her husband works at the bank.
You can also sell your new house before construction is complete but continue living in it, arranging all the details in the sales contract. For example, you move out on a specific date and pay rent until then, or a calculated deduction from the purchase price is made, or most of the payment is transferred on the agreed date, and so on.
W
WilderSueden29 Dec 2021 20:30Of course, the move must not be delayed. The pool of potential buyers is also limited by the fact that you can only move into the purchased house after one year. I think the option to build first and sell the old house afterward is more practical—if you can secure financing from the bank.
M
motorradsilke29 Dec 2021 20:36kati1337 schrieb:
Yes, I assume so too. 🙂
However, it cannot exceed the interest owed for the first 10 years of the contract term plus negative interest, as there are legal limits.
There are online calculators where you can estimate this, at least approximately. If the buyer also needs to finance the purchase price, they might be able to take over your loan. This way, you can avoid the early repayment penalty. Of course, this assumes that the bank would offer the buyer a loan for that amount.