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?
You can keep your current mortgage for the new house running and possibly increase it, if your bank allows.
We happened to still owe 380,000 (380k) on our condominium, but we paid off the loan and covered the prepayment penalty.
For the new house, we then took out a new mortgage with a significantly better interest rate.
You need to calculate what is more cost-effective for you. Sometimes, a better interest rate offsets the prepayment penalty.
We happened to still owe 380,000 (380k) on our condominium, but we paid off the loan and covered the prepayment penalty.
For the new house, we then took out a new mortgage with a significantly better interest rate.
You need to calculate what is more cost-effective for you. Sometimes, a better interest rate offsets the prepayment penalty.
motorradsilke schrieb:
If the buyer also needs financing for the purchase price, they might be able to take over your loan. That way, you save the early repayment penalty. Of course, this assumes the bank would offer the buyer a loan for that amount. But the buyer would have to take over your terms exactly as they are.
And with today's interest rates... Although I don’t know what interest rate Kati arranged her financing at.
I doubt anyone would take over mine at 1.79% from 5.5 years ago 🙂
Tolentino schrieb:
You can also sell the house before building the new one but continue living in your house, arranging all the details in the sales contract.
For example, moving out on a specific date and paying rent until then. Or deducting a calculated amount from the purchase price, or (most of) the payment only being made on that date, etc. I have thought about something like that myself.
It would definitely be beneficial since we would then have higher equity from the sale. That would give us a strong position for the new financing. Are there any people here, or does anyone know someone, who has done something like this before?
I can imagine finding buyers who would agree to such an arrangement. The housing market is quite limited at the moment, especially for nearly new houses, and ours offers some nice features.
But I always wonder what happens if something gets damaged during that period. Most structural issues are covered by warranty, of course, but what if a child draws on the wallpaper or dents the stairs, for example?
kati1337 schrieb:
I wonder what you do in cases where something gets damaged in the meantime. Most structural elements still have a warranty, of course, but what if the child draws on the wallpaper or dents the staircase or something similar. The same as in a rental apartment: repair the damage yourself—for example, repaint—and if necessary, claim it through liability insurance if you or your child caused it.
Otherwise, the landlord is responsible for major issues like a broken roof, heating, or water problems in the house.
If the house meets your requirements and the price is fair, I would consider such a deal for an almost new house. As you said: the market is very tight.
Chloe83 schrieb:
You can continue your current loan for the new house and possibly increase it, if your bank allows that.
We happened to still owe 380,000 euros (about 420,000 US dollars) on our condominium, but we paid off the loan early and covered the prepayment penalty.
For the new house, we then took out a new loan with a significantly better interest rate.
You need to calculate what is more cost-effective for you. Sometimes a better interest rate offsets the prepayment penalty. Currently, interest rates are generally rising again. Therefore, I would suggest keeping expectations more realistic here 🙂
M
motorradsilke30 Dec 2021 07:02Yaso2.0 schrieb:
But the buyer would have to take over their terms exactly as they are.
And with today’s interest rates... Although, of course, I don’t know what rate Kati financed at.
Probably no one would take over my 1.79% from 5.5 years ago 🙂Definitely not. But Kati has just recently built, so I would expect a lower rate.