Hello,
here’s a somewhat "unusual" topic. How did you manage to fundamentally decide between an apartment (condominium) or a house for yourselves? And in the end, how did you manage to put your name on the loan agreement for a construction project, where you are basically always an amateur but financially have to compete at the highest level? I have been following for a long time, and good offers come and go. I just can’t seem to overcome the feeling of uncertainty. Am I the only one struggling with this?
here’s a somewhat "unusual" topic. How did you manage to fundamentally decide between an apartment (condominium) or a house for yourselves? And in the end, how did you manage to put your name on the loan agreement for a construction project, where you are basically always an amateur but financially have to compete at the highest level? I have been following for a long time, and good offers come and go. I just can’t seem to overcome the feeling of uncertainty. Am I the only one struggling with this?
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pagoni202028 Jun 2020 22:45Unsure schrieb:
Hindsight is always 20/20, and buying over the phone? Sure, if you’re Rockefeller. It can also end sadly with a worthless property. As an average person, you can only afford to make mistakes like that once or not at all. For people like me, who don’t have expertise in this area, that’s basically suicide. Good that you think so, @Unsure. Others sometimes do the same kind of risky moves. With rejections, viewings, and searching, you eventually get a good feel for the whole process and can make the right decision eventually. I don’t believe in the “one and only” option anyway, but rather that you can create something you like out of what you find. In my opinion, it’s more helpful to free yourself from rigid criteria because often you don’t even know that you might actually like this or that.
If you search systematically over a longer period, having an increasing market overview definitely helps in making a well-informed decision. Moreover, we didn’t have to think long about which offer to enter in the bidding process – unlike some competitors, we were very familiar with the land prices in the area. Searching and also failing helped a lot.
For us, the fundamental decision and thus the "commitment to purchase" was ultimately a matter of alternatives – the rental market in Berlin is challenging and is not getting easier under the RRG government, the market for houses to rent is tight, and the market for truly nice houses for rent is practically non-existent. In the end, it came down to buying or building. The land fell into place first, so building it was.
After that, we tried to minimize risks for ourselves – reputable home builder, personal references, majority of the construction sum paid only after handover of the house. Of course, it remains a concentrated risk, but you have to find ways to manage it.
For us, the fundamental decision and thus the "commitment to purchase" was ultimately a matter of alternatives – the rental market in Berlin is challenging and is not getting easier under the RRG government, the market for houses to rent is tight, and the market for truly nice houses for rent is practically non-existent. In the end, it came down to buying or building. The land fell into place first, so building it was.
After that, we tried to minimize risks for ourselves – reputable home builder, personal references, majority of the construction sum paid only after handover of the house. Of course, it remains a concentrated risk, but you have to find ways to manage it.
I had a conversation with an independent financial advisor earlier this week. I was exploring the limits here. I would like to present this with more time this evening to get your feedback. I have the opportunity to obtain a mortgage certificate, including the necessary proof of equity, etc. Would this give me a strong advantage in a "spontaneous" home purchase, or is it just meaningless paperwork/marketing gimmick?
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hampshire1 Jul 2020 10:33Only engage in transactions that you understand, or whose potential negative consequences do not concern you. Do you understand how the offer works?
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nordanney1 Jul 2020 10:36Unsure schrieb:
Mortgage certificateWhat is that supposed to be, and what information does it contain?