ᐅ Selling the family home and building a new house together with your parents
Created on: 24 Sep 2019 09:34
R
Rujen12Hello,
My parents plan to build a house together with my wife and me. The background is the sale of their existing family home as well as a building plot (850m² (9149 ft²)) they own.
The family home consists of two separate apartments (each 90m² (970 ft²)) plus a basement (90m² (970 ft²)) and is located on a small plot without a garden (200m² (2153 ft²)). The house needs renovation; several things must be done (windows, insulation, old oil heating/tank, electrical system, etc.).
In all our opinions, it does not make much financial sense to renovate the house because a lot of work is required, and the prices of comparable properties in the area are very high since the neighborhood is in great demand. Above all, my parents would no longer have to worry if something needed repairs. The available building plot is located opposite the family home and has only been used as a garden so far. My wife and I currently live in a rented apartment, and my parents should stay in the family home until the new house is ready. However, the question is how to approach the sale? We have no idea, especially considering my parents’ living situation.
Of course, it would be best to use the money from the house sale to finance the new one. I can hardly imagine finding a buyer willing to wait 1–2 years for their new home and still pay a reasonable price. I would be very grateful for any tips or advice on how to handle this. Maybe someone here has experienced a similar situation.
My parents plan to build a house together with my wife and me. The background is the sale of their existing family home as well as a building plot (850m² (9149 ft²)) they own.
The family home consists of two separate apartments (each 90m² (970 ft²)) plus a basement (90m² (970 ft²)) and is located on a small plot without a garden (200m² (2153 ft²)). The house needs renovation; several things must be done (windows, insulation, old oil heating/tank, electrical system, etc.).
In all our opinions, it does not make much financial sense to renovate the house because a lot of work is required, and the prices of comparable properties in the area are very high since the neighborhood is in great demand. Above all, my parents would no longer have to worry if something needed repairs. The available building plot is located opposite the family home and has only been used as a garden so far. My wife and I currently live in a rented apartment, and my parents should stay in the family home until the new house is ready. However, the question is how to approach the sale? We have no idea, especially considering my parents’ living situation.
Of course, it would be best to use the money from the house sale to finance the new one. I can hardly imagine finding a buyer willing to wait 1–2 years for their new home and still pay a reasonable price. I would be very grateful for any tips or advice on how to handle this. Maybe someone here has experienced a similar situation.
N
nordanney24 Sep 2019 09:39Rujen12 schrieb:
I can hardly imagine finding a buyer who would wait 1-2 years for their house and still pay a reasonable price.In a good location, buyers will practically walk through the city center barefoot if that’s what you want. Such a deal is generally feasible (I even did this with my ex a few years ago – we rented the sold house during that time). Alternatively, you can get bridge financing from any bank, which is repaid through the sale in 1-2 years.
So you are building with people to whom you have a legal heir entitlement relationship, and they are contributing the land for a house into the joint project, where you and your wife want to live as one party and they as the second party. I would like to offer an unsolicited piece of advice: consult a tax advisor who is also qualified as a lawyer. To me, this situation clearly suggests that the parents contribute both properties (the developed plot for sale and the building plot) into a property partnership (probably best as a GbR here), which then grants you and your wife the building plot under a long-term leasehold. I would include in the lease agreement that the financial rent is reduced in exchange for granting a right of residence. Without this, in transactions along a direct line of inheritance, one could end up being taxed twice on the same money, once going out and once coming back.
NOT LEGAL ADVICE, just a story from Erwin Lindemann’s life with no guarantee that it isn’t made up *LOL*
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
NOT LEGAL ADVICE, just a story from Erwin Lindemann’s life with no guarantee that it isn’t made up *LOL*
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
I have also seen listings for houses that are for sale but won’t be available until a year from now. That’s definitely possible.
You haven’t mentioned the intended ownership structure of the new house. It sounds like the parents are contributing the majority, including the land and the purchase price of the old house. So, will they be the sole owners of the new house, and you pay rent? In that case, there wouldn’t really be a need to go through the hassle of a joint ownership agreement (partnership or similar).
Do you have any siblings?
You haven’t mentioned the intended ownership structure of the new house. It sounds like the parents are contributing the majority, including the land and the purchase price of the old house. So, will they be the sole owners of the new house, and you pay rent? In that case, there wouldn’t really be a need to go through the hassle of a joint ownership agreement (partnership or similar).
Do you have any siblings?
Similar topics