Hello dear professionals,
I have an idea that I can’t get out of my head. I want to buy a plot of land inexpensively and build a new house on it. So far, so good, but my main concern is something else. It is very important to me that everything is done as cheaply as possible since I can only invest about 25,000 euros (27,000 dollars) of my own capital. I have a job where there isn’t much room to earn more. That’s why I want to make the best out of it. I will simply take out the loan I am entitled to (around 200,000 euros (215,000 dollars)) and make the best of it!
My plan
Since my brothers and I are quite skilled in craftsmanship, we want to do as much of the work ourselves as possible.
Building plan
We are thinking of a rectangular plot of land, built on roughly half of it. The house should have simple square rooms, and we are considering two floors with a flat roof.
We prefer large rooms rather than many small ones.
The further plan
Once the house is finished, I want to sell it to increase my equity.
If the plan works out and I gain enough from it, I will have gathered experience and have architecture ready that I can use for a second project, maybe even a third, and eventually have enough equity to build a larger house for myself.
What do you think about this?
(Tips, ideas, how can I do this as cheaply as possible? Etc.)
Thank you in advance
I have an idea that I can’t get out of my head. I want to buy a plot of land inexpensively and build a new house on it. So far, so good, but my main concern is something else. It is very important to me that everything is done as cheaply as possible since I can only invest about 25,000 euros (27,000 dollars) of my own capital. I have a job where there isn’t much room to earn more. That’s why I want to make the best out of it. I will simply take out the loan I am entitled to (around 200,000 euros (215,000 dollars)) and make the best of it!
My plan
Since my brothers and I are quite skilled in craftsmanship, we want to do as much of the work ourselves as possible.
Building plan
We are thinking of a rectangular plot of land, built on roughly half of it. The house should have simple square rooms, and we are considering two floors with a flat roof.
We prefer large rooms rather than many small ones.
The further plan
Once the house is finished, I want to sell it to increase my equity.
If the plan works out and I gain enough from it, I will have gathered experience and have architecture ready that I can use for a second project, maybe even a third, and eventually have enough equity to build a larger house for myself.
What do you think about this?
(Tips, ideas, how can I do this as cheaply as possible? Etc.)
Thank you in advance
N
nordanney30 Apr 2014 07:44ypg schrieb:
Edit: Capital gains tax applies within 10 years (to my knowledge, possibly outdated??!). So, you need to have been the owner-occupier for 10 years to avoid paying this tax.This only applies to non-owner-occupied properties. For owner-occupied homes, as far as I know, you must have lived in the property during the year of sale plus the two preceding years.Or you have lived in the property continuously since the installation of the system; in that case, no tax applies even if the 2-year period is not met.
- This excludes assets that were used exclusively for personal residential purposes between acquisition or completion and sale, or were used for personal residential purposes during the year of sale and the two preceding years;
N
nordanney30 Apr 2014 08:40hetjam9 schrieb:
Or you have lived in the property continuously since the system was installed, in which case no tax applies even if you sell before two years.
- Exempt are assets that were used exclusively for personal residential purposes during the period between acquisition or completion and sale, or were used for personal residential purposes in the year of sale and the two preceding years;
Section 23 Income Tax ActLearned something new again 🙂
hetjam9 schrieb:
Alternatively, if you have lived in the property since the installation of the system, no tax is due even if you fall short of the 2-year period.
- This excludes assets that are used exclusively for personal residential purposes during the period between purchase or completion and sale, or in the year of sale and the two previous years for personal residential purposes;
§ 23 Income Tax ActThanks for the information 🙂
ypg schrieb:
Edit: Capital gains tax applies within 10 years (to my knowledge, possibly outdated??!). So, you need to be the owner-occupier for 10 years to avoid paying this tax.No guarantee, but @nordanney confirms:
Commercial properties (i.e., not owner-occupied) can be sold tax-free after 10 years or transferred into private assets. After another 10 years in private assets, the property(ies) can again be sold tax-free.
If you occupy the property yourself, this applies after 2 years. Otherwise, every private homeowner could potentially be tied to their property for up to 10 years, which would have significant effects on other areas (e.g., the labor market and consequently the construction industry).
Best regards,
Dirk Grafe
P.S.: @ypg: saw this too late, was redirected to the first page ...