Over the years, unfortunately (and not only in my case), the value/prices for houses and land have risen to unprecedented levels.
Therefore, the property I live in (house with land) now has a value exceeding 400,000 € (approximately 440,000 USD).
This means that the tax exemption for inheritance is exceeded.
I now intend to transfer ownership of the above-mentioned property to my son.
(A guaranteed lifelong right of residence will, of course, be contractually agreed upon.)
Now to the question:
Should I sell the property to my son (no actual money needs to change hands),
or should I gift it to him?
Are there advantages or disadvantages to either option, or is it financially the same?
What about notary fees?
Has anyone done this before?
Maybe someone knows more than I do, so
... thank you in advance ...
Therefore, the property I live in (house with land) now has a value exceeding 400,000 € (approximately 440,000 USD).
This means that the tax exemption for inheritance is exceeded.
I now intend to transfer ownership of the above-mentioned property to my son.
(A guaranteed lifelong right of residence will, of course, be contractually agreed upon.)
Now to the question:
Should I sell the property to my son (no actual money needs to change hands),
or should I gift it to him?
Are there advantages or disadvantages to either option, or is it financially the same?
What about notary fees?
Has anyone done this before?
Maybe someone knows more than I do, so
... thank you in advance ...
Höhlenmensch3 Sep 2021 18:54@nordanney
Warning, the following post is not satire and only represents my personal opinion. So, sorry in advance!
Okay—I might be posting from the wrong location. (You already limited it to metropolitan areas)—(Berlin) Here, it’s not due to the excessive demands of homebuyers, and we can’t all just move away. (I’ve heard there are still some affordable places in Siberia ;-))
Not only on the outskirts of the city but also in the surrounding commuter belt, it is no longer possible for average consumers to buy land and build at reasonable prices without going heavily into debt.
And farther away, it’s not very practical to have a 100 km (62 miles) commute to work each day. (Leisure time apparently no longer counts nowadays.)
Many people I know basically work only to pay for their house and garden. So here are a few facts:
Of course, I know everyone profits from this, which is understandable. But here in my area, a plot of land (850m² (9140 sq ft)) was sold for 550,000, and the realtor earned a commission (7.15%) of about 39,000, which to me seems out of proportion.
The plot was shown to 6 interested parties (1 hour each) until it was taken. Everyone should earn their money, but the balance has clearly shifted a lot over the past years. (Since the house was added afterward, the bank halted things and the plot was subdivided.)
With a building phase II/2 and a floor area ratio of 0.209 on 425m² (4570 sq ft), there’s not much room left for 120m² (1290 sq ft) of building!
Due to the way architects are paid, their focus is often not on cost-effective solutions.
Again, everyone deserves to earn their living, but politics shouldn’t keep claiming to represent the interests of the “average person” while ignoring these realities.
I know (it’s no secret, especially here in Berlin through the press) and it might be a bit polemical, but the fact that our Health Minister, right now during the Corona crisis in February, was mainly concerned with buying a villa for 4.15 million (and also purchased two condominiums) makes me suspect that politicians often have different priorities than creating laws that could help control costs.
Luckily, this is a house-building forum; otherwise, I could go on for much longer—and the admin would have to order even more storage space.
Because of these prices, I’ve only now realized the true value of my property, which is why I wrote the initial post.
The best option would be to sell the property and then post updates from a yacht in Bermuda, but that kind of change isn’t for everyone, especially at an “advanced age,” so the value doesn’t really do me much good.
With that in mind, I wish everyone the best in possibly realizing both goals (a home here—and a yacht in Bermuda).
;-)
Warning, the following post is not satire and only represents my personal opinion. So, sorry in advance!
Okay—I might be posting from the wrong location. (You already limited it to metropolitan areas)—(Berlin) Here, it’s not due to the excessive demands of homebuyers, and we can’t all just move away. (I’ve heard there are still some affordable places in Siberia ;-))
Not only on the outskirts of the city but also in the surrounding commuter belt, it is no longer possible for average consumers to buy land and build at reasonable prices without going heavily into debt.
And farther away, it’s not very practical to have a 100 km (62 miles) commute to work each day. (Leisure time apparently no longer counts nowadays.)
Many people I know basically work only to pay for their house and garden. So here are a few facts:
Of course, I know everyone profits from this, which is understandable. But here in my area, a plot of land (850m² (9140 sq ft)) was sold for 550,000, and the realtor earned a commission (7.15%) of about 39,000, which to me seems out of proportion.
The plot was shown to 6 interested parties (1 hour each) until it was taken. Everyone should earn their money, but the balance has clearly shifted a lot over the past years. (Since the house was added afterward, the bank halted things and the plot was subdivided.)
With a building phase II/2 and a floor area ratio of 0.209 on 425m² (4570 sq ft), there’s not much room left for 120m² (1290 sq ft) of building!
Due to the way architects are paid, their focus is often not on cost-effective solutions.
Again, everyone deserves to earn their living, but politics shouldn’t keep claiming to represent the interests of the “average person” while ignoring these realities.
I know (it’s no secret, especially here in Berlin through the press) and it might be a bit polemical, but the fact that our Health Minister, right now during the Corona crisis in February, was mainly concerned with buying a villa for 4.15 million (and also purchased two condominiums) makes me suspect that politicians often have different priorities than creating laws that could help control costs.
Luckily, this is a house-building forum; otherwise, I could go on for much longer—and the admin would have to order even more storage space.
Because of these prices, I’ve only now realized the true value of my property, which is why I wrote the initial post.
The best option would be to sell the property and then post updates from a yacht in Bermuda, but that kind of change isn’t for everyone, especially at an “advanced age,” so the value doesn’t really do me much good.
With that in mind, I wish everyone the best in possibly realizing both goals (a home here—and a yacht in Bermuda).
;-)