5D·

Out of shares, into your own home!

I would like to ask the knowledgeable real estate owners but also everyone in general what you think of our plan.

We have been living in a very nice and now completely renovated and modernized old apartment for rent for 11 years.

Our landlords now want to sell and approached us first. I think the price is totally fair for the location, furnishings and the fact that virtually everything in the apartment has been redone in recent years.

(77sqm old building 4 rooms, 1 is a breakthrough. Large basement for home gym.

Community garden in the backyard.

2015 floors restored, new power lines and distributors, new wallpaper and in the high hallway new ceiling (hanging lower), completely new windows. 2018 Bathroom and kitchen modernized.

2021 new double sized balconies and new gas boiler).

Purchase price: 200.000€

Offer from the agents: € 70,000 in one go, the rest over 10 years in installments directly to them, interest-free and flexible.

My current portfolio provides exactly this one-off payment and the ancillary purchase costs plus a small cash buffer for any repairs that may be necessary.

With the installment to the agent and the house payment, we are €300 below the current rent + savings rate.

I should also add that we are well established here with jobs and a child and the apartment fulfills all our wishes. A possible termination due to personal use by the potential new landlord would hit us hard. The rent is currently still low but could be increased by 15% every 3 years over the next 9 years, only then would it reach the local rate. Which is what I would assume with new landlords.

For me, this is a very good offer, it just leaves me without any capital investment. Which not only takes away my return, but also one of my hobbies. At least for the next 10 years until I have paid off the apartment.

What do you say? Go ahead and sell everything to live rent-free in 10 years?

Thank you very much for reading and I would be grateful for any comments or objections :)

02.01

Vanguard FTSE All-World ETF

Sold x394.73 at €141.02

€55,665.39

35.87%

115

63 Comments

John@Doe

I would do it, it sounds very fair. If you're even living below your previous rent, all the better. Then it's interest-free and flexible. 👍🏼

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AI sagt@GoDividend

Buy it and live carefree. You can fill up your deposit again and, in your situation, even more than before

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All-in-or-nothing@All-in-or-nothing

In my view, interest-free is absolutely the decisive criterion here. If you have to finance it, it has already been proven countless times that an owner-occupied property of any kind is unfortunately nonsense.🤷🏼‍♂️ Even if many people, including myself, would not want to do without something like this in their lives.

So, from my point of view too: do it if the apartment and everything around it suits you!

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Klein-Anleger@Klein-Anleger

I would definitely accept the offer! €200,000 is hard to find these days... if I get an offer at any time, I'd be really happy.

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Schroedy@Schroedy

I would accept anything interest-free immediately, as long as the price is right of course.
The whole deal sounds very good and shows that there are still landlords out there who don't always just look at the money.

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Olli@Olli68

Is there only one owner for the whole house or several? Then be sure to check the minutes of the owners' meetings.
The offer sounds very tempting, but it can be expensive if there were or are problems in the community of owners.
Simply writing "do it" here is a bit naive.

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Jakob C.@Creutzfeldt_Jakob

As all the previous speakers have already written: Do it. We bought a house 5 years ago and I would do it again and again. Even though I'm sure people can tell you what you'll have to add on top of that due to regular maintenance costs etc., I'd never want to miss the feeling of owning something. Above all, you also have the apartment as an investment; real estate always rises in price in the long term.

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Silas@SiIas

13H

@Creutzfeldt_Jakob "Real estate always rises in price in the long run." hahah exactly my sense of humor. In real terms, they can also fall for the rest of your life. Take a look at the real history. After costs anyway. I'm only referring to the statement, not the "lifestyle decision to own a home".

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Jakob C.@Creutzfeldt_Jakob

10H

@SiIas Of course, if you get yourself a bum bunker in Buxtehude and you let it rot, the thing might not be worth anything at some point. Otherwise, property prices will rise over the years, of course. I don't know what you want from me now 🤷🏼‍♂️

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Alex@nitroxx

Personally, I wouldn't sink any more money into my own home, rented out yes, owner-occupied no.

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user0e3jddwsjxu@user1d7gf8465j461735

@nitroxx warum?

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Alex@nitroxx

@user1d7gf8465j461735 You tie up a lot of capital in one place, in my case an EFH on 1000 square meters, you are tied to one location, you actually always have something to maintain or repair. The costs are disproportionate to the benefits.

It's not like your parents or grandparents after the war, when you could build a house for a pittance. You're sinking almost half a million...

I now see it as a burden and because you've invested so much time, money and brainwork, it's not easy to sell emotionally.

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Danone1986@Danone1986

These are your experiences with your object. Each situation must be considered separately. 200k is manageable, renovated and interest-free. According to his calculation, he even saves 300€ a month. That's pretty good, and I say that as someone who would never tie himself to a mortgage in the form of a property.

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MarTheRadi@marda304

Would seem strange to me. Why would they give an interest-free loan? I would ask for the real running costs of the last few years and also ask about the new property tax. As a long-term tenant, you may be able to estimate what investments are due.

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Wealth-Accelerator@Wealth-Accelerator

Definitely sounds like: do it!

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Solitair@Solitair

Sounds fair, I would do it. The landlords probably think that they'd rather sell stress-free to someone they already know and has paid their rent reliably so far and be a little more accommodating with the price. I can understand that very well

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Dividendenopi👴@Dividendenopi

As someone who also lives in a debt-free home, I can understand your request and if you feel comfortable with the offer, then go for it. For me, however, buying an apartment would be out of the question, both as an owner-occupier of a single-family home and as a landlord. I enjoy my "freedom" and self-design and my garden and I can do almost anything I want. Owners' meetings can be worse than any parent-teacher conference, do you know the composition of owners? Then live as an owner in the midst of tenants.... Immediately after buying, you'll get a different view of things in terms of communal property and how to deal with the rental property. High ceiling in the hallway.... suggests an "old building". What about future energy-related renovations? Heating has been done and windows. The roof and façade send their regards. God knows, I don't want to be a naysayer, but I might include the aforementioned points in your euphoria. Otherwise, of course, have fun and good luck in the old new condominium

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He-Man D.@He-Man

Hi there.
Everything sounds great. But there may still be a high cost factor in terms of renovation. The roof. When was it last done?

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BeachPlease@BeachPlease

There will be a reason why the current owner is "only" asking for 200k.

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Wealth-Accelerator@Wealth-Accelerator

@BeachPlease
Maybe because he doesn't want to add an estate agent on top for a net 10% more income and has perhaps learned to appreciate the loyal tenants who have never caused him any stress?

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BeachPlease@BeachPlease

@Wealth-Accelerator No, that's not how it works. It's one thing to set the rent lower so that tenants feel comfortable. The fact that you are apparently selling far below value is another. Before signing, I would definitely talk to the property management about upcoming renovations and have them show me the reserve account.

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Wealth-Accelerator@Wealth-Accelerator

@BeachPlease
That in any case! Nevertheless, I can imagine that there is a bit of good will involved.

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BeachPlease@BeachPlease

@Wealth-Accelerator There are still supposed to be kind-hearted people 😌

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Sven@Nursoneidee

One factor to be able to assess whether 200k is too much or suspiciously little is missing here, .....the location. Even if you can now often hardly find anything up to 200k even in rural areas.

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PaulPaulsonle@PaulPaulsonle

Hello, we had a similar situation because we had to extend our house.
After a very long period of survival, I came to the decision to take out a loan so as not to spend all of my equity, which is largely invested, on it.
Find out what you would have to pay for a loan of €35,000, for example.
Then you would still have a decent deposit and still have the property.
And yes, I know the interest at the bank costs money, of course.
I can only say from my point of view that it was exactly the right decision.
And believe me, I've been struggling with this question for a long time and nobody can tell you what the right thing to do is.
Grüßle✌️✌️

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Stulle 🥪@Stullen-Portfolio

@PaulPaulsonle
Those were also my thoughts on this.
It certainly sounds like something you should do, @SatoshiNakamo.

With the type of implementation, I would also check whether a 50 or 100% loan for the 70,000 could be considered. The interest on this should probably be lower than your average return, right?

Greetings
🥪

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ehrlichergauner@ehrlichergauner

@PaulPaulsonle I do it similarly: pay off the loan every month and still invest. As long as the interest rates are below the "usual" market yield, it makes sense... at least I would say so.

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Schmon@SchmonInvest

Congratulations, sounds very good

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RHPG@Rentner

I would also do it. The question remains how many owners or apartments are in the house and is there any housing benefit. The roof also has to be done, etc. Notary costs too...the situation can't be assessed like this. Good luck!

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DocTrader@value_crafter_1628

Do it in any case! The conditions are sensationally good - and speak for your pleasant character - otherwise the owner would not have made you such an offer, including an interest-free loan!
Always remember: an owner-occupied property is also an asset class. Good luck and happy life!

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Wealth-Accelerator@Wealth-Accelerator

Mhh... my post from earlier was first duplicated and then gone. So here we go again.

The landlord would apparently be happy if the deal went through the short official channels.
So I would make him a slightly adjusted counter offer, for example:

40,000 direct and the remaining loan for 12 years. And then you can keep half the deposit and it feels really good.

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Abteilungsleiter D.@AbteilungsleiterDerLiebe

Do it immediately if it fits. Possibly one more point: the apartment is in a house? What needs to be done there (heating, repairs, etc.)? There must be a reason for the favorable conditions somewhere. In any case, fix the payment method in writing.

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Sparfuchs@Der_Sparfuchs

If all the parameters are right, a good contract can be drawn up with the selling party and you can get the apartment you already live in and have felt comfortable in for years, why not buy it? I think owning your own home is a great thing. With owner-occupied property, it's not so much the financial aspect that plays an important role as the personal and emotional aspect (as long as the property can be financed, of course).

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Jurboss@Jurboss

I don't really think much of buying real estate as an investment or to build up wealth. But with this offer, I would go for it. If all the conditions are right for you, it's great. You have to be happy.

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SPV-Paule@SPV-Paule

I wouldn't think twice and buy it if your descriptions are accurate.

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EN-SX@en-sx

Sounds perfect! Go for it!

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Jens@Helper84

Definitely do it.
I was in a similar situation and can only recommend it.
1) I bought my former 2-room apartment from my landlady 13 years ago and lived in it myself for many years. Now I rent it out.
2) I liquidated my deposit 6 years ago as a down payment for our newly built EFH in a good location. Quality of life is priceless. Since then, I have been saving in the deposit again.

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