Skip to main content

wrong about the house loan

The bank guy just came. He offered us a loan but the terms were not as good as we had hoped. The rent on the house will not pay the house off. In fact, to pay the house off in 30 years we would need to pay additional money per month (over the rent). And to pay the house off in 15 years (when we retire) we would need to pay 1000 Euro per month over the rent (killer)! It's very bad news for us! Each month we would lose money on this house, and be responsible for renovations and maintenance. It's really a bad deal to have it as a rental house. It's better to sell it at a loss. But we have no buyer. We have until Monday to sign a new loan. We needed a few days to think about what we should do. Honestly , we asked until Monday hoping for some kind of miracle. If we could just have a buyer it would be such a gift! But the other option is to rent for a few years, then try to sell when the market improves. They say Germany is heading into a recession. Know one is buying houses right now. So maybe if we hold on to it for a few years, then try again when the environment improves? That would be our best option right now. So if we find no buyer in the next few days, we need a good renter for say 3-5 years. Perhaps that would be the best move? We need wisdom. I know none of this is a surprise to God. He has the big picture. I am blind but He see's it all! Juergen show's the house to the Solar company that wants to use it as a guest house. We got more information about the company. They are from Spain and spend over 5000 euro per month on hotels. This is why they are looking for a house to rent. They are starting a new branch in Heidelberg. They don't want to buy something because the business may not make it. But they would give us a larger then normal deposit as security. If they decide to rent from us, it's probably our best option. Perhaps we will know tomorrow.
I think I would be fine with renting for a short term (until the market improves). I think this is our path!

Comments

Did you accept the loan that was offered to you? If you accepted it, then having a rental house would be a better choice than selling it for a loss. Having income every end of the month would be enough to help you save money to pay your debt or to spend for future expenses. Don't worry, good times will come for you, if you are patient.

Avril Copperfield
Abdul said…
It's been 8 months since you wrote about your house loan. Has someone bought your house? And did you accept the loan that was offered to you? I hope someone did buy your house. It would help you a lot with your daily expenses back then. Anyway, how's life going so far?

Abdul Jackson

Popular posts from this blog

chicken coop idea

Why not start with an IBC and cut a hole for the door? You could build closed laying boxes into it, and something for the chickens to roost on. Put some straw or saw dust on the floor. You could add vents to the side for air. If it sat inside a chicken run that you can walk into, the chickens could be safe, dry and happy. I have an extra IBC. Maybe this could be my chicken house? I bet I could even plant the outside of it with mud and grass for extra insulation and good looks.

The Opel Agilia

I think I don't want to spend the money for the VW New Beetle. It's a very cute and safe car, but cost about 17,000Euros new. I can find it for 13,000Euros (this is the most basic model) but that's more then I would want to spend. I don't really drive that much. I'm pretty cheep at heart. I need real value for my money. I keep thinking we really should take advantage of the money Germany is offering to trade old cars in for 2500Euros towards a new car. If I buy a car that's around 10,000 Euros, then the Government is actually going to pay 25% of the cost of that car. That's really a very good deal. Since I know I will need a new car in the near future, I feel I should get a new 10,000 Euro car. The Opel Agilia is around 9,900 Euros. It's got 5 doors, and room for 5. It is pretty safe, and comes with a 6 year warranty. I would not call it my dream car, but I could easily afford it. I'm trying to be wise here. There are other cars in thi