Partial sale house: sale in old age?! Disadvantages, advantages, experience
Partial sale house 2023 – single-family house, terraced house, semi-detached house a whole apartment house and any other type of house – for many at some point the house becomes “too big” and the money “too little”. A quick, uncomplicated solution is the partial sale from the house. Does a partial sale make sense? Whether selling in Berlin, Hamburg, Munich, Cologne or even “smaller” cities, there are a few things you need to know before deciding on a partial sale. A look at the advantages, disadvantages and costs (including alternative mortgage loans). You can also find an overview of partial sale providers here. Back to Partial Sale Property.
“Selling half of the house”
Many ask the question, can I sell half of my house and still be the sole occupant? The simple answer is: Yes!
At the latest when the children are out of the house, sometimes also the partner, one’s own house quickly becomes large, sometimes too large. You don’t want to separate, but you still need money quickly. The solution for many: The partial sale.
In this guide you will learn everything important for the first step in the partial sale.
- What is partial sale?
- How much do I get for my house?
- What are the follow-up costs?
- Can I also sell everything later?
Partial sale house: what is it?
First, let’s start with the definition of the partial sale of a house.
What does partial sale of the house mean?
As already described in the article on the partial sale provider comparison, you sell a part of your house to a financial company. In return, you get the pro rata purchase price quickly transferred, regardless of banks / loans.
This makes you a community of owners consisting of two parties.
Sell 10%, 20%, 50% from the house
The different sellers buy house shares between 20% – 50%. For higher property values (7-digit) sometimes only 10% of the house can be sold.
- Up to 1 million house value = 10-50%.
- Over 1 million house value = 10-50%.
Optionally, you can also directly plan the total sale in X years. More about this later.
User fee = rent for your house
After partial sale = you have to pay usage fee
The finance company becomes a part owner. In return, you pay a monthly usage fee, “rent” so to speak, for the part of your house that you have sold. Depending on the provider, this usage fee is approximately ~ 3% p.a. (per year). A simple, quick calculation of the user fee.
- User fee (house): 3% p.a.
Formula usage fee (depending on the provider) per month:
- Monthly usage fee = 3% * purchase price (share) / 12
- = 3% * 100.000 / 12
With this you pay 250 euros per month.
User fee at 100.000 Euro = 250 Euro / month
As always, depending on the provider. All providers can be found here in the part purchase house: comparison.
This is how the financial company refinances itself.
Disadvantage? User fee vs. real estate loan
Easy and fast money for your own house, this is a really tempting offer. That’s why you should take a second look at the various partial purchase offers for houses. Why?
Those who resort to the simple offer, quickly get money. For this, pay the monthly user fee from now on. Many use the offer, because you think, I do not get a real estate loan. But they are much cheaper! Currently you pay here only 1% p.a., instead of 3% or more, as with the partial purchase.
Comparison partial purchase / real estate loan:
- Partial sale / month = 250 euros
- Mortgage loan / month = 85 euros
So remember, simply put:
Real estate loan 66% cheaper!
So it’s worth talking to your local bank and maybe 2 or 3 alternatives.
Do you have to pay taxes on the partial sale?
For the direct sale of a property you only have to consider one tax, the speculation tax. Generally speaking, speculation tax is incurred when you buy and resell a property within 10 years. Accordingly, the time at which your property is resold is important, even if it is a partial sale.
Partial sale of real estate: advantages, disadvantages, tax & Co.
Read more about partial sale here – A look at costs of use, advantages, disadvantages, the total sale, the calculated increase in value under inflation and a comparison, what is “cheaper”: partial purchase or the alternative real estate loan, more specifically the mortgage loan? In addition taxes, sale from community of heirs, divorce and much more. My recommendations for sellers!