“Sell half of the apartment”

Sell quickly, get money quickly, that’s what more and more want, who find at an advanced age that their own 4-walls are getting too big. Whether 3-room apartment, 4-room apartment or even comfortable 5-room and more.

Those who want quick money for the condominium, more and more often looking for “partial sale apartment”. Because one hears of many advantages: Fast, uncomplicated, no credit check. That’s true, but there is also a disadvantage, the user fee, which you pay monthly afterwards.

Quickly sell 10-50% shares of an apartment

The different sellers buy apartment shares between 20% – 50%. If the market value of your condominium is in the 7-digit range, you can sometimes sell “only” 10% of the apartment.

• Up to 1 million value = 10-50
• Over 1 million value = 10-50

Here schematically shown with 20% sold share, a 3-room apartment:

Partial sale condominium: what is it?

First, let’s start with the definition of the partial sale of an apartment.

What is the partial sale of an apartment?

As described at the beginning, you sell apartment shares between 20% – 50%. You sell the shares to a financial company. This makes you a condominium owners’ association consisting of two parties. In return you get the proportional purchase price quickly transferred, independent of banks / loans.

Fast money, sounds great or?

Whether selling in Berlin, Hamburg, Munich, Cologne or even “smaller” cities, there are advantages to paying the purchase price quickly without any credit check (compare credit at the bank). But there are also disadvantages: The user fee and likewise with the total sale.

Usage fee = rent for your apartment

After partial sale = you have to pay usage fee

The finance company becomes the partial owner of your apartment. However, you remain the sole user of the apartment. Therefore, from now on, you pay a monthly usage fee, quasi “rent” for the part of your condominium that no longer belongs to you.

Depending on the provider, this usage fee is approximately ~ 3% p.a. (per year). A simple, quick calculation of the usage fee.

• Usage fee (ETW): 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 partial purchase apartment: comparison.

This is how the financial company refinances itself.

Disadvantage? User fee vs. credit

Uncomplicated and fast money for the condo, this is a really tempting offer. That is why you should take a second look at the various partial purchase offers for apartment.

Those who resort to the really simple sales offer, quickly get money. But for this, you pay – as learned – the monthly user fee. Many use the offer because you think, I can not get a real estate loan, especially at an older age.

At the same time, a real estate loan is much cheaper! Especially at the current interest rates. Currently you pay here only 1% p.a., instead of 3% or more, as with the partial sale.

Comparison partial sale / credit:

• Partial sale / month = 250 euros
• Mortgage loan / month = 85 euros

So remember, simply put:

Real estate loans are (currently) 66% cheaper!

So it’s worth talking to your local bank and maybe 2 or 3 alternatives.

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!

• Partial sale property
• Partial sale provider comparison

Der Beitrag Partial sale apartment: disadvantages, advantages, costs – condominium partial purchase erschien zuerst auf ℄ Real Estates.

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Buying an apartment, buying a house, owner-occupation or capital investment, yield or investment property? On my new project Immobilien-Erfahrung.de you will now find everything you need to know for your successful real estate purchase! Learn everything you need to know about setting goals when buying real estate, types of locations(A, B and C locations), types of real estate, their yields and more – all online and free of charge! Now on Immobilien-Erfahrung.de:

• Return vs. real estate investment

Definition: Investment property or yield property?

So what is an investment property? And what is an investment property? Very important here is the objective. Do you want to generate a direct income through yield or rent? Or is a long-term increase in value more important to you?

Investment real estate: value enhancement over the long term

With an investment property, the aim is to achieve an increase in value over the long term. This also means that you first invest and only then sell your property at a profit and thus capitalize on it. It is not about an immediate return or renting.

The location of the apartment or house is the most important factor for the value of the property. Redevelopment and renovation also have a value-increasing effect on your property.

Here is an overview of the goals of an investment property:

• Primary: Increase in value of the property, profit from sale
• Real estate with corresponding A-location

Return on investment in real estate: Direct cash flow through letting

The primary goal of a yield property is the immediate profit after the acquisition of such a property. Ideally, these properties generate a rental return. Properties in good C-locations carry higher risks than properties in very good B-locations.

Here is an overview of all destinations:

• Primary: profit from renting
• Real estate with a rental yield of over 6%
• Real estate in C+ to B+ location

Tip: Yield real estate – advantages & disadvantages

Both the yield real estate and the investment real estate bring both their individual advantages and disadvantages. While the investment property requires a particularly large amount of capital, a yield property provides a direct income. Therefore, we recommend investing in a yield property especially in the beginning.

Advantages: Direct income & surpluses

The most obvious advantage of a yield property is the immediate income from renting it out. In addition, if there are any surpluses left over, they can be used to cover other properties in the portfolio.

• Instant cash flow
• Surpluses can offset other properties with shortfalls

Disadvantages: Higher taxes & temporary in B locations.

However, there are also two disadvantages that bring a return real estate. The first is taxes. Thus, the tax burden increases due to the additional surpluses. On the other hand, yield properties can be found only very rarely in A-locations.

• Tax burden increases
• Property rarely found in A-locations

Conclusion: Tips for beginners & advanced users

So if this is one of the first investments in real estate, we recommend a yield property. Once a solid real estate profile has been established, a combination of investment and return is recommended later.

For advanced investors: A mix of both types of investment

Der Beitrag Investment real estate or yield real estate? Advantages and disadvantages – investment forms in comparison erschien zuerst auf ℄ Real Estates.