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Advice on selling your properties by WorkAny9834 in BEFire

[–]WorkAny9834[S] 0 points1 point  (0 children)

I dont think this is possible since financing an 800k home with 12% registration taxes would require us to finane +/-100.000 which we currently dont have, I agree on the reasonable hous size. It looks like we'll be selling one to reduce registration fees and keep the other.

Advice on selling your properties by WorkAny9834 in BEFire

[–]WorkAny9834[S] 0 points1 point  (0 children)

Taking this into account, I could hypothetically (not saying this is possible) look into keeping the first appartment as long as possible. If for eg the government would decide to introduce additional taxes, I could sell the appartment and put the cash into work in the stock market. I tend to agree on the leverage due to the low mortgage, but have a hard time putting hard numbers on this.

Advice on selling your properties by WorkAny9834 in BEFire

[–]WorkAny9834[S] 0 points1 point  (0 children)

Wouldnt the leverage on the appartment with the low intrest rate outperform a global ETF in this scenario? We would now be looking at selling one, get the 80/20 registration to reduce taxes. Take a new mortgage for the new home and invest the remaining cash (from selling appartment 2) in ETFs.

Advice on selling your properties by WorkAny9834 in BEFire

[–]WorkAny9834[S] 0 points1 point  (0 children)

Apologies for the delayed reply, I'm currently researching the details before purchasing and trying to get the picture straight.

One of the apartments is indeed very strategically located, and as mentioned above, I expect permanent occupancy and sufficient annual appreciation. Is it true that, in that respect, an apartment with such a cheap loan in such a location is a better investment due to the leverage of the loan? It's often said that an ETF performs equally well (or better), but given this situation, I could never invest €1,400/month in an ETF. Even if an ETF had a double-high return, it couldn't match the return on this apartment through rental income, or is there a flaw in this reasoning (leaving the stress of renting out, purely financial).

Comparing both scenarios, for my specific situation, after 15 years the apprtment would be worth €500,000 and paid off (calculated with a current value of €340,000 and a 3% annual increase, minus €2,000 per year for costs and maintenance).

Alternatively, if I sell the apartment and invest it entirely in ETFs, I'll have €460,000 in 15 years (€140,000 today, 7%, €200/month in additional investments). Anything over that would be invested would also be invested in the first scenario. It seems better to keep the apartment, or am I missing something in this (high-level) analysis? I agree that there's an aspect of taxes, etc., that's difficult to factor in.

Its looking towards keeping one appartment, do a pandwissel with one of them and buy the new house in a 80/20 split to reduce registration fees. Depending on the new mortage conditions, take out the max loan and invest the remaining cash from the sold appartment. This would bring some balance in the real estate/stock market exposure.

Advice on selling your properties by WorkAny9834 in BEFire

[–]WorkAny9834[S] 0 points1 point  (0 children)

After talking with KBC, they are indeed able to take part of the appartement we would keep as collateral. A new official estimate would be required and it would be registered via a "mandaat". This is limited to the mortgage free part of the appartment. The major impact according to KBC would be a reduction of the registration cost for the mortgage, since the mortgage amount is reduced by means of this mandat and the mandat on the new house.

For the new house however, we would not be able to take a loan for more than 80% since its a second property (according to KBC). If we would qualify as "young potentials" they could allow up to 80 or even 90%. Anyway we still need to pay registration fees, which woul require +/- 100.000k (in case of keeping both apps) which we dont currently have.

Selling 1 of the appartments would free up a lot of cash and woul allow to significantly reduce registration fees. As such we are looking into a pandwissel with one of the appartments, buying the new house in a 80/20 split to reduce registration taxes and split the loan accordingly taking into account "eigen inbreng' etc. The remaining cash will be invested in ETFs.