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Old 11.02.2012, 19:53
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Buying a house and renting... on B permit.

Hello,

I read few threads about buying and as I understand if I have a B permit (EU in my case)
I have live in a house that I bought. However what's the situation if I'd buy a mehr-familien house? So in typical old buildings in my area there are 3 apartments in such house.
So considering that I'd live in one of them could I rent other two out?
Any idea where I could get some more information about this?

Regards,
Jacek
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Old 11.02.2012, 20:05
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Re: Buying a house and renting... on B permit.

You will need to get a different type of mortgage which usually required 40% deposit, you can not use your pension as part of the deposit for a rental property and you still need to prove you can pay the mortgage if the other apartments are empty.

Best bet is to go talk to your bank and see if you can negotiate any of these points.
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Old 11.02.2012, 20:13
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Re: Buying a house and renting... on B permit.

Thanks for that, I have to admit though if there are any law related problems rather than mortgage?
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Old 11.02.2012, 20:34
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Re: Buying a house and renting... on B permit.

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Thanks for that, I have to admit though if there are any law related problems rather than mortgage?
I don't know about the law issues. We didn't have any legal issues when we were looking into this, only mortgage issues.

I'm sure someone who knows better will be by any minute.
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Old 11.02.2012, 20:56
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Re: Buying a house and renting... on B permit.

And maybe you don't even have mortgage issues. I saw nothing in my mortgage agreement preventing rental. i guess when you go to the bank, they will let you know any problems.

Last edited by Phil_MCR; 11.02.2012 at 21:12.
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Old 11.02.2012, 21:01
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Re: Buying a house and renting... on B permit.

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And maybe you don't even have mortgage issues. I saw nothing in my mortgage agreement preventing rental.
Have you asked them the question? Did you use any of your pension fund for the deposit?
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Old 11.02.2012, 21:03
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Re: Buying a house and renting... on B permit.

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And maybe you don't even have mortgage issues. I saw nothing in my mortgage agreement preventing rental.
You bought a residence. He wants to buy a commercial property.

Did you mortgage mention it's as your primary residence? There are also different conditions on holiday home mortgages. But the rental thing is usually restricted by your pension fund.

These are two different issues:
1. commercial leases and holiday home leases usually need more funding and generally doesn't allow use of pension funds for deposit
2. with a home/primary residence the issue with renting is related the use of your pension fund for a down payment. That can only be used for your primary residence.
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Old 11.02.2012, 21:07
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Re: Buying a house and renting... on B permit.

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Hello,

I read few threads about buying and as I understand if I have a B permit (EU in my case)
I have live in a house that I bought. However what's the situation if I'd buy a mehr-familien house? So in typical old buildings in my area there are 3 apartments in such house.
So considering that I'd live in one of them could I rent other two out?
Any idea where I could get some more information about this?

Regards,
Jacek
just re-read your post. i also bought a mehrfamilien house. wasn't a problem. i paid only 20% deposit.

if there is one bigger flat, then they might insist that you live in the bigger one - but i'm not sure if this is law, or the grundbuchamt's weird interpretation - they were a bit behind in the law on a few other points and the federal guys had to correct them a few times.
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  #9  
Old 11.02.2012, 21:08
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Re: Buying a house and renting... on B permit.

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Have you asked them the question? Did you use any of your pension fund for the deposit?
no and no.
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Old 11.02.2012, 21:12
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Re: Buying a house and renting... on B permit.

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no and no.
Well, there you go. As I wrote above, the restrictions on renting are related to use of pension fund. However, if you do rent out your home and the bank deems it a "commercial property" and no longer your primary residence they can ask for you to pay up more %. Commercial properties usually required 40% down. How negotiable that is I would guess probably varies some.

ETA: reading your other post, it seems your property was not deemed a commercial property. Anyway, the OP really needs to go discuss with the bank and the pension fund if required.
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Old 11.02.2012, 21:12
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Re: Buying a house and renting... on B permit.

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no and no.
You probably have to tell the lender & any insurer that your renting, don't expect as good rates as an owner occupier. If you have a fixed rate it could be expensive!
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Old 11.02.2012, 21:19
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Re: Buying a house and renting... on B permit.

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You probably have to tell the lender & any insurer that your renting, don't expect as good rates as an owner occupier. If you have a fixed rate it could be expensive!
insurance is a good point. when you have other people on your property, you need to make sure you're properly covered. but i think the normal required insurance covers you in any case, but best to check with the insurer!
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Old 11.02.2012, 21:33
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Re: Buying a house and renting... on B permit.

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insurance is a good point. when you have other people on your property, you need to make sure you're properly covered. but i think the normal required insurance covers you in any case, but best to check with the insurer!
Insurance & loans for your own home are a cheaper than 'commercial' loans & insurance. It's a very different risk, which is why it costs more.
Of course if you have a good plot & a crappy old house the house has a negative value so insurance may not be an issue in some cases.
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