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BUYING REAL ESTATE IN PENSION? +++

Posted on November 30, 2022January 18, 2023 by admin

All should have space: a separate room for each child, a large garden, a guest
room. But with the time the children go gradually their own ways, and it becomes
quiet in the big house. Too many rooms and the garden is a lot of work. How nice
would be now an apartment in the city or simply a new house, which is more
likely to meet the needs in old age.

It is the same with some of our customers. Sometimes the house that has become
too big is not yet completely paid off, or it is not enough to finance the new
fancy city apartment, or it is to be preserved for the children. Then the
question arises: Will I still be able to get a loan from the banks in my
mid-50s?? The answer is yes. Because older borrowers are not necessarily treated
differently by banks than younger ones. It is important that the income, such as
future pension payments are enough to pay off the monthly loan installments
without any problems. If this is the case, nothing stands in the way of a real
estate loan in old age.


PENSIONERS ARE WELCOME

Actually, banks want loans for real estate to be paid off during the borrower's
lifetime. Depending on the loan amount, however, this can be difficult for older
borrowers, since in this case the monthly repayment would be particularly high.
Therefore a comparison is worthwhile here. Because there are definitely banks
that also give loans with 15 or 20 years to 80ig year olds. The banks know that
in this case they have the property as collateral in the background. Therefore,
it is important when lending in old age, that the object of purchase also has a
corresponding countervalue. But many older people have a good credit rating and
are therefore welcome customers. Over the years, some has been saved or they can
sell another property and bring the proceeds as equity. This has an effect on
the interest conditions, because they become more attractive, the more own money
in the financing can be raised.




INAUGURATE CHILDREN

It is almost always advantageous to get the children on board with a late loan
project. If the new property is to be sold at a later date, or if one of the
children would like to move in there themselves one day? Then the children must
step in accordingly also with the loan. To avoid disagreements later on, it is
advisable to discuss such steps together.

From future plans also depends on whether the loan should be repaid as quickly
as possible for the benefit of the heirs. But it may also be that rather a low
repayment comes into question to have as much financial freedom as possible in
old age. In this case, a long fixed interest rate makes sense, especially in the
current environment of rising interest rates.


MANY OLDER PEOPLE GO ONLY TO THE HOUSE BANK

A mistake that many older borrowers make: They let themselves be advised
exclusively by their house bank. After all, one has been a customer for many
years and hopes to get the best conditions here. That would actually also be
nice, but is usually not the case. Especially if the future borrowers have a
good credit rating and have equity, a comparison is worthwhile properly. Best
one turns to a good financing advisor. The knows exactly at which bank older
borrowers are welcome and which offers the best conditions. Because there are
great differences in the offers, and money you usually do not have to give away
even in old age.

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