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Need opinions on a strange question regarding owning an apartment

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Hello,

 

I just make the story short and I look forward to hearing your comments which may be helpful for us.

 

As an international I had a difficult time finding a good apartment with a reasonable price (~50m2 for around 1300Euro). Therefore, I decided to buy an apartment since I thought I can pay a monthly loan of 2k instead of paying it for rent.

 

Now we have a beautiful apartment in a 3 apartment building in a ruhige-lage in north-west (Untermenzing). Then the problem! I have recently got a good offer to work in a top company in sought-east and I have already accepted it! Now, it will take around 35-40 minutes to drive or around 1:15 minutes to use S-Bahn to get to work!

 

I am not looking for a quick solution but a reasonable suggestion which is doable in 1 or 2 years. Is it common here to replace apartments or we should rent our nice apartment and look for another apartment to rent?

 

Thanks in advance :) 

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Well, I assume that you will have a 6 month probation period so the first rule is don't do anything until this period has passed.  Until then, you will have to commute.

2ndly, you really should have thought about this before you accepted the job offer!

 

The calculation of 35-40 minutes I assume is in rush hour traffic?  If not, then you need to try to determine this and what your door-to-door time will be for both methods of transport and decide what is best for you.  You can even mix it.  2 days a week S-Bahn, 3 days driving etc.

 

If you decide to rent out your current place then you need to consider:

  • What happens if it is empty for 2,4,6 months or the renter does not pay rent for 6 months.  Can you afford to cover the cost of this and your new place?
  • What happens if you lose your job in 9(?) months?  There is talk of a recession, so you must at least consider this.
  • What will your mortgage provider say?  So will not let you rent out, or will want to change the conditions.
  • A mortgage provider might also consider your current place (even if rented) when you apply for a new mortgage, so you might not be able to get as much credit as you think.
  • Have you calculated the extra cost for you?  You will have to have landlords insurance for the building, have to pay for things such as yearly chimney sweep, smoke alarm checks, etc., have to pay tax on the extra income, can you afford to do this and still at least break even?
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What dj says. Do nothing yet. It's not even worth thinking about until you have got past the probation period. By then you will know if the job is secure and if it's a job you want to keep. You will also know by then what the commute is like. 35-40 mins is absolutely fine...although I suspect it will be longer in reality (rush hour traffic).

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Without knowing the cold, hard numbers [monthly income, debt, assets, purchase price of current and future property, family situation, etc] it's not possible to give you an answer.Selling straight afterward you've paid (wasted..) up to 8.5% in NK is in general a shitty thing to do, specially since we're talking about Munich. Personally, I'd do it as a last resort and throwing up all the way.

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also remember that unless it's a neubau, if you want to rent it out you can't just hit your tenant with 2k in rent to cover your current payments as you will have to observe customary pricing limits.  well you can try, but it's a shitty thing to do and may well bite you in the ass if the tenant claims a rent reduction after moving in.

 

munich property is "upside down" in that in so many cases if you've purchased an empty apartment to live in yourself, you can't legally rent the place for enough to cover your own basic costs, and the shortfall can be quite large.  

 

personally I would s-bahn it to the new job, and find ways to make the trip more enjoyable.  read a book, nap, drink your coffee and people watch, whatever.  yeah it sucks but why on earth did you take a job so far away if you weren't prepared for the commute?!

 

eta: yes of course you could sell it but as mtbking has pointed out, you're losing thousands from the purchase costs, and you'll likely have to pay the makler half the commission again to sell it.  to me that seems crazy.

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7 minutes ago, Krieg said:

What's the problem with commuting 35 minutes?

I was thinking the same thing, I don't think that's a long commute into any major city these days!

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The  commuting time will be between 35-40 minutes without accounting the traffic. This is not a problem for me as I would gladly wake up as early as possible to avoid it. The issue will be that 1) I am afraid of the costs of driving a car everyday, and 2) When possible I would like to put less strain on the environment.

 

Maybe 45 out of 50 apartments that I saw where close to my next job location, but the one that I have currently bought has the longest distance! :| My current apt being a nice one, my frustration to find a good apt, and the stress from approaching the end of my rent contract are responsible for my (maybe) mistake to buy this apt!

 

Based on the comments, now I will avoid making any changes for the current time.

 

Thank you all for the great replies. It seems that we have a great community here in the toytowngermany!

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