Finance Granny Flats Through Loan Tranches

Homes with integrated granny flat are absolutely trendy. More and more property buyers and builders are choosing this option. The backgrounds can be quite different. Some are concerned with providing separate living space for the children, while others aim to accommodate a lodger for additional revenue.

If the apartment is rented, it is advisable to optimize the financing or to take into account the circumstances of the lending in the loan design. If rental income accrues, they have to be taxed – in return, of course, one is entitled to transfer the financing costs or deduct from the rental income, thus reducing the tax burden.

 

Ultimately, this has the consequence of having to split real estate loans.

Ultimately, this has the consequence of having to split real estate loans.

If a property is not completely rented, but partly used privately, only the financing costs of the rented residential unit may be claimed for tax purposes. As a result, it is all the more important to have a clean separation of the financing costs, which can ultimately be achieved in different ways.

One possibility would be to simply take out two real estate loans and then deduct the interest on one loan. However, due to the split loan amounts (loan sums may affect interest rates), higher financing costs could occur. Therefore, it is often better to take out a loan and divide it into two tranches. In this way, it is possible to enjoy lower interest rates while maintaining a clean separation. As a rule, this procedure is not a problem at all, although it is still advisable for reasons of security to first visit a tax consultant and get professional advice.

 

Funding via a classic real estate loan

Funding via a classic real estate loan

The best lending rate is when you take out a real estate loan. It is characterized by the fact that it is secured by a real estate. In return attract very attractive conditions.

But the choice is not that easy. Which bank offers the right loan depends on numerous factors. Therefore, it is advisable to seek advice from independent experts. Interested parties should contact our consultants directly – a short and non-binding inquiry is enough! We are happy to check which modernization loan is most suitable.

 

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