Finally, the home is paid off and completely in your own possession. What now? Are there certain things to consider? How profitable is the property now as an investment?
Once the real estate loan has been paid off, a great burden often falls off the shoulders of the buyer – also financially. But what now? In order to keep an overview, you should draw up a new financial plan straight away.
Inhabit, mortgage, rent or a new investment?
Anyone who buys their own home or condominium usually pays it off for decades and has high monthly expenses for the real estate loan. Once the last installment has been paid, owners often have significantly more money at their disposal each month than before. That’s why you should draw up a new financial plan at the latest when the end of the installment payments is approaching – the excess money should not simply remain in the account or even be spent without a financial plan, but should be invested.
This is possible in the form of another real estate investment, as an investment in funds or shares, or in a pension savings plan: There are no limits to your imagination, but it always makes sense to seek professional advice before investing. This is because financial plans are very individual and many factors – including other savings, your own age and monthly income – have to be taken into account. Obtaining information online can be a first step, but it is not sufficient.
Does a cancellation of the land charge make sense?
As part of these considerations, owners should also consider whether they should pay the land charge in the land register want to delete or not. The mortgage is paid by the bank im land register registered so that they have security in case the borrower is unable to pay. Once the last installment has been paid, the owners always receive authorization from the bank to clear the land charge. You can then go to the notary and have the land charge finally deleted. This is useful (but not necessary) if the property is to be resold, because many buyers want a clean entry in the land register.
In fact, it can also make sense for future planning to pay off the land charge in the land register to let it stand, because first of all, the deletion of the land charge costs both notary and processing fees at the land registry. Depending on the value of the property, these costs can skyrocket and can be perceived as an unnecessary expense. Leaving the mortgage in place can also make sense if there is room to take out a larger loan again in the future – because then the mortgage can be used as security or the property can be mortgaged.
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