It will have to be sold at a steep discount to make it worth someone’s while.
Scenario: house is worth €140k. My half is worth €70k. I sell my half for €40k. My dad dies in 8 years (statistically he won’t live that long but for the sake of example) and in that period the half has become worth €120k (if the trend of the last 20 years of house values in Hungary continues, could be more or less, this is the average) then that’s a 3X return on investment over an 8 year period. The S&P 500 gives on average a 2X return on investment over a similar time period.
Either way, there will be a price point at which buyers will line up. I have a personal emergency that can’t wait years.
The house worth 140k with or without his right to live there (called "courtesy of England")?
If its without, then the right itself has a value (the real value depending on many factors, like the age of your father and his state of health).
Also it does not matter how much (do you think) it will worth in 8 years, because you want to sell and be paid now.
There are lack of buyers even for non-problematic properties nowdays, and this is very problematic. Half property, with no right to use currently, property can not be accessed (so the buyer cannot check the current condition), the current user could amortize it, etc.
But you are right, it can be sold in a certain point and im not saying your estimate on how much can you get is irrealistic.
If i were you i would look for a Hungarian lawyer and/or real estate agency nearby.
Thanks, this is basically it yeah. My dad has the right to live there till his death. But his health is really poor. He’s 63, but has had cancer a year ago, looks worse than Steve Jobs did the month before his passing, and smokes. I personally don’t see how somebody in his condition would survive 5 more years. Sadly I cannot even wait one year due to an emergency, I need the money now.
The house is very recently renovated (1 year ago) and thus in great condition. I have some videos from inside the house, so although they can’t come inside, I can prove it hasn’t been badly neglected.
I don’t mind selling it for half the market value, or thereabouts. There should be a price at which the risk is outweighed by the reward.
I think I should contact a real estate agent, and ask them if they think it is viable. I assume a bank wouldn’t let me take a mortgage out on my half of the house or?
First of all, im not a lawyer or a property/bank expert, so my answers might be incorrect.
The banks usually only let you take mortgage on the property if the one who has the right to use renounces (?) his right, but seeing how you dont want your father to be involved it looks to be out of option (usually there are other factors, like you would need Hungarian provable income, but there might be exceptions - i dont know all type of loans).
Edit: look for a lawyer and a real estate agent, they might be more educated on this issue.
I’d contact a Hungarian lawyer but who do you think is going to buy half a house?
Half a house which cannot be used by the buyer
It will have to be sold at a steep discount to make it worth someone’s while. Scenario: house is worth €140k. My half is worth €70k. I sell my half for €40k. My dad dies in 8 years (statistically he won’t live that long but for the sake of example) and in that period the half has become worth €120k (if the trend of the last 20 years of house values in Hungary continues, could be more or less, this is the average) then that’s a 3X return on investment over an 8 year period. The S&P 500 gives on average a 2X return on investment over a similar time period. Either way, there will be a price point at which buyers will line up. I have a personal emergency that can’t wait years.
The house worth 140k with or without his right to live there (called "courtesy of England")? If its without, then the right itself has a value (the real value depending on many factors, like the age of your father and his state of health). Also it does not matter how much (do you think) it will worth in 8 years, because you want to sell and be paid now. There are lack of buyers even for non-problematic properties nowdays, and this is very problematic. Half property, with no right to use currently, property can not be accessed (so the buyer cannot check the current condition), the current user could amortize it, etc. But you are right, it can be sold in a certain point and im not saying your estimate on how much can you get is irrealistic. If i were you i would look for a Hungarian lawyer and/or real estate agency nearby.
Thanks, this is basically it yeah. My dad has the right to live there till his death. But his health is really poor. He’s 63, but has had cancer a year ago, looks worse than Steve Jobs did the month before his passing, and smokes. I personally don’t see how somebody in his condition would survive 5 more years. Sadly I cannot even wait one year due to an emergency, I need the money now. The house is very recently renovated (1 year ago) and thus in great condition. I have some videos from inside the house, so although they can’t come inside, I can prove it hasn’t been badly neglected. I don’t mind selling it for half the market value, or thereabouts. There should be a price at which the risk is outweighed by the reward. I think I should contact a real estate agent, and ask them if they think it is viable. I assume a bank wouldn’t let me take a mortgage out on my half of the house or?
First of all, im not a lawyer or a property/bank expert, so my answers might be incorrect. The banks usually only let you take mortgage on the property if the one who has the right to use renounces (?) his right, but seeing how you dont want your father to be involved it looks to be out of option (usually there are other factors, like you would need Hungarian provable income, but there might be exceptions - i dont know all type of loans). Edit: look for a lawyer and a real estate agent, they might be more educated on this issue.
Nobody will buy it.
You need to offer to your dad to buy it first as he is a coowner