Bought a new apartment

Yes I did. Just before the proverbial korona-shit fully hit the proverbial fan. I would have waited a little in retrospect… I will not concentrate on other aspects of the horror show in this post, but just tell about the apartment.

Alas, I decided to go with a 14-year interest rate cap, which means that the interest will not get higher than about 1,4% (the exact percentage will be set at the bank according today’s rate) for the next 14 years. If interest rates go up, I still pay the very low interest rate.
If I knew that there would be rapid inflation, it would make sense to keep the low-interest loan and let the inflation take care of it. But I think (my hunch only) there will first be deflation. Prices will drop. In light of this, I changed my plan.

I got a good deal on my studio when I bought it, and I got a good deal on this new apartment. The studio is in a much sought-out neighborhood and also very suitable to investors. So I decided that I would sell that one for a profit, pay off the loan (or most of it) I just got for the new apartment, renovate that one a little and then either rent it out or sell it for a profit. If I keep it, I may move into it later with my daughter. The studio got a lot of interest right away and I can hopefully sell it to someone who will want to keep it rented, so the tenant can stay. Renovating the new place seems like a fun thing to do and it will make it easier to rent or sell, and if I want to live in it later it will be how I want it.

So what is this new place like? It’s 860 square feet, originally 3 bedrooms but currently two bedrooms and a large living room ( it could easily be divided to create a third bedroom). It is situated in the old town of a small city close to the capital, so it’s value and desirability have staying power.
So really quite different from the 199 square feet tiny studio in the capital.

I’m pretty much self-quarantined at home with my daughter as I have pre-existing illnesses and want to be extra careful. I will do the painting myself and pick out tiles etc. but have a professional tile the bathroom and kitchen.
I spend perhaps a bit too much time reading the news and this is a good distraction.

So the corona virus pandemic changed my plan a little. As I think housing prices will fall later too, and even though my loan is not too big to handle, I’d rather not hold debt if the prices fall. If I keep the new apartment I may keep SOME mortgage as the fixed interest rate is so low, perhaps 50 or 75k instead of 150k.

If I don’t sell the new apartment right away, I may rent it furnished or semi-furnished. I’m going to let go of the place I rent for my business (and only distribute through retailers in the future, that was my plan pre-corona anyway, things just got expedited because of it) and there is some cool furniture that I can use for the apartment -and I don’t have to spend time getting rid of the stuff. Which is always a terrible drag.

So much stuff happening in my life and in the world that my head won’t stop spinning. I’m not scared though. All of this was foretold in the Book, folks!

Stay safe.

Published by Miss Guided

Chumped, dumped, ground to the ground, picked myself up and got up with my head held high, fierce and independent woman, I am finally free.

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