Unlocking capital from real estate

Real Estate
1

Background

  • My family has a chalet in the mountains and I go there since I’m a kid. The rest of the family is also using it.
  • A few years ago, I inherited the chalet.
  • The only thing that changed is that I now have to pay for taxes and maintenance.
  • Selling or renting out is not an option.
  • There is no mortgage on the house.

Problem
The house causes costs, which increases my FI number, and has a lot of capital locked.

Questions

  • Do you know if it is possible to get a mortgage for real estate you already own?
  • Where could I find further information?

As it’s a special case, I couldn’t find anything so far.

Thanks in advance!

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2

Yes you can, up to 50% of its value (estimated by the bank you contact).

3

Thanks. I will give it a try in future.

4

I would totally do it!

You can get 10-15 year mortgages with below 1% interest rate and invest it with much higher expected returns.

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