Assessment of a somewhat unusual financing project

Good evening everyone, I have, in my opinion, a not entirely unusual plan ahead, about which I would like to hear whether you would have a good feeling about it or if I should have one ;-).

For the purpose of expanding the family tree, my condominium (built in 2006) is to be sold and a house (built in 2017) purchased.

Framework conditions:
- Fully paid-off condominium, value according to the realtor: €275,000 + €15,000 parking space
- House: purchase price €500,000 + incidental costs
- Additionally, a kitchen costing €20,000 and renovation costs (floors, fly screens throughout the house, painting + wallpaper) amounting to €10,000 must be provided by me, realtor fee for selling the apartment: 3.57%: €10,000
- Total financing sum thus around €590,000 (house purchase price is fixed, we will see about the apartment, but for the financing below I only assume €250,000, you never know).

Talked with ING respectively Interhyp & realtor: First house purchase, then renovation, then apartment sale, for which interim financing is needed, conservatively assumed at €250,000 (and 6.8% interest).

Additionally the following on the asset side:
- €50,000 in cash, prospectively end of 2024: €70,000
- €100,000 in stocks / ETFs in profit should only be sold in an emergency, they serve as retirement provision.
Gross household income: €160,000 p.a. (man €120,000, woman the rest)

Thus pure financing amount €590,000 - €250,000 equity = €340,000, provided I do not touch cash / stocks.

If the apartment really brings in €290,000, the rest will flow into special repayments from 2025.

Now the big (or also small, your opinion is asked here) but: The house seller wants to go to the notary as soon as possible, so the purchase presumably at the beginning of July. A tenant still lives in the house until 1.11., rent income €1300 warm. Apartment sale could thus, conservatively, occur around 1.1. - 1.2.25.
The baby is due end of October, so we did not necessarily want to move then, therefore rather beginning of 2025.

My concerns here: What if the apartment does not even bring €250,000, what if the tenant does not move out? I would now prospectively have to buy a house into which I cannot move, get a child, have to renovate the place, and simultaneously pay almost €3100 into the financing as long as the apartment is not yet sold. In addition, my wife goes on parental leave from September.

We are quite security-conscious and therefore ask ourselves: Does this sound like harakiri to you as experienced homeowners, or is it only due to the sums and hormones ( ;-) ).

Sorry for the wall of text, feel free to ask questions, I think it reads quite confusing.

… the hormones! The first time! Call it fear of the blind date!

having a child,

like so many.. no need for an extra space yet

I’d have to buy a house prospectively that I can’t move into,

this is often common with a used property

What if the apartment doesn’t even fetch €250,000

then it just doesn’t. You won’t become poor or end up in a bad situation because of that.

what if the tenant doesn’t move out?

then you sue him to get him out.

have to completely renovate the thing and simultaneously pay almost €3100 into the financing

Yeah, that’s how it is for most people with the dual burden.

But: the place is supposed to become your home, so take everything a bit more calmly.

You can do this! Take a deep breath, talk to the bank; take a deep breath, go for a walk in the woods (is also good for mother & baby) and put one foot in front of the other - like when going for a walk.

Make a schedule with gaps for delays / unforeseen events and then cheerfully get started.

Ohmmmm

Your household income is estimated at 8.5k net, so I find it hard to share your concerns. It really depends on what your standard of living is. If you already have 4k fixed expenses excluding housing because you eat out twice a week and buy designer clothes, then it does get tight indeed. If your consumption is more around the average, you don’t have to worry. We have been paying rent at the transitional house (1.6k) for 4 months now, as well as the repayment plus interest for the new house (1.2k), the land (0.6k), and all other fixed costs (1.5k) and still living as well. And we have 1k less household income than you. If the house is really the right one, I wouldn’t give it up either. Get an expert on your side to check the house and if he gives the green light: go for it!

With the household income and secure assets, completely easy. Even if the [ETW sale] unrealistically brings in less or is delayed for any reason, you should (assuming average standard of living) never be in financial distress at any time. I think it is rather the inexperience with "larger" amounts.

The only risk is the tenant. Has he already given notice or is the lease expiring? If yes, he is obliged to pay damages if he does not move out. You yourself can only give notice if you are listed in the land register, and with the notice period and a lawsuit against it, it can take time.