Build a 2nd house and sell the 1st one - How to finance?

So I don't want the new owner to take over the financing.
The new owner pays me the selling price (700k €).

From this money, I keep 374k as equity.

I set aside the remaining 326k and use it to continue paying for my current house and financing diligently.

So now I take out a 700k loan from another bank with 374k as equity.
There remain 326k as the remaining financing amount with the new bank.

I do think you can get something decent for 700k.
At least new construction is cheaper than an old house that also needs complete renovation.

At least that was the case in 2017.

I can hardly imagine selling a house for €700,000 now and then saying, "yeah great, but they (the new buyer) can only move in in just over a year" ...

Easy, done twice in the last six years. You can have anything you want. For good houses, buyers meet ALL the requirements.

Why does it cost prepayment penalty? You could continue the financing and continue financing with the calculated €326,000 from above.

Works with almost all banks for a fee.

The only problem that destroys your entire construct is: The house you sell now for 700, you will also build again for 700 – and not higher, better, more. Unfortunately, production costs follow selling prices. That is the big catch in the idea.

So, I don’t want the new owner to take over the financing.
The new owner pays me the sale price (€700k).

From this money, I keep €374k as equity.

The remaining €326k I set aside and use to faithfully pay off my current house and financing.

The bank takes the €326k as substitute collateral for the sold house. Usually, you then have 12 months to finish the new house.

So now I take out €700k financing from another bank with €374k as equity.
Likewise, €326k remains as the rest of the financing amount at the new bank.

Costs a hefty prepayment penalty at the old bank.

The prepayment penalty will be around 20K, I estimate....

The prepayment penalty will be around 20K, I estimate ....

Do you mean it will be that cheap? When I look at the investment returns that form the basis for the calculation, I expect a significantly higher amount. But you can roughly calculate it already on the internet.

Do you already have a specific new plot in sight?

We will also sell our current house and build a new one.

We cannot transfer the current financing to the new property because we bought the plot beforehand and entered into a financing agreement with a fixed term.

We will take out an interim financing for the missing amount that arises from the late sale. For this, the financing bank naturally wants all the information ([Bj], size, remaining debt, etc. pp).

The interim financing has a somewhat higher interest rate, but can at least be repaid immediately when the sales price is received.

From our perspective, the advantage is that we only sell the house when the completion of the new house is certain and maybe only a few months remain until handover. I had the impression that even with the real estate agents, despite the market situation, it sounded discouraging when we talked about approximately 18 months until handover.

We do not want to risk having to move in the meantime due to a construction stop (for whatever reason).

No, we do not yet have a specific plot in sight. So far, they were only thoughts.

There is one here in town that I would like to have. However, I do not yet know who owns it, but apparently they do not want to sell it, as I have already heard.

Then we had the chance for a plot in a new development area, a few towns further. Unfortunately, we forgot to register ourselves for the final draw :(

Furthermore, I believe that we are still tied to our house for a few more years. I have to check again if there was any rule about how long one has to live here when buying a plot.

I find it really stupid, you are not free or flexible at all when you buy a plot through the city.