Construction financing for a large family house

You roughly assume an annuity of 5%. If you want and can afford a rate of 1500 euros/month, then a possible loan amount follows of 1500 euros/month * 12 / 0.05 = 360,000 euros.

If I mentally subtract 150,000 euros of residual debt from that and add 200,000 euros sales proceeds, a margin of 410,000 euros results. Plus or minus some 10,000 euros (new interest rate, sales proceeds).

From the margin, the following must then be covered:
1. Everything needed for a new house.
2. Possible refinancing costs
3. Possibly expenses for the transition from the old to the new house.

The first point is regularly discussed up and down here. I have no real idea how much the other points might be...

Great, that already helps me! So the target numbers are not totally exaggerated. Sure, an additional 50,000 can quickly come on top, but with a very rough house price of 200,000 plus 100,000 euros for ancillary costs and base slab plus land of 60,000 including ancillary costs, we would still have a buffer up to 400,000.

Regarding the current house: comparable houses here at the moment go for 250,000 upwards and sell within days. I think 200,000 would definitely be doable, rather more for our house. It's in the city, but with greenery, a good location, and in good condition...

What do you think about Wohnriester? I have to say, I still don’t understand the product.

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When it comes to the number of children, Wohnriester is really something to consider, simply because you can secure a lot of subsidies with relatively little effort. Just have the Sparkasse calculate a version with and without; including the calculation of the Wohnförderkonto over the term.

In our case, with only one child, the Wohnförderkonto will grow to a total of 170,000, which will then have to be taxed.

But because of the subsidies and the relatively high tax benefits, we will also be finished about 6 years earlier than in the version without Riester.

I hope child benefits are NOT included in the 6500 net. Otherwise, some critical questions: A really big house (5 children's rooms) is not even realizable near 300k. Or do you want to build yourselves?! Plus unclear household situation? High income but overdraft... that just doesn’t work. My tip: Save for a few years and see what’s possible. Calmly sell your current house... it certainly won’t lose value. Just don’t sell under pressure... possibly temporarily move into a rental apartment? I know acquaintances who did that. It all works.

Also make sure that the profit from the sale of your property is added to your taxable income, causing your income tax rate to increase, and that the profit is taxed at this rate.

That's not correct; owner-occupied residential property can be sold without paying taxes on the profit.

The owner can avoid the speculation tax upon sale even before the ten-year speculation period expires if they have used the property themselves in the year of sale and in the two preceding years

Source: Finanztip