Construction financing: special repayments or not, possibly buying a new house?

Hello everyone,

I am currently stuck in a (for us) somehow annoying situation..

We bought a semi-detached house about 2 years ago (I reported here back then). Until recently, everything was fine.. But now, an owner of another semi-detached house (not our other half, the house is rented out, the owner lives elsewhere) has put a massive mega garage almost in front of our windows. This annoys me so much that I have been thinking again about building a house or buying another one, but this time a detached house..

Since we can save some money every month and have saved about 30k so far, I am wondering whether to put the money into the special repayment of the construction financing or rather declare it as equity in case we find another house.

Could I transfer the remaining debt of the current house to a new house and top it up so that I don’t have to pay a prepayment penalty?

Or what is the best way to proceed when considering buying/building another house, even though there is an ongoing financing?

Thanks for helpful answers, somehow I can’t see the forest for the trees anymore.. :(

Do you know the fairy tale of Hans in Luck? He starts with a lump of gold, ends with a millstone.....sleep on the whole thing for a few weeks. Karsten

Could I transfer the remaining debt of the current house to a new house and top it up so that I don't have to pay prepayment penalties?

Yes, you can usually take financing with you. But whether the conditions are great is uncertain. Having a choice is always better in this case. I would use the special repayment option as much as possible to reduce the prepayment penalty. The equity capital is not gone, but is tied up in the existing property.

Yes, you can usually transfer financing. But whether the conditions are good is uncertain. Having a choice is always better in this case. I would try to fully use the special repayment right to reduce the VFE. The equity capital is not gone because of this, but rather tied up in the existing property

Is the value or the value minus the outstanding debt recognized as equity?

Do you know the fairy tale of Hans in Luck? He starts with a lump of gold, ends with a millstone.....sleep on it for a few weeks. Karsten

I've actually been doing that for a few months now..

I don't know the fairy tale, but I will actually read it sometime..

Is the value or the value minus the outstanding debt recognized as equity?

If you transfer an existing loan of 300 on a house valued at 400, you practically have 100 equity (25%). However, not in cash...