Demolition and reconstruction or renovation?

Does your life get better when you harvest?
Does your life get worse if you don't harvest?
If both questions can be answered with "No," let the children harvest and choose this option.

Good approach, sounds reasonable, but unfortunately is not a clear solution either. Or do you mean the multifamily house option?
Best regards

You build something there that can be approved, is profitable in the long term, and does not obstruct the view. Whatever that is.

First clarify what options are available.

What happens in case of cancellation? Construction requirement?
Is it allowed to build a multi-family house?
Would it be possible to build several bungalows?
Is there a market for rental as it is + a few buckets of paint?
Where and how do the children live?
What do the finances allow?
Can you afford 2 and 4?
Is 5 possible?
Or do you need 1 or 3?

What did you hope for with the purchase?
What were your first fantasies about what you would do someday if the neighbor dies. The things you "spun together" in the evening over red wine.

Do you like gardening or is the area more of a horror?
Do you see yourselves as landlords?

I don’t quite understand your post, can you give me a hint? I found nothing in the search.

I also didn’t find it in the search just now – but I am sure I have basically said it here in (probably several) other threads, "@ all & forever". I meant with:

Overall / in general you will have promoted the discussion with the illustration

... that you have given the discussion of your problem a significant boost by including the site plan excerpt: before, property 2 in my mental movie was bordering the southern boundary of property 1 along its full width; I hadn’t thought at all about a path at the eastern boundaries of both properties and more, which the picture says more than a thousand words. With

excluding my personal contributions (I already said elsewhere that I will no longer comment on location depictions with etchings or the like).

I meant that on my part – which I had already announced in this forum – “the oven is out”, when questioners really “make an effort” (in the form of etchings, blackouts, whitening, image cropping with minimization priority or the like) so that it becomes harder to help them. Without such childish stuff, it is considerably less difficult for me to draw on additional sources in order to be able to help the questioners competently. But at some point there is an end to the line. Unfortunately, my forensic talents are not as highly developed as those of our unfortunately driven-away specialist here. And especially since one can no longer communicate via PM with newbies here, clues must also be able to lead further in order to provide qualified help. If I can only do that cluelessly limited to the possibilities of a casual discussant, my time for that is too precious. [So, I will now bookmark this post so that at least I myself can find it again next time]]

Attached is the plan, No. 1 is our built house, No. 2 the newly acquired one.

that looks like a regulated residential area for single-family houses, possibly also for semi-detached houses.

Is north at the top? Then I understand your concern about "high-rises," or multi-family houses or row houses

I do not.

First clarify what options are available. What happens in case of demolition? Building obligation? Is a multi-family house allowed to be built? Would several bungalows be allowed?

I would do that too. I just exclude multi-family houses, bungalows not (why not). Whether three of that kind or only two...?!

Maybe divide the plot into thirds, keep the third by your fence and sell the other two.

You have thus bought distance and a grandchild plot, and make 2 other families happy.

I would see it similarly.

3. Divide the property and resell about 1/3 with the old house Pro: no more burden Contra: gone is gone

gone is gone, but you have gained the distance! What you keep, perhaps still enjoy fallow, that is as a garden and later have it built within the family. Give away the old house! Worries gone, distance gained.

First, clarify what possibilities there are.

What happens in case of cancellation? Building obligation?
Is it allowed to build a multi-family house?
Would several bungalows be allowed?
Is there a market for renting as it is + a few buckets of paint?
Where and how do the children live?
What do the finances allow?
Can you afford 2 and 4?
Is 5 possible?
Or do you need 1 or 3?

What did you hope for with the purchase?
What were your first fantasies about what you would eventually do when the neighbor dies? The things you "spun together" in the evening over red wine.

Do you like gardening or is the area more of a horror?
Do you see yourselves as landlords

No, there is no building obligation. However, for us it is a financial burden for the loan taken, although to a justifiable extent.

Multi-family house: Yes, next door is a two-family house; currently, a 12- and a 5-family house are being built on the street. The only condition is the ridge height, which must not be higher than the neighboring houses, but that is sufficient for 2 1/2 floors.

Bungalow yes, but 2 bungalows are, of course, not exactly the cheapest option...

Market for renting: Yes. One apartment could be 60, another 55 m² in size. That is exactly what is being sought here. But as I said, nothing relevant has been invested in the last 70 years, just paint is not enough...

The children are still in school/training/university.

Finances: we don't want to put in extra money; it should be self-sustaining. There is financing leeway.

From 1-5 everything is basically possible.

How do you know about our conversations over red wine?? :) In the middle of the property, we could later imagine a bungalow just for the two of us, so a downsizing when the children have finally moved out. Those were also the first thoughts about the property.

Gardening: Yes, pulling weeds no. But a beautiful garden with blooming plants, a pool, and a sauna house appeals to both of us and we enjoy that.

We have both been landlords before and would want to do it again.

Best regards
Heiko