Financing complete, mortgage registered, but no house construction

In our purchase contract for the building plot from the municipality, it states that in the event of a sale within five years of acquisition, the municipality has a right of first refusal. And the conditions they have had set down are, to put it mildly, very modest. With this, they want to put a stop to speculators.

In addition, you will have to pay taxes on the proceeds. There is a ten-year period. Unless you have lived in it yourself for the last three years.

On the profit. However, it is likely to be negative.

If you already have a building permit, just sell the "project"!!! That means, plot + architectural plans + building permit. And the new buyer will be happy because they can still configure many things themselves (especially the fittings). In my opinion, that would be a win-win situation.

Another option would be that if you manage to sell the "project", you can try to effect a collateral change at the bank by using the loan to acquire another (existing) property. For example, you could immediately rent it out again if you have no need for it. This way, you could "reuse" the loan. Of course, that would require some skill.

We will now also have a "Objektwechsel" and take the AnschlussKredit of our existing property with us and use it for the house construction. The existing property will be sold.

No, we are not building yet. However, plans, building permit, and financing are more or less completed. I don’t really know either. The project just doesn’t feel right to me at the moment. I’m somehow skeptical and not convinced. I’m not looking forward to the construction at all... Cold feet and all... :(