From condominium to house construction. When do I sell the apartment?

We live in a condominium that is fully paid off, and now we want to buy a plot of land and build a house on it. We have not yet found a construction company, and we also do not have a plot of land yet. In Hamburg, it is not exactly easy to find a plot of land or a house. Selling is likely to be faster. When is the best time to sell our apartment? For the land purchase, I would actually need the money already, but at the current time, I do not know when I could move out of the apartment. If I were to sell the apartment now and specify a certain move-out deadline, with a percentage down payment, I would already have money for the land, but I would run the risk that by the deadline I still do not have a plot or house. What is the best solution?

you normally get the money for your apartment only when the other person can move in as well. that's called transfer of risk. he could take you as a new tenant for a certain period. but that would only work if the buyer of your apartment wants to use your apartment as a rental property. that would of course be optimal.

but if the apartment is in demand, a later sale would be more sensible. the bank will certainly recognize your property as equity, but you have to pre-finance the amount. that could be done, for example, with a very short, smaller loan. once the property is paid off, you could also possibly buy the land on which the condominium is registered with the still existing land charge (might save registering a land charge again, etc.).

in the end, you have to calculate what makes more sense.

sell immediately:

- move once more, maybe you can stay as a tenant in the building
- with a lot of luck, you find someone who waits until you move out (which usually makes no sense as a buyer and has only disadvantages – you might not even get any money...)
- there are usually costs incurred as a tenant (wherever)

+ you have your equity available immediately

sell later:

+ you have time to choose the land, no one pressures you
+ you wouldn’t have to move or anything else

- you have to pre-finance your equity in the form of the property
- thus you pay interest on your equity
- you have to calculate when the house will be finished (i.e., when the money is spent) and when the old property is sold to keep the loan period as short as possible
- you have the risk of having to sell the property in the end (probably not an issue in Hamburg)

what kind of sum are we even talking about here? otherwise, of course, you can try to sell the apartment with a right to stay. maybe someone will agree to that (especially if demand is high). notarized certification states until when you have to move out. for that, you have to know when your house will be ready. if you don’t even have a piece of land yet, that’s pointless at the moment :)

I am currently facing the same "problem." However, I already own a plot of land (bought without a loan) and want to start building soon.

The apartment will bring me > €150,000. For that, I could easily arrange interim financing, although the interest rates for that are somewhat higher than usual. However, I will try to sell the apartment about half a year earlier.

is right when he writes that the money usually only flows when the risk transfer takes place (i.e., shortly before handing over the keys). However, there are ways to arrange this differently. My plan would be to sell the apartment and then rent it for about half a year longer - the move-out date can be notarized in the purchase contract with an appropriate eviction option. Perhaps there is even a buyer who only wants to rent it out anyway - then I think it wouldn’t be a problem at all. But even otherwise, I see the whole thing relatively relaxed - apartments are also sold that are rented. Often the tenant has quite a long notice period here, etc. - on the other hand, I can tell the buyer relatively precisely when I will move out.

We are also facing this topic. We have a condominium and will start building next year. Nevertheless, the apartment will be put on the market from summer onwards. But with the added note, move-in ready from.

The idea is not unusual and not uncommon at all. And quite comfortable for the buyer as well. Nothing changes for him initially. Costs are covered by us as tenants and he continues to pay his rent normally (if he’s lucky, he even makes a profit if he brings a better rate/higher equity). He can also still claim the rental income for tax purposes.

Friends of ours have just done the exact opposite. From rental apartment to house. The former owners were not yet finished with renovation work on the new house and initially lived there as tenants. As long as you don’t have the big pressure to urgently leave the rental property, I see relatively few problems.

The problem is just that people who want to buy your apartment to live in it themselves involuntarily become landlords. As a landlord, you have to do a lot of things that they might not feel like doing. And furthermore, they won’t know how the apartment will be handed over in the end. If the old tenants don’t move out because their construction is delayed, the new owner would first have to laboriously sue them out (unless he knows Inkasso Moskau), while his own old apartment is also terminated and running out... Those who want to rent anyway are optimal. Those who want to live in it themselves only bring disadvantages upon themselves. In a good inquiry/demand situation, they probably have to swallow that bitter pill. Here in the countryside, you can’t just get rid of such a place :) A very big problem is also that the new buyer buys a property without really seeing it from the inside. Sure, inspections and such, but he never had the opportunity to test the technical equipment, etc... You are either an owner or a tenant, how is he ever going to enter his apartment and quietly see what he actually bought? By the time he eventually moves out, suddenly the heating is broken and then?

The only problem is that people who want to buy your apartment to live in it themselves involuntarily become landlords. As a landlord, you have to do a lot of things that they might not want to do. And furthermore, they don’t know how the apartment will be handed over in the end. If the old tenants don’t move out because their construction is delayed, the new owner would first have to painfully sue them out (unless he knows debt collection Moscow), while his own old apartment is also terminated and running out...
Whoever wants to rent out anyway is optimal. Whoever wants to live there themselves only puts disadvantages on the table. In a good supply/demand situation, they will probably have to swallow the bitter pill. Here in the countryside, you won’t get rid of such a place just like that :)
A really big problem is also that the new buyer buys a property without really having seen it from the inside properly. Sure, viewing or not, but he never had the chance to test the technical equipment etc... You are either an owner or a tenant, how should he ever enter his apartment and check undisturbed what he actually bought. Until he eventually moves out, suddenly the heating breaks down and then?

With a decent apartment in a reasonable location, none of this is a problem. Many do it that way (we too, sold our old house almost 1.5 years before moving out – several neighbors have done the same).
As a buyer, you do not necessarily become a landlord; it depends on the purchase contract and the regulations. Agreements can also be made about the condition of the property.
You just have to think about what you want.