House construction. Sell or rent out the condominium?

We are waiting for the allocation of the building plots, then we will plan the house, calculate all expenses and income, see what remains in the end, and make a decision...

That sounds like a good plan

I estimate that both options are feasible. In the end, you have to decide between: stress-free and easy to manage through the sale, or somewhat more stressful and maybe tightening the belt a bit, but larger capital accumulation through the rented apartment.

A bit more about the yield. A 3% rental yield is absolutely normal in southern Germany and in other booming cities. Of that, you can deduct 2% of the original purchase price minus the proportional land costs. Whether you can increase the apartment debt again and by how much would need to be estimated by a tax advisor. However, it could be tight to get the rent completely tax-free. What is definitely tax-free, though, is the increase in value, which in recent years has sometimes been over 5% per year. You can also make the rental apartment completely repayment-free and repay little in the new house. You don't have to have everything paid off in 10-15 years.

I don’t know if someone has already pointed this out before me, but are you 100% sure that you are allowed to acquire a plot of land if you already own property? In our case, it was explicitly excluded back then, if you already owned property, even if it was 62 sqm in Hamburg and I now live in Bavaria: anyone who already has something does not get a plot of land, that’s often how the conditions are here... sometimes you are still allowed to have something small, but with such a large condominium you are already over the limit.

I don’t know if someone has already pointed this out before me, but are you 100% sure that you are allowed to purchase a property if you already own one?

I know this requirement. It is somewhat more "liberal" here: you are not allowed to own a house or a buildable plot of land. In addition, you must have had a permanent residence in the municipality for at least 5 years. Additional points are awarded for children, volunteer work, a workplace in the municipality...

I don't understand this discussion at all. I understood that the condo is almost paid off?! Depending on the location, I would rent out the condo. Taxes or not. That doesn't make a big difference, not in these income brackets. Moreover, many expenses can be deducted as advertising costs.

You can still sell later. Don't forget, fate never sleeps. And maybe there will come a moment when you will say: "Thank God we didn't sell back then."

ps. Have comes from hold!!! ;)

I don't understand this discussion at all. I understood that the condominium is almost paid off?! Depending on the location, I would rent out the condominium. Taxes or not. That doesn't make a big difference, not at these salary levels. Moreover, many things can be deducted as advertising expenses.

You can always sell later. Don't forget, fate never sleeps. And maybe the moment will come when you'll say: "Thank God we didn't sell back then."

ps. Having comes from holding!!! ;)

And where will the 600K for the new house come from then?