House move - How to plan interim financing?

The offered bridge financing is completely fine from today's market perspective. If you know your real estate market and set a realistic price, then I don't see any risk there. What is the worst case? The house is not sold and financed long-term (annuity significantly below 7% - maybe around 5.5%). In addition, it will be rented out - apparently bringing in up to €1,500 per month.

Just do it. Many people in this forum have regretted over the years not having done things. Sometimes people just overthink and weigh things too much. Typical German...

: A semi-detached house is also a completely normal single-family house. A terraced house is also a single-family house (single-family house).

I myself would also have no problem with the interim financing, except of course for the risk. If we were to sell the house for €550,000, we would have made a profit of €310,000 in 12 years, since it originally only cost €240,000!

My wife sees it a bit differently, and we have to agree on that!

That is simply wrong. In many [B-Plänen], single-family houses, semi-detached houses, and terraced house plots are even separated. You can only build the specified type on each plot. And if someone then asks you where to build a single-family house (on which plot), they certainly do not expect a plot for a semi-detached house. Single-family houses, semi-detached houses, and terraced houses are detached houses. However, from a building law perspective, a terraced house is something quite different from a single-family house. A duplex with 4 apartments is also a detached house, but not a single-family house. Please only correct someone if you really know it.

That is simply wrong. In many development plans, detached houses, semi-detached houses, and terraced house plots are even subdivided. You can only build that type on each plot. And if someone then asks you where one can build a detached house (on which plot), they certainly do not expect a plot for a semi-detached house. Detached houses, semi-detached houses, and terraced houses are single-family houses. However, this is something completely different in building law from a detached house. A semi-detached house with 4 apartments is also a single building, but not a detached house. Please only correct someone if you really know it.

Sorry, but I have been working in the industry for nearly 30 years and you are talking nonsense or mixing things up. You don’t need to mix single house and detached house. There are only specifications in the development plan about what type of single-family houses may be built. And please don’t come to me with building law, you are treading on very thin ice there ;-) The definition of a detached house in the industry is approximately: residential building that provides accommodation for one family or a shared household. It belongs to those buildings with only one usage unit. This definition is fulfilled in the real estate industry by the detached single-family house, as well as the semi-detached house and the terraced house. I just found a nice definition on the internet: A detached house is a building that serves as living space for a family or people living in a household. Usually, a detached house is a free-standing house that stands alone on a plot. Semi-detached houses, terraced houses, and detached houses with two residential units (detached house with a granny flat) also fall under the category of detached houses. Colloquially, the term "home ownership" is often used for the detached house. You yourself might connect the term "detached house" with the free-standing property. But the term means more. Finally, a question for you: what kind of houses are semi-detached or terraced houses? According to you, they are not detached houses. But neither are they multi-family houses. But what then, if a family lives in their own house? I am curious about that term, because I have never heard it since my training and my real estate business studies.

2. Sell first, but with the condition to continue living in the house for a maximum of 2 more years. This would avoid the interim financing, but on the one hand, you would first have to find a buyer who agrees to the conditions, and then we would have 2 years to find a new house, and if we're unlucky and find nothing, the only option would be to move into a rental, which we want to avoid. Also, the loan would then have to be completely paid off with the sale, so overall less equity.

Why so complicated? You write "... and then we would have 2 years to find a new house..." Until you have found a new house, you don't need financing, and also don't need to sell the old one. You find a suitable property, make a financing inquiry with the bank in advance, with the confirmation you enter the negotiation, and only roughly simultaneously with signing the purchase contract you also sign the financing. If the purchase doesn't go through, the financing is void (agree this in advance!). That means the timing risk is more whether the (re)construction works, but then you already have a property, otherwise you wouldn't need financing. Since selling your house will also take some time anyway, you can start relatively soon depending on how extensive the work will be. But plan some buffer time so that you don’t suddenly have to live on the construction site for 3 months...

In theory certainly simple, but synchronizing buying and selling so that it happens shortly one after the other is not so easy for us. You are also dependent on some people who then also have to work quickly.

- Appraiser for new house
- Bank
- Realtor
- possibly craftsmen
- etc.

We would manage the move itself in 1-2 days, that would not be an obstacle.