Is financing possible?

Hello,

we bought a house two years ago and financed it 100% (since I am a civil servant). At that time, we bought it for 160,000.00 euros and have since invested about 10,000.00 for improvements (wood stove, paving work, walk-in closet, etc.).

Now we are considering moving for professional reasons and purchasing a new property.

The problem: We do not want to afford a higher repayment (despite 1% repayment).
Second problem: We have no equity, not even to cover the incidental purchase costs.

How do you see the situation? Is it realistic, under these conditions, to actually be able to sell an existing property and buy a new one? And how exactly would that work (I once heard something about [Zwischenfinanzierung]).

I already say "thank you in advance" for your answers.

Best regards
Stefan

Hello Stefan,
this will of course depend on the selling price.
If you manage to let go of the property, say, for 180k and the remaining debt including the prepayment penalty is lower, it could work.

Hello,

that assumes that I first have to sell my house in order to then look for a new one.

consequently, I am also very bound by deadlines when it comes to searching for a new property.

my plan was actually to first find a new property and then try to sell my current house.

but that is probably difficult to implement in practice, because then there is the risk that I won’t sell my house at all or only for a low price, right?

stefan

With a used property it might still work, but with a new build it will be difficult, since your Käfer wants to move in quickly (about 3 months) and the new build, for example, takes a year.
It is best to first talk to the financing bank to see if the contract and at what cost your loan agreement could be terminated at the end of the year, for example, or if it can be transferred to a new property.
Since you haven’t paid off anything in 2 years yet and possibly face a high prepayment penalty with a long fixed interest period, the bank could want around €200,000, and if a broker or appraiser estimates the current value of the house at only €130,000, then it probably won’t work out.