Is it feasible to buy a second house with a mortgage on the first house?

Thank you very much for the numerous responses and suggestions.

Gift tax is just a topic we have to tackle.
A lawyer friend said that since we grant them the LEBENSlängliche Wohnrecht, this, including a risk, will be offset and thus the gift tax can certainly be justifiedly avoided. Another option would be to reduce the purchase price further if gift tax would be due anyway.
But that is still theory.

It would be no problem for us to increase the working hours and thus, of course, the salary accordingly before October. A temporary (maybe 6 months) full-time position for my wife would also be conceivable, which would ease the financial factor even more.
But October would actually be optimal, since we still have quite a few travel plans this summer.

And if none of this works out optimally, then we'll just leave it. We're doing great with our previous model and we don't want to change that "just like that" in the long term.
As a 5-year plan +/- okay. But open-ended? No thanks.

Why we are currently working so little has health reasons. However, things are now moving back in the right direction and the future looks great again.

Nice that the flow is going in a positive direction again. However, one should not overdo it, because then one can quickly end up in a downward spiral.

Question about feasibility/sense

It may be that you currently manage with your income. Nevertheless, financially it does not look (rosy) as if you have money readily available for bigger leaps, i.e., also for investments that are far higher than an investment in a new PC system or even a car. There are often occasions in life when someone considers a seemingly "lucrative" offer, be it from an acquaintance, a colleague’s girlfriend, or as here, relatives. Often, one thinks one can better position one’s financial situation or later make a big profit through investment. However, most do not think about the fact that they have to anticipate financially. If you talk about an old house that belongs to you, on which there are still debts, and you additionally want to take out a mortgage, what if something needs to be repaired? How will that be paid for? I would, in your place, realistically consider your status where you currently stand and rather consolidate it with small steps than open a new construction site.

A lawyer friend said that since we grant them the lifelong right of residence, we will offset this, including a risk, and thus the gift tax can indeed be justifiedly avoided.

Sure, you could already read the calculation. Depending on the approach, you save between 70 and 100k on the gift amount and reduce the tax.

It would not be a problem for us to increase the working hours and thus, of course, the salary accordingly before October.

Let's turn it around.
Generously old and new rate about €1,500.
You need about €3,500 net income per month (including child benefit) in order to be considered capable of servicing the capital.
If you can generate such income, you can also finance 250k. Only from a bank's perspective. It does not take into account whether your living expenses fit this or whether the financing is healthy for you (i.e., the monthly burden).

Nice that the flow is moving in a positive direction again.
However, one should not overextend oneself, because then one can quickly end up in a downward spiral.

It may be that you are currently managing with your income. Nevertheless, financially it doesn’t look exactly (rosy) as if you have money readily available for bigger leaps, meaning investments that are far higher than an investment in a new PC system or even a car.
There are often occasions in someone’s life to consider a seemingly “lucrative” offer, whether from an acquaintance, a colleague’s girlfriend, or here relatives. Often, people think they can improve their financial position or later make a big profit through an investment. Most, however, do not think about the fact that they have to anticipate financially.
When you talk about an old house that you own, on which there are still debts and you additionally want to take out a mortgage, what happens if something needs to be repaired? How will that be paid? I would, in your place, realistically consider your current status and rather consolidate it step by step than open a new construction site.

I agree with you. We definitely need to think this through.
I have certain principles that I do not want to break.
For example, I have a reserve of about 50k as savings for the house and additionally 20k for vacations etc. However, such things disappear faster these days than you can blink.
But it should last us at least 3 more years until the little one is in school and I am better positioned professionally again.

Both cars are now 4 and 6 years old respectively. So repairs may be needed but no new purchase in the next 5-10 years.

Either both parties work part-time or not! I will not break this principle. We are simply doing too well as it is.

Sure, you could already read the calculation. Depending on the approach, you save between 70 and 100k on the gift amount and reduce the tax.

Let’s turn it around.
Generously old and new installment about €1,500.
You need about €3,500 net income per month (including child benefit) to be theoretically able to service the capital.
If you can generate such an income, you can also finance €250k. Only from a bank’s perspective. It does not take into account whether your lifestyle fits or whether the financing is healthy for you (i.e., the monthly burden).

That is absolutely doable for us. So, both from the bank’s point of view and from our actual lifestyle.

Thank you.

Every few weeks, a post comes along that is so far from reality that it can only be a troll.

Every few weeks there is a post so far from reality that it can only be a troll.

Which post are you referring to?