New construction with existing debt - feasibility question

So I expect goodwill from the bank if we take the new loan from the same bank. Now, if the children move away, I would sell both houses anyway. It is not a pro or con argument for us. It is just a matter of luck to be allowed to buy this one property at all.

Well, goodwill is a tricky thing ))) but maybe a collateral swap, that is an object change, is possible plus an increase in the loan. I also find it difficult.

I think there was a sensible contribution. The rest was just "do this, do that, renovate, I would prefer it that way, old house is great, blah blah."

So: I am not a person with financing knowledge. That beforehand.
My suggestion: go to your currently financing bank and discuss it with them. You can always get out of the loan itself when selling.
Maybe they are also willing to waive part of the prepayment penalty if you refinance with them.
Here, they often talk about net salary x 100 in terms of "healthy financing." You would still be within that.

I entered the numbers online and came to almost 27 years term with a 2600€ rate including interest.
You currently have 1600€ + 1500€ savings rate. That means it would work.
For the sale during the construction, there are several options.
1. Sell, payment before handover, and rent to the new owner
2. Sell, 4-room apartment for the transition
3. Bridge finance and only sell when completion is in sight.

So there are possibilities, provided the bank cooperates, you can handle some stress, and you want it.

A nice high income, with that a lot is possible, you can also implement this project.

I had to smile about financed iPads. I also noticed the (missing consideration of the prepayment penalty). But you should be able to clarify quickly whether your bank agrees to a property swap, or how high the compensation would be. How long have you had the current property? How long until the special termination after 10 years?

House construction currently without garden work at around 500,000€ +-40,000 depending on Bauträger.

Is it really a plot including Bauträger? Later it reads more like a free plot. If it really is a Bauträger, substantial additional taxes will come on top.

The new building is worth more than the investment already from the moment of occupancy.

No, you're just convincing yourself of that. According to the standard land value, the land is worth 210,000€, with a purchase including taxes of 200,000€, which is positive, but I do wonder how you got the land if it is supposedly worth so much more because of the location.

How big is the house? (Living area / usable area) Planned 200 sqm plus habitable basement

That will be quite large. Were the estimated 500,000€ given by construction companies? Were ancillary construction costs properly considered?

I think there was a sensible contribution here. The rest was just "do this, do that, renovate, I would prefer it that way, old house is great, blah blah."

So: I’m not a person with financing knowledge. Just so you know.
My suggestion: go to your current financing bank and discuss it with them. You can always get out of the loan when you sell.
Maybe they will also agree to waive part of the prepayment penalty if you refinance with them.
Here it is often said net income times 100, in terms of "healthy financing." You would still be within that.

I entered the numbers online and came to just under 27 years term with a €2600 rate including interest.
You now have €1600 + €1500 savings rate. That means it would work.
For selling during construction there are several options.
1. Sell, payment before handover and rent to the new owner
2. Sell, 4-room apartment for the transition
3. Bridge finance and sell only once completion is in sight.

So there are possibilities, provided the bank cooperates, you can endure some stress and you want to.

I googled the €2600 over 27 years as well.

The bank would even go so far that we continue paying the interest for the house (€300) and stop the building savings contract, as we contractually commit to sell the house. That means we would have to sell the house within the next 6 years and pay €3600 per year in interest for 6 years no matter how it goes. Then we could even rent it out. That came through the banker's audio message. Sounds too good to be true at first. I will do a WebEx with him later and try to clarify that. Currently paying €1300 into a building savings contract and €300 fixed to the bank. In 6 years the building savings contract would basically replace the bank loan. That way we would have to swallow the €3500 building savings fee and the €20,000 interest. But overall, financially it is still worth it.

A nice high income, that makes a lot possible, you can also implement this project.

I chuckled about the financed iPad. Also noticeable was the (missing consideration of the prepayment penalty). But you should be able to quickly clarify whether your bank allows a property exchange, and what the penalty would be. How long have you had the current property? How long is it until the special termination after 10 years?

Is it really a plot including a developer? Later it reads more like a free plot. If it really is a developer, there will be hefty taxes on top.

No, you’re flattering yourself. According to the official land value, the land is worth €210,000, with a purchase including taxes of €200,000 that’s positive, but I wonder how you got the plot if it’s worth so much more because of the location.

It will be big. Have the estimated €500,000 been named by construction companies? Are the ancillary construction costs properly considered?

So we get the plot from the city at the current land value of about €350/m². From private parties here it costs rather €450/m².

Newer houses in the same location with significantly less living and garden space cost from €850,000 and are also sold relatively quickly.

So we currently have an offer for €550,000 including ancillary construction costs turnkey as a fixed price. But we haven’t seen the plans yet, maybe they cut some living space or forgot the basement. But it is the most expensive construction company in the area according to many contacts, so I don’t think it should get much more expensive. It was agreed that one bathroom is only prepared, meaning only connections exist and nothing else done, and in the basement everything is also only prepared, so only screed finished and electricity. The attic is also only prepared. That would work for us, as currently the third children's room is an office and the third bathroom the other office. The third bathroom is an option if it escalates with three children to have two shower options.

Over time we would then complete everything in €10,000 packages.

Garden including terrace is at €50,000, I was told. You guys surely know better if that’s correct. We can get that money from another source in approximately 2 years.

We are now trying to find a model with the bank that relieves us from the time pressure of moving. Let’s see if that works. The building permit must be applied for this year and then you have 3 years to move in.

So, a few updates and I need a second opinion:

So our bank wants the repayment to be made in full until the current house is sold.

I wanted to partially finance the plot anyway with a fully variable loan. I have an offer with 1.7% interest and I can pay off any day from any other bank. We are now getting the plot a bit cheaper for €160,000. Are 1.7% usual for bridge financing? Because that doesn’t sound too bad at first.

What are some smart ways to sell an inhabited financed house while building a new one? Sure, I can pay rent to the new owner, but then I can almost keep repaying the loan.

I’m running out of ideas, but our bank says that two houses simultaneously are not financeable for us either, since building a house is also getting more expensive.

We currently have only one offer where we say, this is what our dream house looks like (small adjustments to the plans necessary, but all minor).

Currently we are planning 180m2 living space with 70m2 habitable basement area and it should cost €570,000. We can’t do any DIY and have zero knowledge. So we want a construction company to do everything fully, hence the hefty price.

What intelligent ways are there to sell an occupied financed house while building a new one?

The same as for an unoccupied and paid-off house. The handover date is postponed far into the future. Or far ahead, then living temporarily for over 2 years in a rental property.

Total expenses 7100€/month

That’s quite a lot. And even with 3 small children, many things remain unexplained. Personally, I don’t care what you spend your money on, but your very good salary also disappears very quickly for nothing.
On the other hand, funds for later are being used, which then aren’t available at all?!

So we currently have an offer for 550,000€ including ancillary building costs turnkey as a fixed price.

Then please read the subheading about construction costs in this forum.

We can obtain the money in about 2 years from another source.

Apparently, the source must serve not only for the garden but also for all the finishing work, which is not included in your offer. There is actually quite a lot that is “only prepared”…

We can’t do any handy work and have zero knowledge. So we want a construction company to do everything, hence the hefty price.

The price is not hefty. And there will be quite a bit more on top, I promise you. During the house construction.

It has many small rooms. Living room 17sqm. Dining room 15sqm. Kitchen max 9sqm etc...

Above all, we now have a north garden and there a southeast garden.

I find 41sqm for the open space or used living area for living, dining, and kitchen not exactly small.
Sure, with your salary one would think, why not build somewhat bigger? But there is a question mark regarding missing capital, incomplete calculation with a fixed price...
You have to decide... in 5 years there will be a house with a west garden — then what?