Rebuild again, despite existing real estate financing

Well, the misconception about renting out is that a single-family house 'pays for itself' through the cold rent. This is usually not the case. Perhaps the installment is covered, but then reserves, taxes from rental income, etc. are still missing. Single-family houses are generally not particularly profitable rental properties. You can do it, it might work, but it really doesn’t have to. So calculate carefully and think it over again. It is also important whether you live near the rented property and whether you can do small repairs yourself. If not, and you need a manager and craftsmen for every little thing, it will definitely become a losing business.

Hello everyone,

just wanted to give a brief update.

I was at my home bank today. As previously assumed. Either sell the current house with early repayment, or continue renting it out.

A new loan wouldn’t be a problem since the current house counts as equity. Now it’s just a matter of securing the allocation for a building plot. That will probably be decided at the beginning of next year. Most likely we will refinance 100% and rent out the old house for another 5 years to avoid early repayment penalties. This is at least our current plan.

Everything concrete only once it works out with the building plot. Keep your fingers crossed for us

I will report back in due course and will surely bother you with more questions regarding the floor plan, etc.

With that in mind, thanks in advance! I will of course continue to follow this forum with interest.

A security exchange might also be a solution for you:

You take over the old loan on the new property and conclude a new one for the difference amount. The advantage is that instead of the VFE, you only pay a fee for the transfer of the mortgage (90€ at our Sparkasse). The catch is that you have to conclude the new loan with the previous one, as no other will go into second rank.