Sell an apartment from a two-family house immediately after completion

Hello home builder,

I have a building plot but cannot/will not afford to build a single-family house on it. What is it like if I have a two-family house built on it and sell one residential unit again shortly after completion? This would make my remaining residential unit significantly cheaper (after I have of course advanced the construction of the second residential unit).

Specific questions:
1. Is the KFW funding tied to a condition that I must keep both residential units for a certain period?
2.a) Is there a way to minimize/avoid the speculation tax? One approach would be, for example, to live in both apartments for the first two years and then sell one.
2.b) Referring to the attached picture: When do the 2 years of owner-occupation begin? Is time possibly counted here when I was the landowner without a property on it?
3) Does anyone have experience with selling a new apartment shortly after completion and have some tips ready?

Many thanks and greetings from Bob

To my knowledge, the sale is also tax-free if there was exclusively owner-occupation from construction to sale, even if that is less than 2 years.

2.b) Based on the attached image: When do the 2 years of owner-occupation begin? Is time possibly also counted here during which I was the landowner without a building on it?

No, from the completion of the building, but see first answer.

1. Is the KFW subsidy tied to a condition that I must keep both residential units for a certain period of time?

No. But keep in mind that the buyer then cannot receive any subsidy. Therefore, he will pay you a slightly lower price. Give and take...

2.a) Is there a way to minimize/avoid the speculation tax? One approach would be, for example, to live in both apartments for the first two years and then sell one.

If you manage to live in two apartments simultaneously and can credibly and plausibly demonstrate this to the tax office (there are no stupid people working there!), then yes. But I doubt that. Or can children live in the apartment? Then it would be equivalent to owner-occupation, provided the children appear on your tax return (child benefits, etc.). BUT: After two years you sell a used apartment and not a new build. In the worst case (currently purchase prices are partly declining and I do not assume prices will continue to rise sky-high) the depreciation is greater than the saved speculation tax. Be glad if you have to pay taxes, because that means you first earned good money and later, despite taxes, more than before.

2.b) Based on the attached picture: When does the 2-year owner-occupation period begin? Is time counted here during which I owned land without a building on it?

Part 1: There is no 2-year period Part 2: No

3) Does anyone have experience selling a new apartment shortly after completion and some tips?

Sell like any other property. Sold within 24 hours without a realtor in a good location.

Careful, I’m about to make myself unpopular… If you can’t/won’t afford it, then don’t do it. I also believe that the forum should not provide assistance for that. These rules have their reasons and that’s a good thing. There are specialists for that. It doesn’t make the situation better if living space becomes a speculative object, but at least someone has earned from it.

Why don’t you find someone who buys half of the property and you build a double half together?

No

In my opinion, there is indeed a 10-year period with KfW funding. At least there is one for the provision of residential units. How does it look in case of a sale?

2.a) Is there a way to minimize/avoid the speculation tax? One approach would be, for example, to live in both apartments for the first two years and then sell one.

You could first complete one residential unit and move in there. Then you finish the second residential unit and move. Then a sale of the first residential unit is not taxable because you exclusively used the first apartment yourself (no retention period required).

In my opinion, there is indeed a 10-year period for KfW funding. At least, this applies to the provision of residential units.
What about selling?

The property itself must remain in the KfW condition for 10 years. Example: The buyer of the apartment feels the apartment does not "breathe" enough and simply has glazed windows installed that are quite drafty like in the past. Then the apartment is no longer in the approved KfW condition and KfW could demand the funding back.
Therefore, the purchase contract includes a clause that the buyer agrees to maintain the apartment in the KfW condition during the period. You then pass on your obligations.
Otherwise, there are no restrictions from KfW. That is why developers can pocket the funding for themselves and you, as a buyer, end up empty-handed.

You could first complete one residential unit and move in there.
Then you complete the 2nd residential unit and move.
Then selling the 1st residential unit is not taxable because you have exclusively used the 1st apartment yourself (no holding period required).

The tax office might not go along with that if it thinks it through. Because moving just to save taxes, from one place to another, could be interpreted negatively. Could be, but doesn't have to be.