Sell old house, build new house with the money - experiences

Hello,

I have a question about what options there are.
We want to sell our old house and build a new house with the money, plus a small financing.

Option A: Sell the old house, pay for the new house or land with it. Risk: loss of value of money between purchases?
Option B: Short-term financing, (if such a thing exists) + build the new house, then sell the old house
Option C: ???

What do you think?

Thanks!

Regards
Rainer

A bit little information. Is the current house still under financing? If yes, then one could consider an object change for C. Is it quick to sell or rather unattractive on the market? Regarding B: it is called [Zwischenfinanzierung].

Yes, 30,000 EUR are still in the financing... Yes, it should sell quickly, good location, good amenities.

Risk: Devaluation of money between purchases?

What kind of devaluation of money? I am always a fan of selling your house NOW and continuing to live there as a tenant for a period X. Then you have - apart from possible cost increases in the new construction, which can always happen - no vulnerable points. Equity - safe. Financing - safe. Interest rates - safe.

The first house is the hardest and you have almost managed it.

Option C: I have already granted a free right of use for 12 months during the construction period. To make it attractive for the buyer, I deducted about 80% of the annual rent from the purchase price. The buyer saves 7.5% real estate transfer tax and notary fees on the annual rent.

The buyer also does not have to pay income tax since they do not receive rent from me.

In a good location, you will probably find someone and have money immediately.

But the timing also has to be right.

The buyer saves 7.5% property transfer tax and notary fees on the annual rent.

But it reduces the value of the house for the bank. In tight financing situations (which is not the case here), that can go wrong (as well as high inventory costs to save taxes). It should not actually save notary fees, since the right of use also has a value that is included in the cost calculation – thus cost-neutral.