Take more credit or sell?

Thank you for your input, there are some good approaches there!

The thought that goes through my mind regarding a possible apartment sale: The remaining debt (70,000 in the worst case calculated with a buffer) will be paid off in 7-10 years with normal amortization and thanks to 1-2 special repayments that we can make due to a secure allowance.

From the point of being debt-free, we will have an income of about 4,500 net (my wife would most likely work 50% as a civil servant). So we would have enough potential to save for retirement again. Would I then regret selling the property?

: I know, I know . The equipment we are luckily already having (especially the stroller) is worth as much as a used Opel Corsa^^. Childcare is free in RLP

Hello, with twins you have 2x the entitlement to parental allowance. And why are you only getting 900 euros parental allowance? My parental allowance entitlement was higher, even though I, also a civil servant, have a significantly lower net income.

Regarding the apartment: The tip about the tax advisor has already been given. I would definitely do that. And considering the current interest rate situation, a paid owner-occupied apartment in a good location is not the worst thing, provided the rental works out. If the loan repayment becomes too tight, the apartment can still be sold. But you are already bringing in a decent amount of equity. I would keep the apartment.

Especially since you can continue to use the existing mortgage of the apartment as collateral.

For twins, there has been a change since 01.01.2015 that parental allowance is only paid per birth and no longer per child. However, the multiple birth supplement still exists.

: Unfortunately, there was a new ruling. From 01.01.2015 onwards, there is only 1x basic salary + surcharge. 900 € are 1,800 split over 2 years.

Edit: nordanney was faster

If you rent out, definitely talk to a tax advisor beforehand. If you take out the loan on the house, the loan interest is not tax-deductible for rental and leasing. However, if you take out the loan on the apartment, you can claim the interest in the tax return. Presumably, the loan needs to be split. Then pay off the loan on the house as quickly as possible and repay the loan on the apartment subordinately.

My goodness, that changes every year.....one could get too much...learned something new again, thanks!