New job, new city, new house?

You had originally planned to stay in your beloved home well into old age. But now a new job beckons – in another city. This raises the question: What happens to your property now? Using the Müller family as an example, we want to show you what options you have and what you need to consider.

Ms. Müller took three years of parental leave after the birth of her son. Now she wants to return to work and has found her dream job in Nuremberg. The problem: Ms. Müller lives with her family in Stuttgart. The new job would mean a two-hour commute each morning and evening. Unless, of course, the family moves. But they only bought their cozy terraced house a few years ago. They had planned to grow old there and raise their children. Is the new job worth giving up that dream?

Ms. Müller discusses her dilemma with her husband. As a self-employed architect, he travels a lot anyway and can theoretically work from anywhere, including Nuremberg. Commuting is out of the question for Ms. Müller. After all, she wants to spend as much time as possible with her young son. But she doesn't want to give up the job because of their current house either.

So, moving is the only option. Now, many decisions need to be made. Will you look for something to buy or rent in Nuremberg, and what will happen to your current property? Sell it or rent it out? Renting would have the advantage of allowing you to easily return to Munich at any time. However, selling would give you more money for a new home.

The Müllers set out to find new accommodation in Nuremberg. There, they find a house for sale right near Mrs. Müller's new workplace. If that isn't a sign of fate! To finance the new house, however, they have to sell the old one.

Now everything needs to happen very quickly so that nothing stands in the way of Mrs. Müller's career start. The family has therefore decided to focus entirely on moving into their new property and leave the sale to a professional real estate agent. In their current situation, the Müllers have very little time to compile all the necessary documents, market the property, schedule viewings, and negotiate the price. They've seen firsthand from friends who sold their houses privately how much work is involved – and how lengthy the sales process can be without the necessary expertise.

They were therefore pleased that the real estate agent who sold them the house in Nuremberg was also able to recommend a competent colleague in Munich. When he assessed the value of their property, they could hardly believe it: since they had bought the house five years earlier, its value had increased enormously. Because they had lived in their property for more than three years, they fortunately didn't have to pay any capital gains tax on it, but could instead use the profit directly to pay off the mortgage on their new house. Capital gains tax is levied when owners sell their property again after less than ten years. An exception applies if they have lived in the property for the three years prior to the sale.

Are you planning to move to a new city and want to sell your property? Contact us now. We'd be happy to help.

Photo: © ArturVerkhovetsky/Depositphotos.com