Knowledge · Guide · German law applies
Right-sizing your home.
The home in the years ahead — when, how, where to. Which phases the span from 65 to 85 holds, which housing options stand honestly side by side, and which pitfalls many recognise too late.
Updated: June 2026 · General orientation, not legal or tax advice in the individual case (§ 3 RDG, § 4 StBerG)
First, the answer
Right-sizing is not less — it is more precise. A span of twenty years is not one phase but four, and at every point three tensions act at once: preserving, experiencing, passing on. There is no reason to hurry. What has to be decided can be decided step by step.
The four phases, 65–85
Active (65–70). Working life lies behind you; the house is the base but is rarely stretched. Transition (70–75). The first changes of pace — the stairs come up once, the garden is larger than wanted; many right-sizing decisions fall here. Provision (75–80). Care is not present but conceivable; a healthcare proxy and a living will belong in this phase. Legacy (80–85). The question shifts from “How do we live?” to “What do we pass on?”.
Three tensions, spoken aloud
Preserving — the neighbourhood, the family doctor round the corner, the familiar routes. Experiencing — the journey that has been on the list for years; the time while grandchildren are near. Passing on — the house is often the family’s largest asset. None of these poles wins on its own. A good decision gives all three a voice.
When is it too early?
Three signs of a not yet: the house is sound (heating, roof, stairs compatible with your mobility); the wish comes from outside, not from your own feeling; the picture of the new living situation is still blurred. When all three are true, it usually helps to decide nothing for a year. The question does not go away, but it ripens.
When is it too late?
The other side, just as honestly: physical signs recur (falls, exhaustion); the maintenance backlog grows (heating, roof, old windows); the family is not nearby. In all three cases the question is not whether but by when — a window of two to three years is realistic for most.
Six housing options, honestly side by side
None is right for all, each for some: staying with barrier-reducing adaptations (long-term care fund grant of up to €4,180 per measure where a care grade is recognised); right-sizing within the region; moving closer to the children; multi-generational living; co-operative housing; assisted living. Permanent care accommodation carries its own logic — it is covered in the guide When care draws nearer.
The trap with older houses — duties under the GModG
Anyone selling an older home should know the insulation duties of the Building Modernisation Act — until July 2026 it was called the Building Energy Act: on a change of owner, obligations can pass over — insulating the top-floor ceiling (Section 35 GModG) and insulating accessible heating and hot-water pipes outside heated rooms (Section 69 GModG). Two years are allowed for this, counted from the transfer of ownership. The former duty to replace boilers older than 30 years was repealed on 29 July 2026. An honest energy assessment before the sale begins (a renovation roadmap from a BAFA energy adviser, around €800–1,300, often subsidised) takes off pressure and makes the investment transparent to buyers.
Keeping money to live on
Those who do not wish to give up ownership entirely have three models: a partial sale (sell a share, keep a right of residence, pay a usage fee), a life annuity (sale in exchange for a lifelong pension with a right of residence), and the rare, expensive German reverse mortgage. In all three: have a tax adviser and a consumer advice centre work the contract through — the monthly net burden over ten and twenty years is the central yardstick. And on a sale after more than ten years of personal use, as a rule no speculation tax arises (§ 23 EStG).
Key terms, clearly explained
- Insulation duties (Sections 35 and 69 GModG)
- Duties that pass over on a change of owner of older buildings — top-floor ceiling (Section 35) and accessible heating and hot-water pipes outside heated rooms (Section 69); two years to comply, counted from the transfer of ownership. The former duty to replace old constant-temperature boilers was repealed on 29 July 2026.
- Speculation period (Spekulationsfrist)
- The ten-year period for the taxation of gains on sales of private property (§ 23 EStG). Personal use protects against it.
- Partial sale (Teilverkauf)
- Sale of a share to a company with a simultaneous right of residence or usufruct — against a monthly usage fee.
- Usufruct (Nießbrauch)
- The right to use a property and draw its income without being its owner.
Frequently asked questions
- Is it too early if the house still carries you well?
- Often yes. If the heating, roof and stairs are compatible with your mobility, the wish does not come from outside, and the goal is still blurred, a year without a decision usually helps. The question ripens without your losing anything.
- Must I renovate an older house before selling?
- Not necessarily. On a change of owner, insulation obligations under the Building Modernisation Act (Sections 35 and 69 GModG) can pass over — that shifts the pool of buyers and the price rather than forcing the work. An energy assessment before the sale begins makes the investment transparent and takes off pressure.
- Is there tax on the sale?
- In most lifetime senior sales, no: anyone who has used or owned the house for more than ten years realises tax-free gains (§ 23 EStG). A tax adviser checks your particular constellation in advance.
- How do I keep money to live on and still stay?
- Through a partial sale, a life annuity or a reverse mortgage. Each model carries its own risks — what matters is the monthly net burden over ten and twenty years. Have every contract worked through in advance by a tax adviser and the consumer advice centre.
In depth
Transfer during your lifetime
Ordering early and with dignity.
More →Right of residence & usufruct
Stay living there, pass on value.
More →The right moment
When the transition is easiest.
More →Gifts and tax allowances
Shaping it via notary and tax adviser.
More →The family workshop
Deciding together at the table.
More →Ordering value without selling
Clarity without leaving the house.
More →Staying in the house and freeing up money
Partial sale, life annuity, reverse mortgage — honestly compared.
More →Barrier-free conversion instead of moving
Making the house fit for the years ahead.
More →First conversation free · reply within two working days
Your next step.
You do not have to decide anything today. If you like, we will first simply order your situation — anonymously and without obligation.