ᐅ Rental House – Prefabricated House or Traditional Brick Construction

Created on: 13 Feb 2017 13:51
D
Dimma
We want to build a house to rent out. Nothing "fancy," just two apartments stacked on top of each other (each about 90 sqm (970 sq ft)), with two garages...
We are currently undecided about what makes more sense: a prefabricated house or a conventional brick-built house?
We have found that there is probably not much difference in price.
It should be a turnkey house. Financing is not an issue due to an inheritance, and the building plot is already available.
Can anyone offer some guidance or points to consider?
We are complete beginners when it comes to building a house, and the construction companies can say a lot.
What should we pay attention to?
11ant14 Feb 2017 14:08
Peanuts74 schrieb:
It’s not always that simple, you have to consider each case individually...

That’s clear. But shifting the focus away from the amateur instinct to think technically about construction, toward the financial aspects that deserve special attention in rental properties, makes sense and is more clearly illustrated with simple “round numbers.” Of course, reality is more complex and individual.
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N
Nordlys
14 Feb 2017 14:19
That's right. I want to live in my own house. I want to make a living from the rental property. This represents a fundamental paradigm shift that extends into the technical aspects of construction but also involves other factors. Take the example of guest toilets. If having four guest toilets in four residential units adds 40,000 more in costs, I need to get around 3,000 more in annual rent; otherwise, it is not worthwhile.
11ant14 Feb 2017 15:03
Nordlys schrieb:
The example with the guest toilets. If having four guest toilets in four housing units costs 40,000 more, I would need to get about 3,000 more in annual rent, otherwise it’s not worth it.

I have to admit you are right mathematically, but the attractiveness of the apartment also plays a role: 90 sqm (970 sq ft) is a size where you don’t just get potential tenants who need the space because of their family situation. You also get those who need less space but earn well. And from those, the lady of the house would like her partner to move to the small toilet when she is doing her makeup in the bathroom. And he would also prefer that because he can quietly read the sports section there. Without a guest toilet, the lady might say “no” during the viewing, leaving only tenants with two teenage kids as prospects.

It’s the same issue with an apartment floor versus a semi-detached house: the latter is nicer for young families, like owning a home, just renting. Retirees think: who knows how long we will still want to climb stairs inside the apartment.
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https://www.linkedin.com/company/bauen-jetzt/
Y
ypg
14 Feb 2017 16:43
By the way: Has our question regarding the DH already been answered?

Best regards, Yvonne
Musketier14 Feb 2017 17:36
In my opinion, a semi-detached house is, after a detached single-family home, the least favorable option, as houses generally offer the lowest returns. Everyone wants a garden at the house, but nobody wants to pay higher rent accordingly.

From an economic perspective, it usually makes more sense to increase the number of apartments and design the entire building as a multi-family property with, for example, 4 or 5 units, provided that the zoning regulations (building permit / planning permission) allow it. This way, several benefits can be achieved at once.

-> better returns on invested equity through the use of leverage
-> tax advantages due to interest expenses
-> more efficient use of the available land (ratio of rentable area to land area)
-> improved ratio of rented space to shared areas/facilities (e.g., heating, stairwell, laundry room)
A
Alex85
14 Feb 2017 17:45
@Musketier

... and less risk of clustering, since there are more housing units