ᐅ Sell the entire property or opt for a partial sale with reinvestment?
Created on: 10 Jun 2018 13:41
K
kaho674
There is a large property in the family located in the center of Dresden. It is a residential area—surrounded by 6-story or even taller new apartment buildings. The land is currently occupied by a very old factory building. The owners do not have the funds to demolish this building and replace it with modern new construction. On the other hand, the ongoing costs and rental income are just about breaking even. If income continues to decline, the property could financially ruin the family.
So the question is what should happen with this "factory land." It is quite certain that it could be completely redeveloped since there are multi-family buildings all around. Adjacent to this land is the family’s own business property (including land), which is not intended to be sold as it is their livelihood.
The immediate idea was, of course, to sell the entire factory land. Its value is estimated at around 1-2 million (minus demolition costs), without going into details here. The money could be taken, divided among the family, and essentially spent without long-term benefit.
However, there are also grandchildren who are struggling to establish themselves in Dresden. The family would like to support them over the long term and believes that a rental property would be ideal. Coincidentally, the grandchildren are trained in property management and could help oversee the project.
So the idea came up to sell only part of the land to gain liquidity, demolish the old building, and construct a multi-family house—ideally in collaboration with an investor who would buy and develop the other half. Of course, everything would need to be carefully calculated to see if this is feasible and if the land will generate enough value.
Is something like this possible, or is it just a scam? What would you do?
So the question is what should happen with this "factory land." It is quite certain that it could be completely redeveloped since there are multi-family buildings all around. Adjacent to this land is the family’s own business property (including land), which is not intended to be sold as it is their livelihood.
The immediate idea was, of course, to sell the entire factory land. Its value is estimated at around 1-2 million (minus demolition costs), without going into details here. The money could be taken, divided among the family, and essentially spent without long-term benefit.
However, there are also grandchildren who are struggling to establish themselves in Dresden. The family would like to support them over the long term and believes that a rental property would be ideal. Coincidentally, the grandchildren are trained in property management and could help oversee the project.
So the idea came up to sell only part of the land to gain liquidity, demolish the old building, and construct a multi-family house—ideally in collaboration with an investor who would buy and develop the other half. Of course, everything would need to be carefully calculated to see if this is feasible and if the land will generate enough value.
Is something like this possible, or is it just a scam? What would you do?
kaho674 schrieb:
Can anyone recommend a masonry material with top ratings for sound insulation [...] as a partition between apartments, It should of course also provide appropriate fire protection. For sound insulation, it’s important that the wall itself doesn’t act as a sound bridge. So, a wall built on a common screed surface between the rooms to be separated would perform poorly, even if it is otherwise ideal.
However, I would leave these technical details entirely to the professional planners. As an (co-)investor or initiator, focusing on the overall usage concept is usually sufficient.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
11ant schrieb:
But I would leave such matters completely unemotionally to the professional planners,...Professional planners now? This is the perfect shell house for hobby builders. The walls are already up...kaho674 schrieb:
It's the perfect small expansion house for hobby craftsmen. Yes, of course, polystyrene formwork blocks with popcorn aggregate in the concrete fill.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
It currently looks very likely that the existing building will be renovated after all, but gradually. Well, I don’t have much say in this decision. I would personally prefer a quick overhaul so that funds start flowing back sooner, but okay.
In any case, the planner has now stated that the 60cm (24 inches) thick brick walls of the building no longer comply with the energy-saving regulations. Insulation would need to be added on the outside. That really surprised me. It is a simple brick wall, true. But 60cm (24 inches) is not enough? On one side, it is even 65cm (26 inches) thick. Could he be right?
In any case, the planner has now stated that the 60cm (24 inches) thick brick walls of the building no longer comply with the energy-saving regulations. Insulation would need to be added on the outside. That really surprised me. It is a simple brick wall, true. But 60cm (24 inches) is not enough? On one side, it is even 65cm (26 inches) thick. Could he be right?
kaho674 schrieb:
Definitely, the planner now says that the 60cm (24 inches) thick brick walls of the building no longer meet the energy saving regulations. Insulation would have to be added on the outside. That really surprises me. It’s just a simple brick wall, okay. But 60cm (24 inches) isn’t enough? On one side it’s even 65cm (26 inches). Could he be right? Oh, so now there actually is a planner? Until now it was only an "advisor." Let me put it this way: if you enter only the wall thickness into an energy saving regulation wall build-up calculator, without knowing the exact structure and materials, it will always suggest "something needs to be added." In principle, you can create thermal bridges with almost any material if the design is flawed, so thickness alone won’t help. But so far, I had the impression that people were talking a lot without much regard for the facts. Are they actually expecting fees for this kind of talk?
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
That’s still the same guy. What should I call him? Mr. X!
I’ve looked at this lambda calculation. I’ll have to study it more closely later. In any case, this wall is very straightforward. It’s just the brick. Nothing else. Later, there will be plaster applied. But he knows that. And we want to eliminate thermal bridges—like around windows, for example. No other thermal bridges are known; it’s a solid block.
He will probably want a fee. So far, no invoice has arrived. I’ve already said they should be careful and also discuss consultation fees. We’ll see.
I’ve looked at this lambda calculation. I’ll have to study it more closely later. In any case, this wall is very straightforward. It’s just the brick. Nothing else. Later, there will be plaster applied. But he knows that. And we want to eliminate thermal bridges—like around windows, for example. No other thermal bridges are known; it’s a solid block.
He will probably want a fee. So far, no invoice has arrived. I’ve already said they should be careful and also discuss consultation fees. We’ll see.
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