Hello everyone,
We have owned a plot of land for one year. It is not very large (389 m² (4185 ft²)), but the zoning plan allows quite a lot of development.
We have decided against building a single-family house ourselves.
Friends encouraged us to consider whether we might build a multi-family house on the property as an investment. Especially now that the KFW provides higher repayment subsidies.
Several ideas have emerged.
1. Build a multi-family house maximizing the living area, with all apartments rented out.
2. Build a three-family house, with one apartment per floor. We would live in the ground-floor apartment and rent out the upper and attic floors to two of my siblings.
3. Build a duplex with one of my siblings, where each of us would have and live in an independent condominium unit.
Would you consider doing something like this, or is there anyone here who has already done something similar?
What is the best way to proceed? Should we request offers for all three options and then choose the best one?
We have owned a plot of land for one year. It is not very large (389 m² (4185 ft²)), but the zoning plan allows quite a lot of development.
We have decided against building a single-family house ourselves.
Friends encouraged us to consider whether we might build a multi-family house on the property as an investment. Especially now that the KFW provides higher repayment subsidies.
Several ideas have emerged.
1. Build a multi-family house maximizing the living area, with all apartments rented out.
2. Build a three-family house, with one apartment per floor. We would live in the ground-floor apartment and rent out the upper and attic floors to two of my siblings.
3. Build a duplex with one of my siblings, where each of us would have and live in an independent condominium unit.
Would you consider doing something like this, or is there anyone here who has already done something similar?
What is the best way to proceed? Should we request offers for all three options and then choose the best one?
N
nordanney31 Jan 2020 11:48Yaso2.0 schrieb:
Once you start writing, you realize it yourself... there are probably many reasons to go for larger apartments. oops:Yep. And maybe consider putting two apartments in the attic, including a kitchenette for rental purposes. But you’ll need to check if there is demand for that.
nordanney schrieb:
Yep.
And as an idea, maybe two apartments in the attic with kitchenettes for rent. But you’d have to check if there’s demand for that. This area is more of a neighborhood for couples with children or older residents whose children have already left home. From what I’ve observed, there aren’t many young people or those who would be satisfied with a small apartment here.
I’m meeting a friend today whose friend is an architect. We just want to have an informal chat to hear what ideas she might have. But I didn’t want to go into the conversation completely unprepared!
Thanks a lot for your input in any case!!
Yaso2.0 schrieb:
Would it make sense to accommodate as many residential units as possible (for example, 5 smaller apartments: 2 on the ground floor, 2 on the first floor, and 1 in the attic)? That sounds like a typical amateur landlord’s naive idea. No understanding of building classifications, property management, market conditions, and so on, just the unrealistic dream of turning into a real estate mogul overnight.
The idea might work if you are under intense pressure to invest urgently and can apply this approach to eight different cities—provided there is demand in each local market. If you only have funds for this one property—or worse, would need to borrow money—and demand is only mediocre and not specifically waiting for your offer, I’d suggest putting this idea to rest with a glass of eggnog and moving on.
The days when owning a portfolio of just a quarter to half a dozen units guaranteed better returns than conservative investments have long passed; they now belong in the graveyard alongside the old currency.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
M
Matthew0331 Jan 2020 13:55Based on the description of the area, it should currently be possible to achieve a very good price for the building plot. So before I, as a beginner landlord, attempt a trial on my own, make an upfront financial commitment, and take a path that could be prone to mistakes, I would simply sell the land promptly and without complications to the highest bidder.
Ask yourself how much additional return the landlord approach needs to generate to justify the effort, and whether and how quickly that can realistically be achieved...
Ask yourself how much additional return the landlord approach needs to generate to justify the effort, and whether and how quickly that can realistically be achieved...
Matthew03 schrieb:
Based on the description of the surroundings, you should currently be able to get a very good price for the building plot. What do you mean by the description of the area? In the site plan, I see a greenhouse and, opposite, a development that looks like a farming village with older buildings; reading about a nearby daycare seems to me like the swallow that doesn’t make a summer on its own. I don’t see any indication of a university city or financial center here, not even a sign of an affluent commuter belt. To me, this description sounds more like a location far below the radar of property investors.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
M
Matthew0331 Jan 2020 14:33Yaso2.0 schrieb:
Daycare center Yaso2.0 schrieb:
Primary school is only 500m (550 yards) away Yaso2.0 schrieb:
Secondary school also just 1.5km (1 mile) away Yaso2.0 schrieb:
17km (11 miles) from the city center Yaso2.0 schrieb:
Train station 1.5km (1 mile) Yaso2.0 schrieb:
Highway entrance 1.5km (1 mile) Yaso2.0 schrieb:
All shopping and medical services within walking distance All of this combined is clearly more than what we have here, and prices are skyrocketing.
If I can live quietly, reach everything on foot, and also have the train station right outside my door that connects me to a city in 5 minutes (how big is the city, @Yaso2.0? )... then this is not the middle of nowhere and definitely not off anyone’s radar.