ᐅ Duplex as a single residential unit or two "half-houses" – What should be considered?
Created on: 12 Oct 2018 11:38
R
RomeoZwo
Hello,
As part of the preliminary planning for developing a plot of land with possibly a semi-detached house as an investment, both units are initially intended for rental. One unit might be used personally later on (in 15-20 years).
I am considering whether to build them as fully separate units or as a multi-family house (WEH). Especially since I have also seen hybrid solutions offered by prefab house manufacturers. I would appreciate your opinions on my considerations...
Separate semi-detached house:
- Easier to sell individually after possible subdivision of the plot
- Better sound insulation between the two homes
- Separate technical systems for each house → redundancy and clear cost allocation
- Easier sale of "one half" in case of emergency (really?)
Multi-family house (WEH):
- Only one technical system needed (probably cheaper)
- Slightly smaller space requirement for the dividing wall
- More options for asymmetrical layouts
What do you think about these points? Are there any additional aspects to consider?
Thank you very much
As part of the preliminary planning for developing a plot of land with possibly a semi-detached house as an investment, both units are initially intended for rental. One unit might be used personally later on (in 15-20 years).
I am considering whether to build them as fully separate units or as a multi-family house (WEH). Especially since I have also seen hybrid solutions offered by prefab house manufacturers. I would appreciate your opinions on my considerations...
Separate semi-detached house:
- Easier to sell individually after possible subdivision of the plot
- Better sound insulation between the two homes
- Separate technical systems for each house → redundancy and clear cost allocation
- Easier sale of "one half" in case of emergency (really?)
Multi-family house (WEH):
- Only one technical system needed (probably cheaper)
- Slightly smaller space requirement for the dividing wall
- More options for asymmetrical layouts
What do you think about these points? Are there any additional aspects to consider?
Thank you very much
11ant schrieb:
In my opinion, building wealth as a landlord can only succeed if the same property is built three, four, or five times. Objection, your honor ;-)
Owner-occupation is consumption, renting out is investment. Depending on your salary, there is also a tax leverage effect. This needs to be managed reasonably well.
11ant schrieb:
Before saving rent elsewhere – to me that seems economically very questionable. Building a single-family house is financially the biggest nonsense. ;-)
If you assume a few basic conditions, it actually makes financial sense:
- married, 5,000 € net income, fully paid-off residential property for own use
- semi-detached house costing around 300,000 €, max. 350,000 € each
- 4% interest and amortization: 1,000 - 1,150 €
- rental income: at least 1,200 € per unit, net of utilities
After 20 years, about 50% is paid off with almost zero personal labor.
Only remaining risks are concentration risk and the chance that something seriously goes wrong in the meantime.
With an unpaid residential property, it is possible too, but you have to be willing to take on significant risk.
Hello,
So, the plot of land with 810m2 (8,700 square feet) is available and currently unused. There is no building plan or zoning permit since it is classified as an outside development area. In recent years, neighboring plots have gradually been developed beyond the official building limit through special permits. When I inquired, the municipality also mentioned the possibility of obtaining a special permit for my plot. However, the area should maintain the character of a single-family home neighborhood, so no multi-family buildings with stairwells are allowed. On the neighboring plots, buildings constructed under special permits ranged from 120m2 (1,290 square feet) prefabricated houses to duplexes, up to 350m2 (3,770 square feet) Bauhaus-style villas.
For the project, equity of about 30-40% of the plot value is available (whether all of it will be used is to be calculated by my tax advisor). Building a house for personal use is not an option either, as my wife probably wouldn’t be too happy if I moved out ;-)
I hadn’t previously considered the issue of potential tenants in the current low-interest-rate environment. Among my acquaintances, there are families who rent houses due to job flexibility and usually stay in one location for 7-10 years. But such tenants are certainly not easy to find.
Basically, there is no rush for this project, so waiting until the construction boom slows down is definitely an option. Hopefully, by then the municipality will not have developed its own new residential area and be focused on "filling that first."
So, the plot of land with 810m2 (8,700 square feet) is available and currently unused. There is no building plan or zoning permit since it is classified as an outside development area. In recent years, neighboring plots have gradually been developed beyond the official building limit through special permits. When I inquired, the municipality also mentioned the possibility of obtaining a special permit for my plot. However, the area should maintain the character of a single-family home neighborhood, so no multi-family buildings with stairwells are allowed. On the neighboring plots, buildings constructed under special permits ranged from 120m2 (1,290 square feet) prefabricated houses to duplexes, up to 350m2 (3,770 square feet) Bauhaus-style villas.
For the project, equity of about 30-40% of the plot value is available (whether all of it will be used is to be calculated by my tax advisor). Building a house for personal use is not an option either, as my wife probably wouldn’t be too happy if I moved out ;-)
I hadn’t previously considered the issue of potential tenants in the current low-interest-rate environment. Among my acquaintances, there are families who rent houses due to job flexibility and usually stay in one location for 7-10 years. But such tenants are certainly not easy to find.
Basically, there is no rush for this project, so waiting until the construction boom slows down is definitely an option. Hopefully, by then the municipality will not have developed its own new residential area and be focused on "filling that first."
RomeoZwo schrieb:
my wife would probably be less thrilled if I moved out on her ;-) .Are you not allowed to move in with her?
Jokes aside: with 800 m² (8,600 sq ft) in an outer development zone, I can imagine that a subdivision is not an option.
M
Mottenhausen15 Oct 2018 00:26It was the same for us: kids, a garden would be great, oh, you can also rent detached houses. Then we realized that with the same amount of money, we could build our own... By the way, the rental house has been vacant for half a year. It was only built for the purpose of renting, on the owner’s land… as a retirement investment. Currently, you can see that the owner is lowering the rental price in the listing by about €25 – €50 per month… let’s see how much further it goes down. But: the location is unfavorable, so I wouldn’t put too much value on that. There are also locations where your new house would be snapped up and potential renters would outbid each other…
Mottenhausen schrieb:
There are also locations where people would compete fiercely for your new house and potential tenants would outbid each other... But it’s still better to sell such locations rather than rely on them being rented out until the financing runs out. Once sold, you have the money safely in hand and don’t need to worry about whether and when schools close or waste incineration plants are built in the area.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
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