ᐅ Investment property in Northern Hesse with an 800 sqm plot – Which construction method?

Hello everyone!

I have purchased an 800 m² (8,600 sq ft) plot of land in a new development area near North Hesse. Currently, there is no official zoning plan, but I know that building two full stories including the roof/attic level is permitted. Unfortunately, my research both in this forum and through search engines hasn’t been very successful.

Right now, I’m thinking about building a multi-family house with five residential units and selling all of the apartments except the one I would live in as quickly as possible, so I can live there mortgage-free. Is this even possible? Has anyone had experience with this or been in a similar situation? I would be very grateful for any advice!

Kind regards,
felixks

Ah, a new development area where there is no building plan yet, but plots are already being sold.
What makes you so sure that you are allowed to build more than one dwelling unit?

Stick to what you know.

Exactly! And please consult your tax advisor to check whether your approach might classify you as a business operator with all the associated obligations. Acting as a property developer is not a hobby, and tax authorities are unlikely to accept passion projects as a business model without tax implications.

@Alex85 Yes, I don’t want to make it public here yet because it’s still unofficial! But I have already been in talks with the local authority, these things were decided in advance!

@HilfeHilfe What disadvantages would there be in starting a business? Sorry for the inexperienced questions! 🙂 You are basically my first points of contact!

Buildability of the plot? (New development areas are mostly designated only for single-family or two-family houses)
Financing structure?
Experience in the real estate sector?
Marketing?
Special requests management?
Cost calculation?
Personal asset and income situation?
Do you want to live under the same roof as tenants?
Property management?
Tax aspects? ==> with this number of units, you will effectively be considered a commercial property owner

and so on.

There are many questions regarding your inquiry.

@HilfeHilfe What disadvantages would there be in starting a business? Sorry for the inexperienced questions! 🙂 You are basically my first points of contact![/QUOTE]
The thing is, you would end up paying more taxes ;-)