ᐅ Is Building and Renting a Semi-Detached House a Viable Investment?

But you have understood what we have written here, right?

Putting that aside: you shouldn’t invest much money into an investment you don’t understand. That’s just my opinion.

From a technical systems perspective, this is most likely not a good idea. Houses involve high costs, so the rent must be correspondingly high. If you happen to have even one bad tenant, your return on investment could be lost for years; this is also known as concentration risk. It’s better to choose something nice for yourself and invest the rest in ETFs, classic cars, or whatever you like and have expertise in.

How does everyone else do it? They live in it for three or four years and then rent it out, building another one afterward.

Have you saved enough money to buy two semi-detached houses for around 500,000 to 600,000 euros? For example, if you needed a loan of 300,000 euros, you would probably pay about 500 euros in interest per month (at least at the beginning). If you could rent out the house for 1,000 euros now, you would have 500 euros left to pay down the loan. So it will take quite a while to repay your loan. As I said, you would need to be a bit more specific about your plans.

Best regards
Sabine

The topic of renting out semi-detached houses was recently discussed here: https://www.hausbau-forum.de/threads/mit-zwei-Parteien-dh-bauen-und-vermieten-als-invest.27417/

Your specific dream

Makav55 schrieb:
Hello everyone..
I have been considering for a long time building a semi-detached house on our plot and renting out one side.. my plan was actually to live in one side for a few years and rent it out, then build another one and do the same again.

however, this strongly raises the question of what might have been behind this idea: if I understand correctly, you want to earn so much from renting out one side of a semi-detached house that the construction of the next semi-detached house will pay for itself within a few years. Furthermore, you seem to think this brilliant concept already works regularly, and that "everyone else" is doing the same:

Makav55 schrieb:
How do all the others do it? They live in it for 1 or 4 years and then rent it out, then build another one..

Your friends must all belong to the jet set if this really applies in your circle. I’m not familiar with Kashoggis and Vanderbilts, but as far as I know, this does not work that way for ordinary families.

I’m afraid you’ve been told a tall tale about the multiplication of semi-detached houses by cell division.

---

https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/

Makav55 schrieb:
How do all the others do it? They live in it for 3 or 4 years and then rent it out, then build another one..

Who exactly are "all the others"? I know plenty of people in the salary bracket of 100,000 euros (around 110,000 USD) and above who cannot do this. At best, they build, live in the house, sell it, and then build a new one.

From my experience, a single-family home hardly generates any ongoing return. Only increases in value are possible, but not guaranteed, since the house also ages.