ᐅ Residential construction on an existing building – parents’ property
Created on: 6 Jan 2020 14:43
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Advanced88
Dear Forum,
My plan for this year is to gather preliminary information to carry out the following project. I would like to build two apartments on an existing building (approximately 300m³ (10,600 ft³) of floor space) on my parents’ property. These apartments are intended to be rented out upon completion, with the rental income contributing to or largely covering the repayment of the loan.
The location is between Düsseldorf and Cologne in an attractive residential area with stable or increasing demand. I am 31 years old and have a permanent employment contract, but I do not have significant savings that could be used. If there are considerable advantages, a joint family project might make sense.
The property belongs to my parents, and the building offers the possibility that the land and foundation are already serviced. I assume this significantly reduces costs compared to building a new house. Regarding the loan, it is likely beneficial to already have the land as collateral. However, the question arises of how best to proceed with using land owned by my parents. What options or concepts exist in this regard?
I still have significant gaps in knowledge related to residential construction, financing plans, inheritance planning, and similar topics. I have planned this year for solid preparation, including consultations, planning, and networking.
Perhaps someone can already offer an assessment or keywords that could be helpful for my research. As I have not yet conducted extensive research, I do not expect lengthy responses, but I would greatly appreciate a friendly, critical, or inquisitive reply.
Thank you very much,
Fabian
My plan for this year is to gather preliminary information to carry out the following project. I would like to build two apartments on an existing building (approximately 300m³ (10,600 ft³) of floor space) on my parents’ property. These apartments are intended to be rented out upon completion, with the rental income contributing to or largely covering the repayment of the loan.
The location is between Düsseldorf and Cologne in an attractive residential area with stable or increasing demand. I am 31 years old and have a permanent employment contract, but I do not have significant savings that could be used. If there are considerable advantages, a joint family project might make sense.
The property belongs to my parents, and the building offers the possibility that the land and foundation are already serviced. I assume this significantly reduces costs compared to building a new house. Regarding the loan, it is likely beneficial to already have the land as collateral. However, the question arises of how best to proceed with using land owned by my parents. What options or concepts exist in this regard?
I still have significant gaps in knowledge related to residential construction, financing plans, inheritance planning, and similar topics. I have planned this year for solid preparation, including consultations, planning, and networking.
Perhaps someone can already offer an assessment or keywords that could be helpful for my research. As I have not yet conducted extensive research, I do not expect lengthy responses, but I would greatly appreciate a friendly, critical, or inquisitive reply.
Thank you very much,
Fabian
Advanced88 schrieb:
Can you recommend specific sources, books, etc., on the topics of "adding additional floors," "house construction basics," and "house construction financing basics"? My information about the property is limited to...
Advanced88 schrieb:
The building currently operates as a catering business. There is enough space around it for a potential stairwell, parking spaces, and so on. The roof structure was designed to support the addition of two more floors.
On the neighboring property, a total of 27 residential units, including townhouses and basement apartments, have been built. ...so on one hand, I am not familiar with the property in detail, but on the other hand, there are only "indications" that it may be rather unusual or atypical. These are very unfavorable conditions for making any general recommendations, even if they are only literature suggestions.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
W
WilderSueden31 Dec 2020 18:19Advanced88 schrieb:
Can you recommend any resources, books, etc., specifically on the topics of "building an extension upwards / adding a storey," "house construction basics," and "home building finance basics"?There is an entire series of books for home builders published by Stiftung Warentest covering financing, understanding building specifications, inspections, and more. Definitely worth reading. Consumer advice centers offer similar materials. However, the topic of adding an additional storey might be quite specialized—at least, I haven’t seen anything on that subject in the books I have.HilfeHilfe schrieb:
I’m not a fan of building the first property for others who will just live in it. Me neither. That feels like a risky financial gamble with unhealthy dependencies!
Advanced88 schrieb:
The building is currently used as a catering business. So far, everything seemed fine—apparently structurally sound and eligible for permits/planning permission...
But now you say it’s not a residential area at all.
Even if there are multiple terraced houses built on the other side of the street, it’s possible that the local zoning plan does not apply to your property.
Advanced88 schrieb:
Can you recommend any sources, books, etc. specifically on the topic of “adding an extra floor,” “house building basics,” or “house building financing basics”? No. Reading material isn’t necessary at this point. An architect needs to review the property, check all regulations, and possibly submit applications.
In addition, I would consult a tax advisor or a notary to clarify the family ownership arrangements.
Regarding the other thread: what floor area ratio (FAR) are you aiming for if suddenly two additional floors, each with 280m² (3,014 sq ft) containing 4 apartments, are to be built?
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Advanced8831 Jan 2021 11:55The land has been reclassified as building land, and according to the development plan, the building may have 2 full floors plus a half floor (roof) added. In addition, an extension of 3 m (10 feet) in width can be built in one direction and 1 m (3 feet) in width in the other direction.
Advanced88 schrieb:
The land has been reclassified as building land, and according to the development plan, the building may have 2 full floors plus a half floor (roof) added, as well as an additional 3 meters (10 feet) in width in one direction and 1 meter (3 feet) in width in the other direction. Where exactly is the plot located? Is it in an industrial zone? Mixed-use area?
Advanced88 schrieb:
The building is currently used as a catering business. A
Advanced8831 Jan 2021 16:21The plot is located between Düsseldorf and Cologne. The catering building was constructed when the area was still designated as mixed commercial use but has since been reclassified. As mentioned, we spoke with the city, and 2½ full floors can be built on the property for residential use.
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