ᐅ Sell the entire property or opt for a partial sale with reinvestment?
Created on: 10 Jun 2018 13:41
K
kaho674
There is a large property in the family located in the center of Dresden. It is a residential area—surrounded by 6-story or even taller new apartment buildings. The land is currently occupied by a very old factory building. The owners do not have the funds to demolish this building and replace it with modern new construction. On the other hand, the ongoing costs and rental income are just about breaking even. If income continues to decline, the property could financially ruin the family.
So the question is what should happen with this "factory land." It is quite certain that it could be completely redeveloped since there are multi-family buildings all around. Adjacent to this land is the family’s own business property (including land), which is not intended to be sold as it is their livelihood.
The immediate idea was, of course, to sell the entire factory land. Its value is estimated at around 1-2 million (minus demolition costs), without going into details here. The money could be taken, divided among the family, and essentially spent without long-term benefit.
However, there are also grandchildren who are struggling to establish themselves in Dresden. The family would like to support them over the long term and believes that a rental property would be ideal. Coincidentally, the grandchildren are trained in property management and could help oversee the project.
So the idea came up to sell only part of the land to gain liquidity, demolish the old building, and construct a multi-family house—ideally in collaboration with an investor who would buy and develop the other half. Of course, everything would need to be carefully calculated to see if this is feasible and if the land will generate enough value.
Is something like this possible, or is it just a scam? What would you do?
So the question is what should happen with this "factory land." It is quite certain that it could be completely redeveloped since there are multi-family buildings all around. Adjacent to this land is the family’s own business property (including land), which is not intended to be sold as it is their livelihood.
The immediate idea was, of course, to sell the entire factory land. Its value is estimated at around 1-2 million (minus demolition costs), without going into details here. The money could be taken, divided among the family, and essentially spent without long-term benefit.
However, there are also grandchildren who are struggling to establish themselves in Dresden. The family would like to support them over the long term and believes that a rental property would be ideal. Coincidentally, the grandchildren are trained in property management and could help oversee the project.
So the idea came up to sell only part of the land to gain liquidity, demolish the old building, and construct a multi-family house—ideally in collaboration with an investor who would buy and develop the other half. Of course, everything would need to be carefully calculated to see if this is feasible and if the land will generate enough value.
Is something like this possible, or is it just a scam? What would you do?
kaho674 schrieb:
What regulations apply to a multi-family building compared to a single-family house? I believe that from three residential units onward, the building is classified in a higher building category, and up to three apartments can still be self-managed. For apartment entrances above the fourth floor, an elevator is then required or something similar. These regulations cover various requirements, which, as far as I know, are mostly standardized nationwide (now also unified across residential and non-residential buildings), or at least consistent at the state or regional level.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
kaho674 schrieb:
which regulations must be complied with for a multi-family house- higher sound insulation (ceilings, walls) - higher fire protection (staircase width)
But this is not my area... muenchen.de has a good page... then the reference to the Bavarian Building Code... well, it’s not SN. DD, C, or L have useful online resources. There should also be a Saxon Building Code... have fun reading.
Google is your friend...
§ 27
Load-bearing walls, columns
(1) Load-bearing and bracing walls and columns must remain sufficiently stable in the event of fire. They must be
1. fire-resistant in buildings of building class 5,
2. highly fire-retardant in buildings of building class 4, and
3. fire-retardant in buildings of building classes 2 and 3.
Sentence 2 applies
1. for floors in the attic space only if additional rooms are possible above; § 29 paragraph 4 remains unaffected;
2. not for balconies, except for open corridors used as essential hallways.
(2) In the basement level, load-bearing and bracing walls and columns must be
1. fire-resistant in buildings of building classes 3 to 5, and
2. fire-retardant in buildings of building classes 1 and 2.
N
nordanney5 Oct 2018 14:37kaho674 schrieb:
Do multi-family houses have to have a basement? No, right? No, but if you are planning something larger and also considering rental options or parking requirements (proof of parking spaces), then you would at least build with an underground garage plus some storage rooms/laundry room or similar.
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