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:
The demand for housing in DD is apparently quite high regardless. That’s exactly where the problem lies. The typical investor mindset is to look at size categories and assess the supply-demand ratio for, say, 45 / 60 / 75 / 90 sqm (484 / 646 / 807 / 968 sq ft) apartments locally; then they try to divide the floor space accordingly. Or they target specific sales price ranges that fit within the “budget” of potential buyers. What both approaches have in common is that they don’t have to align with what is best for the property owner. The typical investor just wants to “quickly sell out” the finished unit. They don’t care who moves in. But for you—because, for example, you want to keep the ground floor retail space—it does matter who lives above.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
Well, if we actually complete this 75-unit residential project, it will be a fairly separate complex. We won’t be making changes there. It will be used solely for housing. The plot will basically be divided, and on the remaining part, we will still keep some commercial use.
Therefore, it could be optimized according to demand. It should be clear that we are not aiming for social housing. Students are no longer being considered either – they probably wouldn’t want to live there anyway. But before we start worrying about that… we are still a long way from that point.
Therefore, it could be optimized according to demand. It should be clear that we are not aiming for social housing. Students are no longer being considered either – they probably wouldn’t want to live there anyway. But before we start worrying about that… we are still a long way from that point.
Question:
For a potential change of use to a residential building, the existing structure must meet the highest fire protection standards. This requires, among other things, a fire wall as an exterior wall.
I have read that such a wall only needs to be made of non-combustible materials. These are materials of building material class A, such as bricks.
The exterior walls of the building consist of 65cm (25.6 inches) thick brick walls. Can I therefore assume that all the exterior walls comply with the fire wall standard?
For a potential change of use to a residential building, the existing structure must meet the highest fire protection standards. This requires, among other things, a fire wall as an exterior wall.
I have read that such a wall only needs to be made of non-combustible materials. These are materials of building material class A, such as bricks.
The exterior walls of the building consist of 65cm (25.6 inches) thick brick walls. Can I therefore assume that all the exterior walls comply with the fire wall standard?
kaho674 schrieb:
The exterior walls of the building are made of 65cm (25.6 inches) thick brick walls. Can I therefore assume that all exterior walls meet the standard for firewalls? Basically, yes. In terms of wall thickness, this requirement is certainly more than met here. However, even with walls several kilometers thick, you can’t just casually make a large hole to run a pipe through. A fire is basically like a blower door test, but with flames.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
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