á 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 areaâsurrounded 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 familyâs 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 houseâideally 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 familyâs 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 houseâideally 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?
A somewhat different question related to this:
The consultant said that ground-level apartments are difficult or even impossible to rent out. I donât quite understand that. I personally lived in a terraced house that was completely on one level and really liked it because you could step out directly onto the terrace.
Does anyone have experience with ground-level apartments? Are they somehow problematic? If so, why? Would it be better to raise the floor?
Could it be possible to build barrier-free here and reserve the ground level for people with disabilities? Or is that also not desired in this area?
The consultant said that ground-level apartments are difficult or even impossible to rent out. I donât quite understand that. I personally lived in a terraced house that was completely on one level and really liked it because you could step out directly onto the terrace.
Does anyone have experience with ground-level apartments? Are they somehow problematic? If so, why? Would it be better to raise the floor?
Could it be possible to build barrier-free here and reserve the ground level for people with disabilities? Or is that also not desired in this area?
N
nordanney9 Oct 2018 10:15kaho674 schrieb:
The consultant said that ground-floor apartments are difficult or even impossible to rent out. I donât quite understand that. I donât understand that either. Depending on the location, rent can vary, which is probably true.
But are all your ground-floor apartments vacant?
Maybe commercial use could also be an option for the ground floor. Bakery, retail, etc.
Perhaps the consultant should be replaced. That doesnât sound very professional.
In southern Germany, ground floor (EG) and attic (DG) apartments are the most popular. Attic apartments are in demand everywhere, and ground floor apartments are preferred in quiet locations with a courtyard garden.
In Dresden (DD), apartments and houses near the GroĂer Garten with green spaces are also quite popular.
In Dresden (DD), apartments and houses near the GroĂer Garten with green spaces are also quite popular.
A forum member just mentioned that the nearly 4-meter (13 feet) ceiling height could be used as a sleeping loft. I find that interesting. On the ground floor, after a renovation, we expect a clear ceiling height of about 3.80 meters (12.5 feet). Should this height be put to use somehow? If yes, how? If I plan for a standard ceiling height of 2.40 meters (7 feet 10 inches), that would leave about 1.40 meters (4 feet 7 inches) of space above. You canât really stand or do much thereâat most, it could serve as storage. Or are there ideas for how to use a space like this in an apartment in a practical way?
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