Add an apartment and divide the land

  • Erstellt am 2021-08-30 13:59:04

Lukas_Sch

2021-08-30 13:59:04
  • #1
Hello,

I own a 1200m2 plot of land, built with a two-family house, freshly renovated. As can be seen from my very simple drawing, I would have space next to my house for an extension of about 9mx9m (I have assumed about 4 meters distance from the boundary).

My idea now is to build a single-story extension with a flat roof, with the option to add another floor with a roof later. I could probably build the extension completely without bank involvement and then rent it out.

Since property prices in the region have literally exploded in the last 4-5 years, I thought it might be possible to divide my plot as shown in green in the picture, so that a division of about 400m2 to 800m2 results. If I were to exercise my special termination right in 6 years, I could theoretically secure the follow-up loan only with the two-family house and the 800m2 plot, so that the extension including the 400m2 plot would be debt-free.

The remaining debt in 6 years is about €320,000. Currently, two neighbors have sold their single-family houses with 600m2 plots for €800,000, so I think the value of my two-family house could certainly cover the remaining debt.

My question now is whether something like this is even possible? My plot falls under §34 Building Code.

Best regards, Lukas
 

ypg

2021-08-30 14:53:33
  • #2

Accordingly, the development of a property must fit into the surrounding development, including in its built-up plot area.
How are the neighboring properties developed?
If we need to be more specific, you would have to show the street layout with the current development from Google,
 

Lukas_Sch

2021-08-30 15:07:21
  • #3
So right behind me there is already an extension with two full floors, next to me one with one floor extending forward. Opposite is a new development area, everything is relatively densely built there anyway. So I think the extension at my place shouldn’t be a problem?
 

RomeoZwo

2021-08-30 15:18:55
  • #4
I wonder: Why? So not the extension, but the whole deal with the division. Whether it's 80% financing on 2 apartments or 40% on 4, in the end it doesn't matter (tax-wise it can even be worse). Do you live on the property in the two-family house?
 

Lukas_Sch

2021-08-30 15:27:48
  • #5
I may have written it somewhat unclearly: I only want to mortgage my house along with the 800m2 after the division. The attached apartment along with the 400m2 of land should thus be without any mortgage. The reason why: I would simply like to already have a debt-free property, tax would not be so important to me in this case, or I would accept it :)

Yes, I live on the property with the two-family house.
 

RomeoZwo

2021-08-30 15:35:47
  • #6


I used to think the same until both my bank and my tax advisor showed me that financially it is worse for me. (At the bank, keyword loan-to-value ratio, for taxes, keyword depreciation of capital costs)

By the way, I don't think much of the phased extension. Just do it properly, that is, build the ground floor + first floor + attic all at once. That saves ancillary costs and possibly trouble with changing legal conditions (fire protection, escape routes, who knows what else ...)
 

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