Build and rent a 3-family house?

Stay grounded.

I am. That’s the problem.

You stated above that the plot and liquid equity will be fully invested in the property to reach the usual 20% equity share. So please don’t count the 50k multiple times.

You have to be quite picky to come to that conclusion at this point in time. If you had followed my rough calculation and the intention of my statement, you would know that the equity share is above 20%. Furthermore, the plot value is unknown, as is the rent index. These are significantly more important factors than the property tax assessment rate.

Property tax is already due now, yes, but you will agree that it will be considerably higher after development, right? An extra zero at the end probably isn’t entirely wrong.

Highly unrealistic, building location and assessment rate are also unknown. Moreover, it is nearly irrelevant from a business perspective – property tax B is recoverable, i.e., tenants pay for it.

Put that into relation to income.

Costs borne by tenants do not reasonably need to be related to the investor’s income. You can of course do that – but the informational gain for the investment decision tends toward zero.

I point out supposed trifles because they are no longer so small when it comes to 300 sqm of living space.

If a project of this size (or any ordinary single-family house) fails because of the assessment rates for property tax B, then something has already gone seriously wrong beforehand.

The amounts are higher than what one is used to as a private individual.

Doesn’t matter, since it is recoverable and thus included in the stated ancillary rental costs.

One has to develop a feeling for this and become aware of the risks. With a financial leeway of 2.5k per month, nothing must go wrong. How realistic is that?

The same old logical error doesn’t become any more correct just because it is repeated multiple times.

By the way, I love to let projects die, especially for larger volumes, if obvious fundamentals are missing.

What matters is that the foundation here – always assuming the OP’s data are at least somewhat realistic – cannot by any means be called so fundamentally flawed that the property could fail due to the payment of property tax.

If not even remotely the basic idea of a liquidity plan is considered, then that is given.

Where exactly should the influence of property tax B appear in the liquidity plan? At number 107?

The mere fact that you “demand” such a thing proves that you have no idea how such projects are developed: if refinancing through the sale of condominium units is planned, construction only starts once at least one unit has been sold in the projected state. The same applies synonymously for upscale rental apartments, meaning: you only start building when you already have potential buyers/tenants.

Best regards
Dirk Grafe