Building and renting DH with two parties as an investment

In our municipality, the whole situation would not be possible at all, as the buyer has a construction obligation of 5 years and must then use the property themselves. Is it even allowed to build rental apartments here?

Thank you for your answers. I think the biggest obstacle was perhaps mentioned by Yvonne. A friendship and neighborhood really are not a particularly good basis for a business.

Regarding the equipment, I have a question mark as to whether single-family house rental applicants find an apartment standard attractive. And for couples in their mid/late thirties, I would perhaps already consider these houses for own use when the children have moved out - or even then for the children.

However, it is supposed to be about maximizing the return. The current housing market in the town does not allow any special wishes regarding the equipment ;) At least Party A is already looking forward to having their own 200 m² to themselves when the children have moved out...

Has anyone already prepared an investment calculation? Do you have any practical personal connection to the topic (are you a construction contractor, craftsman, tax advisor, or property manager)?

Yes, various calculations. Depending on how the parameters are set, we come to, for example, an equity return of about 9% / gross rental yield of about 6% / net rental yield of about 5%.

In our municipality, the whole thing would not be possible at all, since the buyer has a construction obligation of 5 years and must then use the property themselves. Is it even allowed to build rental apartments here?

There is indeed the obligation for own use, but experience has shown that the contracts are quite flexible when the right arguments are presented...

My experience as a real estate financier: A single-family house as an investment property does not generate any significant return. Value increases, which an investor may optimistically calculate, are offset by the depreciation of the property (except for boom regions and very good locations in recent years, but given your land price, I do not assume that you live there). I invest exclusively in used apartments with high cash flow; value developments do not matter to me, as they are not predictable.

There are other investments where you can burn money without ending the friendship^^ Otherwise, GBR is not always great

I have done something like this before. I had built a semi-detached house together with a friend and after a few years there was stress. Fortunately, it was possible to divide the property so that it became 2 independent units. I would consider this a basic condition. If you can divide the property then do it, if not leave it.

I mean in a GbR, two married couples would be four parties, right?

In principle, that is correct, even if they are called "partners" there. One of my friends (real estate expert) has a kind of favorite saying: the ideal number of partners is odd and less than three ;-)

The current housing market in the town does not allow for special requests in terms of equipment

But precisely that means, conversely: the local market is not yet saturated with premium properties – and probably not even with those classified as two-star Superior. With a run-of-the-mill property, you attract run-of-the-mill tenants. At least underfloor heating and a double carport are a must.

A single-family house as an investment property does not generate any significant return.

The lot size “1” for rental properties (counted per married couple) is far from the foundation of a real estate empire.