Building application Lower Saxony Building law

Out of curiosity: You have "real" costs of 1800€/m2 for construction, but you calculate with 2400€/m2 including EL. That means, over all residential units, 600€/m2*540m2 = 334,800€ (minus pre-financing costs)? That’s quite a lot of overtime in the office...

I also don’t see that you could build wealth better elsewhere with the 100€ negative cash flow. So, seriously: Everything’s all good, right?

The plots are not included in the 1800.
In fact, I have also calculated a 10% buffer for further unforeseeable items.

The plots are not included in the 1800.
Actually, I have calculated a 10% buffer for further unforeseen events.

Ok, understood.

Since I don't know the region: What are the developer prices for comparable turnkey construction in your area? ~400k per semi-detached house would definitely be dream prices (for buyers) elsewhere, and you would also make quite a profit if you just plan, build, and sell instead of renting out. Although it doesn't quite correspond to the nice motivation of providing a good living situation to young families who are (still) not ready to buy, it does show, in my opinion, that the location might not be so dramatic that it immediately requires a monument (instead of housing)!

Good luck continuing with the project and discussions!

I think selling is not profitable because you have to pay taxes immediately at your personal tax rate. With renting, you can deduct interest and depreciation [AfA] and thus reduce taxes. After 10 years, the profit is tax-free.

I think selling is not profitable because you have to pay tax immediately at your personal tax rate. With renting, you can deduct interest and depreciation and thus reduce taxes. After 10 years, the profit is tax-free.

Yes, of course. It was less about saying that this would be the more sensible option, and more about questioning that the land is not economically viable to build on.

Ok, I understand.

Since I don't know the region: What are the developer prices for comparable turnkey construction with you? ~400k per semi-detached house would be a dream price for buyers elsewhere, and for you, quite a bit would stick, if you just design, build, and sell instead of renting. Although it does not correspond to the nice motivation to provide (still) not yet able-to-buy young families with a good living situation, it shows in my opinion that the location might not be so dramatic that it directly needs a memorial (instead of living space)!

Good luck further with the project and conversations!

That is a good question. I think I can roughly approximate it.
Semi-detached house,
solid construction with two-layer sand-lime brick and clinker, concrete ceiling KFW55 standard
finished ceiling height 2.80 m
decent windows with shutters
air-to-water heat pump + ventilation system

I estimate 320-350k
+ ancillary construction costs (interest, connections, static calculations, etc. etc.) certainly 35k
+ plot (developed) 25k
+ fitted kitchen, driveway, carport, terrace + roofing, garden shed, fence + setting curbs, roll-out lawn
- if done by others, about 50-65k? That adds up

Finished around 450k turnkey house + garden etc. +/- 10%
That would mean, with 20 years fixed at 2.5% interest, 2.5% repayment, 50k equity, a payment of 1650 per month.

Whether someone then pays 1300 rent there is, in my opinion, daring.
Whether the 20-year-old, used 150m2 houses here, which are currently sold for 450-500k, are really worth that price, I do not know either.
There, in addition to the purchase price, come the high energy costs, property tax, etc.!
With renovation measures like a new bathroom, new kitchen + incidentals, you quickly end up at 600k.

I come to at least €1650/m2 of finished living space (with contacts, lots of EL etc.) including additional construction costs, Häcker kitchen, fence, garden, driveway, etc.

If 2 or 3 items get out of control (no material, delay, further price increase), I am fixed at €1800/m2 - unfortunately, this scenario is likely) For that, I need €13/m2 at the currently due interest rates - 18 months ago it was €8.70/m2.

That was the starting position and there was no more information. That is why it is always so bad to just throw numbers around like that. Your now much more precise numbers in talk again about €8.70 per sqm and not €13.00. And that is exactly why I reacted at all, because numbers are quickly thrown back and forth. But thanks ;).