Buy old house, keep the land, sell the house, build the house

Hello Florian,
if you still want to divide the 480m², what will remain of it? Since the existing building is centered on the edge, the left property will probably only get about 180-200m², as it also slopes off at the front. Even if you say you don’t want a garden, etc., that’s really damn small.

I would personally be inclined to stay away from it. We ourselves searched for the right property for 5 years, and then still only bought one plot, and are now building new on 750m².

I wouldn’t touch a 200m² plot.

Apart from the money you put into repairs, etc., you won’t get away with less than 350-400 thousand euros. With an assumed 280m² and the modernized house on it, I would now pay a maximum of 200-250 thousand (without having seen the property).

But I think that is also a matter of taste whether you can imagine yourself there on such a plot.

And I wouldn’t let myself be pressured like that. Approach it with the motto, "If it’s gone, it wasn’t meant to be," then you will also find the right one for you.

Best regards

Michael

I wouldn’t touch a 200m² plot.

Aside from the money you put into repairs etc., you won’t get away with less than 350-400 thousand euros. Assuming 280m² and the modernized house on it, I would now pay max. 200-250 thousand (without having seen the property).

The house from the 60s has a rough value according to NHK of about 60K€ plus the land.

If you estimate 80K€ for the property, there would remain 200K€ for the land at the current purchase price, ergo a land value price of €421 per square meter.

If you renovate the old house for 60K€ and estimate the remaining very small plot (approx. 120m²) at 75% of the land value price, you would achieve a sale proceeds of ~180K€. Taking renovation costs into account, this would leave a land value of (280K€ + 60K€ - 180K€) / 350 = 457€ for the remaining plot.

Broker and subdivision costs would still be added on top, so you would definitely be above 465€.

This will probably already exceed everything normally asked for in Kempten. Kempten is similar in size to my small hometown – for +465€ I can buy retail space here in the second-best downtown location (best location around 650€). The most expensive residential plots here have a land value of about 200€, even if €250 or even €300 were actually paid, you would still be miles away from +400€ or nearly 500€.

So Bayern bonus or not – it just does not add up, because after subdivision two (!) very small or poorly shaped plots remain and the existing house is not a high-priced, completely renovated gem. My purchase price would probably be well below the asked 280K€, depending on how the inspection of the 60s house turns out. It is quite possible that a renovation is worthwhile – but it could also already be a case for the wrecking ball from a calculation standpoint.

Best regards
Dirk Grafe