Develop building land. Profitability test for beginners?

  • Erstellt am 2019-04-06 03:10:42

Mottenhausen

2019-04-08 10:07:15
  • #1
I would skip the expert, it only costs money for nothing. (Nothing = a sheet of paper with a number on it)

A potential development contractor will tell you what he will pay for it. Namely exactly enough so that the purchase price for you and all the development costs are covered by the sale of the plots, and in addition a small profit remains for him.

Now one can argue back and forth: do you reclaim the development costs from the later buyers in addition to the price per square meter? That won’t work because then the total price per square meter would become too expensive to remain attractive. So everything must already be included in the 30€/sqm.

The total area of 5600 sqm will be reduced by traffic areas (possibly private roads that the buyers must purchase as well). Possibly compensation areas for replacement plantings or biotopes for newts, etc. must be created, which also reduces the sellable area. I believe it will end up a zero-sum game: proceeds = costs. But to go through all that stress? Just keep it. Possibly one of the neighbors is interested in buying it to use it as garden land or something similar.
 

Nordlys

2019-04-08 10:28:44
  • #2
That was not the question, but basically I see it like Mottenhausen: Agricultural land in SH is 4-6/sqm. With wind power on it over 8/sqm. If developed building land now only yields 30, it is not worthwhile. And: what do you want to do with the money! It does not generate interest. Land is the better investment. At some point, something will happen in Saxony too. K.
 

HilfeHilfe

2019-04-08 10:38:57
  • #3

I disagree. It won’t move around 60, 70, 80€ per sqm. Ever driven through the state of Saxony? The villages are simply older than old. A lot would have to happen for prices to rise. Regarding development costs: someone once posted here that from a certain size you would have to pay 15/20€ per sqm. 30€ sale - 8€ arable land - 20€ development. Very small margin since you still have to market it.
 

Mottenhausen

2019-04-08 10:51:38
  • #4
I understand that you don’t want to disclose all information in an internet forum, but:



is actually a bit cheeky. At least you could honestly state the federal state. The city is not in Saxony, but in Saxony-Anhalt.

Standard land value in the immediate vicinity: €25, in the "center" €35, a bit outside €15. The location is actually very good due to highway proximity; you can reach Leipzig including the international airport in 30-40 minutes or the next bigger city in 15 minutes. So I can actually imagine that there is demand there and that prices might even rise slightly in the future.
 

wobbbel

2019-04-08 14:45:35
  • #5


how did you find that out?!



why are you deducting the 8€ farmland? The land already belongs to me - or are you calculating from the perspective of a developer who buys the land from me? Otherwise, there would be about 10€ profit!
 

wobbbel

2019-04-08 14:49:57
  • #6
I also own the adjacent area where the biotopes could then be established. However, a road will certainly be needed.
 

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