Is financing a multi-family house feasible?

Hello dear all,

new to this forum, here comes the usual question right away: Is our plan even financially feasible?

The facts:

- We want to build with a close family friend (all legal matters settled as with strangers, we don’t want to ruin the relationship!)
- 810 sqm plot for a multi-family house in sight, large building window (14x14m, 2 stories, open construction, fully developed), expected costs 140,000 € (excluding ancillary costs!) per party.

Planned is:

- one apartment each of approx. 130 sqm + 30 sqm usable space on the ground floor and 1st floor. (No basement due to ground conditions)
- one additional rentable apartment of 50 sqm per party on the 2nd floor (shed roof + terrace), conservative estimate of achievable cold rent 400 € (city in the Rhineland).

Financial conditions
(Each party handles its financing, here is ours)
- Equity 100,000 €
- 50,000 € via building savings contract (old contract, allocation-ready, which BHW wants to get rid of and therefore offered us 50,000 € at 0.8% in 10 years about a year ago - there is probably still room for negotiation now)

- Income for the next 4 years: 3800 € net (he) + 180 € child benefit (public service)
- Income from about year 5: he 3400 €, she at least 2000 € (doctor) + 180-360 € ;) child benefit
- Our household currently consumes including everything (insurance, car, holidays, leisure expenses, ...) 2500 €/month plus 950 € cold rent

According to initial offers from general contractor, prefab house manufacturer, or architect, including modest exterior facilities and carport including ancillary costs related to the house (surveying, statics, double checks because of multi-family house, ...), costs per party are 300,000-400,000 €.

--> Planned initially rate 1300 € + 350 € = 1750 € rent income, naturally more after 5 years. Various calculators indicate this is possible. But what do you think as builders? Realistic financial assumptions?

Greetings to the still unknown group,

Lückenfüller

a small question ..what if you have signed and she backs out 4 weeks later!? ..

Who will drop out? The friendly family? Or the woman?

My question:
Why are you forming a home ownership community and not a real separation with two individual houses?
If someone sells their place, you suddenly no longer have the friends in the [WEG].

As a layperson, I think the financing sounds doable.

Good evening,

- one apartment each of approx. 130sqm + 30sqm usable space on the ground floor and 1st floor. (No basement due to ground condition)
- an additional rentable apartment of 50sqm per party on the 2nd floor (shed roof + terrace), conservative estimate of achievable cold rent 400€ (city in the Rhineland).

According to the first offers from the general contractor, prefabricated house manufacturer, or architect, including modest outdoor facilities and carport as well as incidental costs related to the house (surveying, structural analysis, double checking because it is a multi-family house, ...) the costs per party amount to 300,000-400,000€.

2 questions:

Why are you making life difficult for yourselves with a multi-family house instead of building a semi-detached house? 7.00 x 14.00 m is quite a statement...?

I don't exactly consider the range of EUR 300,000 to EUR 400,000 as planning security. What accounts for the extreme price difference?

Rhenish regards

Thank you for the first "assessment as a layperson", DNL.:)

We had already lived together years ago, and we had been looking for a joint property for a long time. Without building the others, it probably wouldn't even be an option for us right now.

We also looked as a last resort at two separate plots side by side, but this would be associated with at least twice the land costs. I do not see an owners' association even with "strangers" as a problem in the city.

Good evening,


2 questions:

Why are you making life difficult for yourselves with an apartment building instead of building a semi-detached house? 7.00 x 14.00 m is quite an offer ...?

I do not exactly see TEUR 300 to TEUR 400 as planning security. What is the reason for the extreme price difference?

Best regards from the Rhineland

Regarding question 1: We have to build on a edge location on one side, so that with a semi-detached house construction, one party would get a rather darker "tube". In addition, both parties find living "on one level" attractive.

Regarding question 2: The offers (e.g. Weberhaus vs. Gussek Haus vs. local general contractor) still differ considerably in content (fireplace, a roof terrace after all, carport included or not, ...) but also in quality. We are currently starting to go through the scope of services specifications. Of course, we will not commit ourselves before signing.