nevermore
2020-05-15 22:09:21
- #1
Hello everyone,
thanks first of all @ . I have recalculated conservatively (can no longer edit the comment above):
- We have a buildable area of about 210m² and are allowed to build 2.5 stories. No floor area ratio. According to the architects, this results in about 144m² rentable living space each on the ground floor and 1st floor, and another 110m² on the 2nd floor, about 24m² creditable area = 412m². In the basement, a total of another 65-75m² could be realized = 482m².
So according to the table we are at about 3,000-3,100€/m² (approx. 1.2-1.3 million €) without basement and 3,300-3,400€/m² (approx. 1.6-1.7 million €) with basement & basement area for construction incidental costs + planning.
Net rental income p.a. (incl. 3% calculative rental default) / land value (approx. 900k) + total construction costs
GC: = 78,000 / (900k + 1,700k) = 3.0%
Equity: = 78,000 / 900k = 8.6%
Question: From when does such a project "pay off"? What GC/equity return should we expect here?
What condition are you assuming here? We have assumed 720k via KfW (at 0.75%) including 1.4% (15-year fixed interest rate) for the residual debt. Is this realistic?
@ : I don’t quite understand the point about the land company/GbR. Could you explain that again for a layman?
I’m glad that we can start a discussion here and will gladly keep you updated on the further procedure.
thanks first of all @ . I have recalculated conservatively (can no longer edit the comment above):
- We have a buildable area of about 210m² and are allowed to build 2.5 stories. No floor area ratio. According to the architects, this results in about 144m² rentable living space each on the ground floor and 1st floor, and another 110m² on the 2nd floor, about 24m² creditable area = 412m². In the basement, a total of another 65-75m² could be realized = 482m².
Including construction incidental costs, architect, etc.?
So according to the table we are at about 3,000-3,100€/m² (approx. 1.2-1.3 million €) without basement and 3,300-3,400€/m² (approx. 1.6-1.7 million €) with basement & basement area for construction incidental costs + planning.
How calculated? (8% equity return is too low for such a project)
Net rental income p.a. (incl. 3% calculative rental default) / land value (approx. 900k) + total construction costs
GC: = 78,000 / (900k + 1,700k) = 3.0%
Equity: = 78,000 / 900k = 8.6%
Question: From when does such a project "pay off"? What GC/equity return should we expect here?
Please remember that there will be a proper condition for the external financing. The loan-to-value will only be around €1.4 million (in the variant with basement).
What condition are you assuming here? We have assumed 720k via KfW (at 0.75%) including 1.4% (15-year fixed interest rate) for the residual debt. Is this realistic?
@ : I don’t quite understand the point about the land company/GbR. Could you explain that again for a layman?
I’m glad that we can start a discussion here and will gladly keep you updated on the further procedure.