New construction 2DHH KFW 40 each 150m2 living area as an investment property

Hello everyone,
this is about the feasibility of a two-family house while adhering to an overall cost framework.
The goal is a rental yield property.
Effective rental income minus maintenance reserve and rental loss approx. 21,000 p.a.
Honest feedback is welcome and required.

[*
Who are you?
[LIST]
[*]Verena and Andre


[*]How old are you?


[*]28 and 31


[*]Are there children?


[*]no,


[*]Are children planned?


[*]but on the way T-5 months and T-3 years


[*]What do you do professionally?


[*]Engineer
[*]PhD, creation of digital media content as a replacement for presentation trainings


[*]Are you employed, self-employed, retired, housewife, househusband, etc.?


[*]employed
[*]self-employed


[*]How many hours do you work?


[*]40,
[*]60
[*]

Income and asset situation:

[*
What income do you have (net)?
[LIST]
[*]approx. 120,000


[*]How much equity do you have?


[*]approx. 200,000


[*]How much equity do you want to invest in the house project?


[*]approx. 30,000

Income and expense totals:

[*
Total income
[LIST]
[*]120,000


[*]Total expenses


[*]50,000

General information about the property:

[*
How large is the plot?
[LIST]
[*]852m2


[*]What are its dimensions?
[*]24x35.5
[*]What is the land value?


[*]110€


[*]New build, old building (year built), house type?


[*]New build 2 semi-detached houses, pitched roof 1.5 floors without basement


[*]Garages?


[*]Carport


[*]How large is the house? (living area / usable area)


[*]Living area approx. 2x155m2


[*]What market value do the plot and house have after completion?


[*]650,000€

Construction or purchase costs:

[*
Plot costs
[LIST]
[*]76,680


[*]Development costs


[*]included in plot costs


[*]Acquisition incidental costs (notary, court, real estate transfer tax, broker)


[*]5% of the plot costs 2,200€


[*]Total costs


[*]Construction costs 300m2 * 1200€
[*]Additional construction costs 25,000
[*]Driveway + garden 30,000


[*]Deductible equity


[*]30,000


[*]Financing amount
[*]355,000 (after offsetting KFW40 287,500 after buffer 323,500€]


[*]Buffer 15% on construction costs amounting to 36,000

The plan is to build a two-family house as 2 semi-detached houses with KS bricks,
1.5 full floors with a pitched roof and one dormer each.
Attic development in drywall construction.

Built with self-management and own work.
Building location is Lower Saxony.
Plot is already purchased.
Net rental yield approx. 5.2%.

Following question.
Is the work worth it for just about 5.2% gross yield?
The demand is there, I see the value retention as given.
But is all the work worthwhile again for 5% gross yield?

What do you think?

Total costs

[*]Construction costs 300m2 * 1200€
[*]Additional construction costs 25,000

Huh???
How on earth do you come up with these numbers?
Take both construction costs and additional construction costs times 2.

Otherwise, you have to know for yourself what alternative investment options are for you. There is no 5% gross on the savings account....

Have you ever built a house?
Is the cost plan valid?

Is the work worth it for just under 5.2% gross return?

No. A single-family house as an investment yields the worst possible return.

Total costs

[*]Construction costs 300m2 * 1200€
[*]Additional construction costs 25,000
[*]Driveway + garden 30,000

These are only material costs, right? You build the two houses entirely by yourselves. That's how I understand the price. Normal construction costs with external contracting are twice as high.

No. A single-family house as a capital investment gives the worst possible return. These are only material costs, right? You are building the two houses completely by yourselves. That's how I understand the price. Normal construction costs with external contractors are twice as high.

No, pure material costs are around €800 per m2 of living space, or €270/m3 of volume. Of course, there are labor costs for individual trades, but most of it is logically built completely by ourselves. Full contracting would be around €1650/m2.

Total costs

[*]Construction costs 300m2 * 1200€
[*]Additional construction costs 25,000
[*]Driveway+Garden 30,000

No, even Lower Saxony no longer offers such prices.

Full contract would be around 1650€/m2

We had 1650/m2 in 2013.
Today you can charge 2200/m2. If you are told otherwise, it is not realistic, incomplete, or whatever. Or it is wasteland squared.