Optimal living area semi-detached house Freiburg

What does the development plan say about the number of floors? How large is the building plot?

Two floors and a maximum of 2 residential units are allowed, the plot is 580 sqm.

Two floors and a maximum of 2 residential units are allowed, the plot is 580sqm in size

I didn't mean the plot size, but the building area. So where the house is allowed to stand on the plot. Gable roof? If yes, which angle?

Top. About the demographic information of the community? This is especially a spa town with many elderly couples but also young families and commuters to Freiburg (15 min by train)

And what are these target groups looking for? There are couples who prefer the apartment without a garden. Seniors tend to look for the 2-room apartment, young families then the classic 4-room house. You have to ask yourself which target group you want to address. Families can tend to neglect a house more than 2 persons. However, they can also be more appreciative and are more likely to use living space with a garden than couples. Accordingly, the room layout. However, I see it this way that couples can also use the classic semi-detached house well for themselves and have the same needs on the ground floor as a family of four.

Actually, since you want to build as a capital investment, an analysis from a return perspective in connection with the average tenant clientele should take place. You already have a terrible profitability for the property, without considering possible appreciation (whereas houses also tend to be worn out and you, unlike with condominiums, have to cover all major measures).

With an investment of T€ 500 for 130 sqm, you are grossly under three percent (before management and taxes).

I didn't mean the size of the plot but the building plot. So where the house is allowed to stand on the property. Gable roof?

The building window is 232 sqm, roof shape flat or gable roof 0-45 degrees possible.

Actually, since you want to build as a capital investment, a consideration from a return perspective in connection with the average tenant clientele should take place.

Gladly, I have already built there once and would build with a local general contractor. The turnkey fixed price is currently 500,000 for a total of 220 sqm including 2x garage and 2x parking spaces. At least in the first rental, I could certainly achieve 11/sqm plus 50 for garage and parking space. There is a special feature: I was able to convert my meadow into building land through a change of use and therefore, apart from the development, I have no costs on the clock for the plot. A sale of the plot would be possible tax-wise at the earliest in 10 years. This is currently how my calculation looks with two semi-detached houses and 220 sqm living space in total. PS These are not real semi-detached houses: a real division is not possible. In the end, two condominiums are created, but they could be sold separately one day. However, there is only one entrance. How do you assess the numbers? I would finance for 15 years at 1.67% interest

30,240 p.a rent - 1,662 maintenance (3/sqm because new building plus 40/apartment management) 28,620 rent after costs - 7,776 interest 20,843 operating result - 10,000 depreciation (2% building value = construction costs) 10,843 result before tax - 4,804 taxes 6,038 result after tax - 9,472 repayment - 3,433 result after depreciation, taxes, repayment + 10,000 depreciation (I add the depreciation back, it does not burden my liquidity)

= 6,567 free cash flow

If the rental income now collapses by 30%, I land at a positive cash flow of 1,500

If there is no increase in value for 10 years and I sell at today’s average residual value price of 3,250/sqm, I will be able to realize 715,000 tax-free - 367,000 remaining debt = 348,000 sales profit plus 70,000 cash flow from 10 years rent, which I can of course also put into repayment.

Of course, prices can also be significantly lower in 10 years. Statistically, however, they have never fallen in good locations in BW since the early 1970s.

The question is whether 110 sqm per half is not too small. The cheap price comes among other things from the fact that the architect is referring to a finished design taken from the drawer...

: That sounds like a plan. Unfortunately, many people don’t have one...

I would simply calculate it the other way around. What can small families afford as possible rent? With the 110 sqm (living space, possibly larger total area due to attic?), you come to €1,210 plus garage and additional costs. So almost €1,500 rent warm. I think that’s okay if the room layout is good. If the house gets bigger, the rent will also increase – by over €200 at 130 sqm. Not everyone can/wants to afford that, since you could also build yourself then.

So I would stick to the living space, possibly go up to 115 sqm. In rental, you can still add a bit by counting the terrace. You can count at least 50% as living space and also rent accordingly...