Project multifamily house: Questions about costs and procedure

2016-06-09 10:27:10

1500m2 x 570€ = 855,000€

I think I would sell and then get myself a villa.

2016-06-09 11:20:56

Unfortunately, I am not inheriting the property alone. It is a community of heirs. However, I know that developers would pay about 650 euros per m2 for the property. It is an absolute VIP location where it is wonderful to live, and that’s why I am considering building something myself. That means splitting the property in half. 750m2 and then no single-family house. Too expensive, I can’t pay 450,000 for a plot + a house of maybe 400,000. That would be 850,000 thousand.

The idea was to build a multi-family house. An apartment for me and sell the others or possibly rent them out and thereby acquire my own apartment more cheaply, so to speak.

2016-06-09 11:25:33

1- you forget the high land values. A well-known construction contractor told me that good locations go absurdly high in the bidding process among developers. This is the highest block in metropolitan areas.

2- what the construction expert says is completely true. You and your architects who have to be paid will never achieve the conditions that a construction contractor has. I think I once read that you like to plan craftsmen securely and fill their books 40-50% with "competitive conditions" to be fully booked. The rest is filled with good orders (higher margin) which are gladly awarded to you and your architects.

3- You can forget finding craftsmen who install internet goods. YES, you can save on material, but the craftsman wants to sell it along.

In the end, even with a multi-family house, you don’t have much market power against the craftsman. He will also serve his regular customers first.

I understand that it is not easy. I just need to know what such a project really ends up costing me per m2 at cost price and then see if it’s worth it or if I can just pay a construction contractor for 4300 m2 for a condominium. I thought that as a private person you could build somewhat cheaper without profit. Of course, I don’t get the prices of a big construction contractor.

It would really be interesting what the m2 costs me compared to the provider and how I have to approach this to realize it. If it ends up being just as expensive, it’s not worth it.

2016-06-09 11:30:09

Hello,

Why? Most of them are purely shell builders; they purchase the remaining trades through long-term partners in the craft industry.

Do you work for Luft + Liebe?

Even if you found an architect, structural engineer + co who would work for you for free – which is what cost price actually means – all the materials you need for the house construction will be marked up. The tax office does not look kindly on companies that show no intention of making a profit.

We've had all this before. Search for the posts of the user

Rhenish greetings

How would you approach such a project?

Or do you generally think that the house price will definitely be higher than the construction company's and that in the end you will be stuck with the same price per m2?

2016-06-09 11:42:11

I thought that as a private individual you could also build somewhat cheaper without making a profit. Of course, I don’t get the prices of a large construction contractor.

As a private individual, you are so much at a loss, you need thick nerves and a lot of time. We are currently planning the whole thing a size smaller than a 3-family house (322 sqm living space) with an architect. Theoretically, with 2 rentals and living in 1 apartment ourselves, the monthly burden could be covered by the rent. But the comparison is flawed, as we also brought a decent amount of equity.

2016-06-09 11:45:54

Do you own half of the property (750m²)? If yes: Can you also make a deal with the contractor and save yourself the hassle: He gets the property (value: 750m² * 650€/m² = 487,500 €). He develops the property and sells you an apartment with 160m² (value: 160m² * 4,300€/m² = 688,000 €) for the difference of just under 200K€. However, you need to discuss the tax implications with a tax advisor. He is happy and you have a great apartment in a prime location worth 688K€ and only 200K€ in debt. That should also get you a good interest rate at the bank.

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Project multifamily house: Questions about costs and procedure

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