Purchase contract / Division of property / How to determine the land

can you say more about that, because you said the amount should simply be split two-thirds? Do you have experience with that, doesn’t that cause any problems later with the tax office or anyone else?

can you say more about this, because you said that the amount should simply be divided into 2/3? Do you have experience with that, does it not cause any problems later with the tax office or anyone else?

I, as a real estate banker, would do it like this: divide the purchase price of the property according to the square meters, so you have the share that relates to personal use and to renting out. I have made such a division for condominiums that were used differently (family + rental). Also for the topic "home office" (my main workplace is at home), the division was recognized this way. For the bank, by the way, it doesn't matter at all how the loan is divided, since the entire property is always liable. What other division would make sense? The above only applies to financing! When depreciating, you must deduct the land value.

: Linking the property to the book value 100% to the legal entity and valuing the apartments practically "in the air" is, in my opinion, not correct. However, before having a big argument with the tax advisor and the tax office about this, I would value the apartments not according to the book value method but according to the income approach, i.e., based on the achievable average rental income. This then results in a theoretical market value in which the location and thus ultimately the standard land value are proportionally capitalized to the apartment(s) and are therefore included.

An equally sized apartment in a worse location would generate less rental income, thus accounting for the lower land value there.

For the bank, by the way, it does not matter at all how the loan is divided, since the entire property is always liable.

Yes, with the same ownership and share structure. Does this also apply in the case of sale to third parties or in case of uneven share structure?

Best regards
Dirk Grafe

but according to the income approach

The income approach is not an adequate method for an apartment, as the income value does not play a (significant) role here. An expert would never use this as a basis for valuation.

With the same owner and share structure, yes. Does this also apply when selling to third parties or with unequal share structure?

If the house is sold later, the question is irrelevant for the financing of the original poster. What do you mean by unequal share structure? The house has one owner, either an individual or a partnership (e.g. spouses). The share each owner holds is not important to the bank, since the house serves as collateral and every co-owner must sign the deed of trust purpose declaration.
However, if spouses are owners and only the husband becomes the borrower (which is not unusual), I can imagine that it becomes more difficult regarding the topic of ownership and liability. But this again does not affect the bank.

The income approach is not an adequate method for an apartment, as the income value does not play a (significant) role here. An expert appraiser would never use this as a basis for valuation.

It concerns rental apartments. For rental/mixed-use properties, the income approach must be applied.

If the house is sold later, the question is irrelevant for the financing of the OP. What do you mean by unequal share structure?

However, it may not be the entire house that is sold, but possibly only a single apartment!? This then results in an unequal or "foreign" share structure, which leads to the two/three land register sheets mentioned here.

Best regards
Dirk Grafe

It is about rental apartments. For rental/mixed properties, the income approach must be applied.

No, that's wrong. Just read the ImmoWertV or the BelWertV. If – here no one is talking about condominiums, but about a 3-family house (see original post) – the house is divided and apartment land registers are created, what happens to the financing? Initially nothing, since all apartments are still liable for the loan(s). Then an apartment is sold and the bank demands a certain amount. And? Then there is the original poster, who still has two apartments, and a third party. But none of this has anything to do with the original poster's questions.