Where is the return on the property hidden?

This assessment can most likely be made by a tax advisor with current real estate knowledge based on all the information provided. Discussing something so specific in a forum is difficult and may lead to an incorrect result in case of doubt, because it is rather very individual. There are even investors who consciously accept losses when purchasing to optimize other investments. Just as one example of many, many.

Thank you Nordanney for your input. Just skimmed [wiki], I need to get familiar with it. Spontaneously, I consider a return of 4-5% very unrealistic. Who pays, with a 50/50 split, for 500 sqm land 1500 to 2000 euros rent? Financed, he would need about 30 years for the value. But, I have it in mind, thanks.

Lumpi, we have already discussed this once in a bank meeting. I don’t think we can realize something like that in this residential area. Max would be about 5-6 units. That’s not enough either.

Toxic, yes that’s clear, but it was only about my return calculation. We just scheduled an appointment with an expert for next week, let’s see what he advises us. But it looks like a development of that size simply doesn’t make sense. And that’s annoying. So in the end, we either waste it or gamble it away.

Thanks for now

What do you expect? Someone who owns undeveloped land and just lets it lie around is no poor church mouse.

the question remains why someone with 600,000€ equity and a plot of land worth 1 million euros puts themselves through this as a small landlord – with the hope of a few euros – and starts all the stress. there is the risk of even making a loss in the end. you have to invest hundreds, if not thousands, of hours to finish the house, constantly look for tenants (who rents permanently for 2000 euros, you might as well buy – a problem everyone has with expensive rental apartments) and still get into debt for the whole thing. actually, selling would be the most sensible option while prices are currently really high. that will certainly change with rising interest rates. with the money, you can have larger rental complexes built elsewhere. with 1.5 million euros, you can build a nice row house project with about 5 units on a much cheaper plot.

This assessment can most likely be made by a tax advisor with up-to-date real estate knowledge based on all the information. Discussing something so specific in a forum is difficult and, if in doubt, leads to a wrong result because it is rather very individual. There are even investors who consciously accept losses in purchase to optimize other investments. Just as one example among very, very many.

As a tax advisor, I stay out of properties from the asset management of my clients. However, to a friend, I would advise, for the sake of the children, to do nothing at first until the children can build something on the property. Land has always been stable in value in the long term. The building structure itself loses value compared to the land.

I'm out here, someone trying to "beautify" the return on 1 million. Either this is fake or simply a "I have too much and don't know where to put it" thread.