Building a house and then an apartment building straight away? | Your news and current news for Neuss

Construction of apartment building Image source: Ulrike Leone via pixanay

For most people, the purchase and construction of an apartment building is a decision of extremely far-reaching consequences, which is usually only dealt with once in a lifetime – also due to the relatively high investment involved.

As a rule, the mere construction process of an apartment building takes between 6 and 12 months, not including all preliminary work. There are many factors to consider when building an apartment building, such as: B. The zoning regulations, the size and layout of the building and the type of construction.

What common problems can arise when building an apartment building?

Common problems when building an apartment building include extremely poor workmanship, construction delays, and financial difficulties. There are several ways to avoid problems when building an apartment building, such as: B. by hiring a reputable construction company, a well thought-out plan and realistic expectations.
Living in an apartment building definitely has some advantages, e.g. B. more security and much greater social interactions and the total cost of the house is shared equally among all parties, which reduces the cost of housing quite significantly. Apartment buildings can also have some disadvantages, e.g. B. the noise pollution from the direct neighbors and also a little less privacy.

How can I finance an apartment building?

An apartment building can usually be financed in the same way as any other house construction, with a loan from a bank. The more equity, the cheaper the loan, these facts don’t really change with the size of the project. Building and owning an apartment building has many advantages. One advantage is that the many residential units can generate rental income. This makes it much easier to offset mortgage payments or other expenses associated with owning the property. Another benefit is that you can live in one unit and rent out the others, which helps save money on your own housing expenses. In addition, the Tax advantages of owning an apartment building entail, since, for example, the interest on the mortgage and other expenses related to the property are deductible.

Before building or buying an apartment building, there are a few things to consider

Some things to consider are location, as what clearly defines the potential for potential rental income is location, location and location, and only then are aspects of general condition and amenities added. Consideration should also be given to the costs associated with owning and operating an apartment building, e.g. B. Mortgage payments, taxes, insurance, repairs, administration and maintenance.

The Risks

Some risks associated with buying an apartment building are:
1. The property may not be properly listed as a multi family home.
2. The condition of the property is much worse than initially perceived and expensive repairs
are required.
3. Rental income is lower than expected.
4. The costs associated with owning and operating a multi-family property,
can be high.
5. There is always a risk that the tenant will damage the property or not pay the rent.

What should you pay attention to after building an apartment building?

It is important to always keep an eye on the condition of your own apartment building and to ensure that any necessary repairs are carried out in a timely manner. One should also keep abreast of any changes in local zoning regulations that may affect the property in any way. Finally, it is also important Check prospective tenants carefullyto avoid problems in the future.

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