Investors and Private Users Take Note: MFH with 4 Residential Units and Great Expansion/Development Potential
OVERVIEWThis is a residential building with four maisonette apartments, built around 1753, in zone 3. Each house has two apartments. The building is heated by oil (heat distribution via radiators). Outside, there are 4 carport parking spaces and 2 outdoor storage spaces. The plot size is 1,825m2. The building has a total volume of 2,584m3.Both the building envelope and the apartments have been continuously maintained. The MFH is in a well-kept condition. Over the last 20 years, around CHF 450,000 has been invested. Currently, a 5.5-room apartment, as well as the workshop/garage and various outdoor storage spaces, are used by the owner. The remaining three apartments are rented out, partly at friendly prices and significantly below market rate.The property is suitable for private users and investors due to its diverse usage and expansion options:Private users can live in the property themselves and rent out the remaining three units, use the house as a multi-generation house, or hold the MFH as a long-term rental property.Investors have various usage options:o They can hold the MFH as a long-term investmento They can establish a condominium and sell the 4 apartments, parcel out the additional land plot, and build a single-family homeo They can plan a complete replacement constructiono They can hold the existing property as an investment and develop a single-family home on the additional land plotROOM PROGRAMThe room program is as follows:- No. 1 Ground floor/1st floor 5.5-room maisonette 136.53m2 currently self-occupied- No. 2 1st floor/attic 3.5-room maisonette 114.56m2 rented- No. 3 Ground floor/1st floor 5.5-room maisonette 110.77m2 rented- No. 4 1st floor/attic 3.5-room maisonette 132.73m2 rented- Garage/workshop currently self-occupied- Carport (4 parking spaces) included in the rent- Outdoor storage spaces (2) included in the rent- Garden areas mostly self-occupiedThe current rent is CHF 41,880.00 per year, net, due to partial self-occupation and low external rents. The market rent, if all apartments, including ancillary rooms and parking spaces, are rented out, is around CHF 89,040.00 per year, net, according to Fahrländer Partner (FPRE).EXPANSION/DEVELOPMENT POTENTIAL AND RETURN ON INVESTMENT CALCULATIONSA feasibility study shows the following options:Variante 1: Replacement constructionIn this variant, the existing property is demolished and replaced by two new buildings:- House A: Single-family home with approximately 160m2 of living space, divided into 2 full floors and 1 attic floor- House B: MFH with approximately 690m2 of living space, divided into 3 full floors and 1 attic floorVariante 2: Establishment of a condominium for the existing property and development of a single-family home on the additional plotIn this variant, the additional land plot is parceled out and built with a single-family home. The four existing apartments are either held as a rental property or divided into condominium units and sold. The sales proceeds from the condominium units are expected to be around CHF 2.5 million. In addition, there is the proceeds from the sale of the additional plot, which is expected to be around CHF 400,000.DEFINITION OF SALES PRICE- Yield value CHF 1.78 million (based on market rents and a capitalization rate of 5%)- Land value of the additional plot CHF 400,000.00. This results in a target sales price of CHF 2.18 million.