Hello Forum,
I am new here and not entirely sure if this is the right section of the forum for my question. I apologize in advance if I have posted in the wrong place.
We are currently deeply involved in planning the construction of a single-family house. After some online research, however, I came across some rather negative points.
The house design is being handled by a planning company. The managing director of this company had an insolvency with his former construction business in 2010 (the reason for the insolvency was, in summary, the financial crisis—at least according to the managing director’s statement).
The construction phase will then be managed by a developer. This developer company was newly registered in the commercial register in early February and is owned by the brother of the managing director mentioned above. The brother is a master bricklayer and business economist and runs another construction company, which, however, does not have much information available online.
All in all, this gives a rather negative impression. Since our family will be growing in the next few weeks and our current apartment will soon be too small, we are willing to consider every possible option (unfortunately, the real estate market here offers very little flexibility).
How would you assess the entire project? Does it make sense to seriously pursue the construction, or would it be better to stay away? A credit check on the developer seems rather pointless, as the company was only registered about a month ago.
I hope for some opinions, rough assessments, and perhaps suggestions on how to proceed.
Best regards
I am new here and not entirely sure if this is the right section of the forum for my question. I apologize in advance if I have posted in the wrong place.
We are currently deeply involved in planning the construction of a single-family house. After some online research, however, I came across some rather negative points.
The house design is being handled by a planning company. The managing director of this company had an insolvency with his former construction business in 2010 (the reason for the insolvency was, in summary, the financial crisis—at least according to the managing director’s statement).
The construction phase will then be managed by a developer. This developer company was newly registered in the commercial register in early February and is owned by the brother of the managing director mentioned above. The brother is a master bricklayer and business economist and runs another construction company, which, however, does not have much information available online.
All in all, this gives a rather negative impression. Since our family will be growing in the next few weeks and our current apartment will soon be too small, we are willing to consider every possible option (unfortunately, the real estate market here offers very little flexibility).
How would you assess the entire project? Does it make sense to seriously pursue the construction, or would it be better to stay away? A credit check on the developer seems rather pointless, as the company was only registered about a month ago.
I hope for some opinions, rough assessments, and perhaps suggestions on how to proceed.
Best regards
Seridan schrieb:
(Unfortunately, the real estate market here offers very little flexibility). Even in the most saturated real estate markets, there is usually enough flexibility so that you don’t have to take a gamble like Russian roulette.
Seridan schrieb:
The house planning is done by a planning company. The managing director of this company had a bankruptcy with his former construction company back in 2010 […]
The construction phase is then handled by a developer. This developer company was newly registered in the commercial register at the beginning of February and is owned by the brother of the managing director mentioned above. A developer builds on their own land and sells you the house along with the property. You have nothing to do with the planning company. In this case, it is probably more of a general contractor. Even when the managing directors are related, the companies operate independently. Otherwise, why would you separate the company carrying out the construction from the one you sign the contract with—if not to your disadvantage?
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
11ant schrieb:
A developer builds on their own land and sells you the house along with the land.Correct, basically. However, in this case, they wouldn’t have any issue selling the land first and then starting construction.
11ant schrieb:
What other reason would there be to "separate" the implementing company from the one you sign the contract with here, except to your disadvantage?That’s exactly what I’m wondering as well. I thought it might have something to do with tax advantages for them?!
So, you would rather avoid building with them, right? Even if they can provide sufficient guarantees?
Seridan schrieb:
Right, actually. However, he wouldn’t have any problem selling the plot first and then starting construction.
I’m wondering about that too. I thought it was because of tax benefits for him?!
So you would also rather avoid building with him, right? Even if he can provide sufficient guarantees? This has nothing to do with guarantees. Do you want to pay real estate transfer tax on your entire financing?
Aside from the real estate transfer tax, how could you even think about building with him given the preliminary information? I wouldn’t even consider it. Let others be the guinea pigs.
I really don’t get it! Are you getting a 50% discount or is the land being given to you?
But anyway, it’s not my money, family, or children.
kaho674 schrieb:
It’s a bit unclear why you want to commit to this company if they already seem confusing to you.
Don’t you have a plot of land, and are they offering something suitable? If so, are you sure it’s really their land?The plot belongs to the company, so unfortunately we have to build with them if we want to place our house there.
Zaba12 schrieb:
This has nothing to do with guarantees. Do you want to pay the property transfer tax on your entire financing?
Aside from the property transfer tax, how does it even occur to you to build with them based on the preliminary information? Let others be the guinea pigs.
I just don’t get it, honestly!That’s normal when building with developers, isn’t it? You pay the property transfer tax on the total price. Only if you already own the land beforehand, or buy it first, do you pay the property transfer tax only on the land. Or am I completely wrong here?
I don’t know exactly where you live. We live in the Heilbronn region / Baden-Württemberg. We have been searching for a property (either existing or new build) for seven years and can’t find anything — at least nothing decent. Either prices that are through the roof, or fixer-uppers where you still have to invest another 250,000 euros (about 270,000 US dollars) to bring them up to standard.
Yes, I agree, it’s really silly even to consider new builds based on preliminary information, but I think this shows how desperate people are nowadays about real estate (certainly not everywhere in Germany, but unfortunately it’s like this in our region).
But if I were 100% convinced about the building project, I wouldn’t be asking here.
Sometimes you just need a few pointers to avoid making a mistake, right? I think it’s not wrong to explain the situation here for that reason.
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