ᐅ Exchange property after purchase

Hello,

We have recently purchased a plot of land for which we will submit a building permit / planning permission application in calendar week 02.

Some time ago, I submitted a purchase inquiry to RAG for a different plot of land. I was recently informed that the response is expected in the first quarter of 2020.

Would it be a problem to switch to the other plot then?

The other plot would need to be included in the financing, and the first one would be sold again. The second plot would be almost fully financed except for the incidental purchase costs. The house can be built on the other plot exactly as planned. Additionally, 20,000 in contractor costs would be saved.

hegi___ schrieb:

Is it a problem to switch to the other plot then?

Apart from it becoming quite expensive for you (property transfer tax, notary fees, court costs, possibly mortgage registration and cancellation, new fees for the building permit / planning permission, etc.), it should not be a problem for the bank (costs may also apply there).

So, plot 1 costs 40k and plot 2 costs 30k. Accordingly, the additional costs are relatively low, and I save 20k in expenses.
So, financially, it will be a profitable deal.

With the low land value, the biggest risk is probably the resale.
What should the price per square meter (square foot) be in that case?

hegi___ schrieb:

So, plot 1 costs 40k and plot 2 costs 30k. Accordingly, the additional costs are relatively low, and I save 20k through work.
So financially, it will be a profitable deal.

That's right! Where does RAG sell at such a bargain price? Here in the Lower Rhine region, prices are more like 2-300€ per square meter (21-28 USD per square foot).

So, I could probably resell plot 1 with a profit of around 10,000 because I bought it from a private seller below market value, and there are virtually no available plots on the market here.

The price ranges from 65 to 70 € per square meter (0.6 to 0.65 per square foot).

nordanney schrieb:

That’s true! Where does RAG sell at such a bargain price? Here in the Lower Rhine region, it’s more like 200 to 300 € per square meter (18.5 to 28 per square foot).

Saarland