ᐅ What is the correct approach? Feeling a bit unsure / under time pressure
Created on: 11 Sep 2016 16:03
R
rretsiem
Hello,
As the situation with the plot of land is becoming more concrete and we have now been able to reserve it from the owner (overall 14 days), I’m having some difficulties structuring our house building project and figuring out the best approach. Maybe you can help me or at least reassure me.
Current status:
My head is spinning right now, and I’m not quite sure how to start. We have about one week left for the plot (possibly a grace period), but then the purchase contract and notary must be arranged, and for that, the approved loan is already necessary. Here, I see a serious timing problem.
I would be very grateful for any advice!
As the situation with the plot of land is becoming more concrete and we have now been able to reserve it from the owner (overall 14 days), I’m having some difficulties structuring our house building project and figuring out the best approach. Maybe you can help me or at least reassure me.
Current status:
- Plot on a slope (buildable according to §34 of the Building Code) reserved, purchase price still to be negotiated.
- Our preferred construction advisor has requested the “electronic surveying data” (??) from the building authority to check the best way to develop the site. We are waiting for a response due to holiday season and understaffing at the building authority.
- At the moment, there is no building proposal, plan, or anything similar on which to base an estimate of the house price plus additional construction costs.
- To pay for the land and build the house, we need a loan. Here I see a chicken-and-egg problem since banks require a cost breakdown for land and house.
- Quotes for the shell construction, basement, etc. can only be obtained once the plan is finalized. This will surely take a few more weeks (assumption).
- I don’t think it makes sense to take out a separate loan just for the land, and the forum also repeatedly advises against this (rightly so).
- We visited a representative of Dr. Klein on Friday regarding inquiries and still have two appointments this week with our local banks for initial loan inquiries based on estimated costs for the house (land plus additional costs are almost fixed).
My head is spinning right now, and I’m not quite sure how to start. We have about one week left for the plot (possibly a grace period), but then the purchase contract and notary must be arranged, and for that, the approved loan is already necessary. Here, I see a serious timing problem.
I would be very grateful for any advice!
The city/municipality states that the average land price here is 250€/m² (approximately 23 USD/ft²). So that would fit within expectations. However, since we have already declined other plots available here that are priced at 350-400€/m² (about 33-37 USD/ft²) and are still being sold, we are cautious for now.
ypg schrieb:
Sign the purchase contract (if it is your dream plot) and set the handover and payment date, for example, December 19th 🙂@ypg I wasn’t aware of that; I thought the purchase contract is signed with the notary and not beforehand. Does that then mean I have to make the payment (or instruct the bank to do so) plus pay the property transfer tax, and only then is the purchase finalized?
We have already been able to clarify a few questions. There are no easements on the property and everything else seems to be in order. Next week we will meet with the owners in person to discuss the details (price, schedule, etc.).
As lastdrop mentioned: a date is set in the notary contract. It is rarely dated as immediate, since there are still many arrangements to be made. Therefore, you can remain calm and choose the end or even the beginning of the next year. Three months is not uncommon.
You do not become the owner from the notary appointment, but from the date stated in the contract.
You do not become the owner from the notary appointment, but from the date stated in the contract.