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Teufelchen198513 Nov 2012 16:03Hello everyone,
I am new to this forum and hope to get some good advice from you.
About 2 years ago, my partner and I decided that we want to build a house. Unfortunately, none of the existing houses we looked at are suitable for us.
Over the past 2 years, we have visited several model home fairs and have already looked at some developers.
Now there is a new residential area in our town where we have a tough choice:
1. A 500 sq m (5,382 sq ft) plot with a play street on the north side (18 linear meters (59 feet)), neighbors to the west and east, and a green belt to the south. Unfortunately, we can only get this plot if we build with the developer, about whom we could hardly find any information online except their website. That makes us somewhat hesitant. We have already received and carefully studied the building and performance specifications. In a meeting yesterday, almost all of our concerns were dismissed. This is an offer for a detached urban villa with about 130 sq m (1,399 sq ft) of living space, a basement, and a 3 x 9 m (10 x 30 ft) garage.
2. At the same time, we have also independently applied for a plot in the desired new development. We were offered a 400 sq m (4,306 sq ft) plot with play streets to the south (27 linear meters (89 feet)) and east (15 linear meters (49 feet)), with neighbors to the west and north. Basically, we do not mind the smaller plot because we do not want a large garden and would have less maintenance (we are both working and often do overtime). The plot is naturally also cheaper to acquire. Our concern here is simply the larger maintenance effort for the street, such as winter work, hedge trimming, etc. We would probably handle the construction through a well-known and repeatedly recommended architect. Whether this will be cheaper than building with the developer is still uncertain.
So, this turned out to be a bit longer than I intended. But I hope some of you will take the time to read it and support us in making our decision with your comments.
Have a nice day
Teufelchen1985
I am new to this forum and hope to get some good advice from you.
About 2 years ago, my partner and I decided that we want to build a house. Unfortunately, none of the existing houses we looked at are suitable for us.
Over the past 2 years, we have visited several model home fairs and have already looked at some developers.
Now there is a new residential area in our town where we have a tough choice:
1. A 500 sq m (5,382 sq ft) plot with a play street on the north side (18 linear meters (59 feet)), neighbors to the west and east, and a green belt to the south. Unfortunately, we can only get this plot if we build with the developer, about whom we could hardly find any information online except their website. That makes us somewhat hesitant. We have already received and carefully studied the building and performance specifications. In a meeting yesterday, almost all of our concerns were dismissed. This is an offer for a detached urban villa with about 130 sq m (1,399 sq ft) of living space, a basement, and a 3 x 9 m (10 x 30 ft) garage.
2. At the same time, we have also independently applied for a plot in the desired new development. We were offered a 400 sq m (4,306 sq ft) plot with play streets to the south (27 linear meters (89 feet)) and east (15 linear meters (49 feet)), with neighbors to the west and north. Basically, we do not mind the smaller plot because we do not want a large garden and would have less maintenance (we are both working and often do overtime). The plot is naturally also cheaper to acquire. Our concern here is simply the larger maintenance effort for the street, such as winter work, hedge trimming, etc. We would probably handle the construction through a well-known and repeatedly recommended architect. Whether this will be cheaper than building with the developer is still uncertain.
So, this turned out to be a bit longer than I intended. But I hope some of you will take the time to read it and support us in making our decision with your comments.
Have a nice day
Teufelchen1985
Whether the whole process will be cheaper than going through a developer is still questionable at the moment.Why?
The plot of land is cheaper, and no property transfer taxes apply to the house, unlike in the developer solution.
If you pay more for the house from the architect, it is probably because you are also getting more… or do you believe the developer’s house would be noticeably cheaper at the same quality and features?
H
Häuslebauer4013 Nov 2012 17:02Shism is right. With the same house quality, only the second option can be the more affordable one.
You can avoid trimming the hedge by simply not planting one. 🙂
You can avoid trimming the hedge by simply not planting one. 🙂
When working with a property developer, the real estate transfer tax applies, but no sales tax (VAT) has to be paid on the service itself.
In return, the developer cannot claim input tax on the services provided to them (subcontractors).
Ultimately, this means that the pure service from the developer (including their profit) can be obtained at 19% less.
Depending on how much labor the developer provides and how much profit is factored in, the project can end up being more or less expensive than a comparable general contractor / construction manager / architect project.
In return, the developer cannot claim input tax on the services provided to them (subcontractors).
Ultimately, this means that the pure service from the developer (including their profit) can be obtained at 19% less.
Depending on how much labor the developer provides and how much profit is factored in, the project can end up being more or less expensive than a comparable general contractor / construction manager / architect project.
E
EFH-Südheide14 Nov 2012 06:49Just following my gut feeling, I would choose the second option. You already know the architect who was recommended to you. You don’t want too large a plot...
The maintenance probably won’t be that demanding either; there are usually neighbors’ children who want to earn some money (at least that’s the case with my parents, who have had the neighbors’ kids rake the leaves for about 5 years now... just as an example).
Something has already been said about the rest.
The maintenance probably won’t be that demanding either; there are usually neighbors’ children who want to earn some money (at least that’s the case with my parents, who have had the neighbors’ kids rake the leaves for about 5 years now... just as an example).
Something has already been said about the rest.
B
Bauexperte14 Nov 2012 08:47Hello,
The main and most obvious differences between developer and architect lie in:
Whether an architect is cheaper or not – and here Shism is absolutely right – primarily depends on your individual preferences. One thing an architect is definitely not: they do not take on the role of a developer or general contractor (GC), because then they would effectively be one and liable to you.
You therefore need to decide for yourself – regardless of whether you accept the developer’s offer or not – how much decision-making responsibility you are comfortable having without relying blindly on an architect. If the architect does their job properly, they will propose three contractors per trade (we have a total of 16 trades involved in the construction), from which you must select the right one for you. However, it is not uncommon for architects to work with a fixed group of contractors and only inquire once per trade—if at all. In effect, this makes them a GC, but they avoid liability by contracting with various trades individually on your behalf.
I get the subjective impression that you feel quite uncertain and that your decision is not solely based on choosing the right plot. Is there anyone you have spoken to about your new build project whom you fully trust?
Best regards
Teufelchen1985 schrieb:Where is this new development located?
There is a new housing development in our area, and we have the difficult choice to make:
Teufelchen1985 schrieb:This is a common practice – often interested buyers can also purchase plots directly from the local municipality because the developer has only reserved them, not yet purchased them!
Unfortunately, we can only get this plot if we build with the developer ...
Teufelchen1985 schrieb:What concerns did you have, and how were they addressed?
... During the meeting yesterday, almost all of our concerns were dismissed. The offer is for a detached city villa of about 130 sqm (1400 sq ft) living space, with a basement and a 3x9 m (10x30 ft) garage.
Teufelchen1985 schrieb:What new planting requirements does the municipality specify? And how much of the linear meters are actually used by pedestrians?
At the same time, we independently tried to obtain a plot in the sought-after development. Now we have been offered a 400 sqm (4300 sq ft) plot, with a play street to the south (27 linear meters (89 ft)) and Oster (15 linear meters (49 ft)) ... Our concern is simply the higher maintenance effort for the street, i.e., winter services, hedge trimming, etc.
Teufelchen1985 schrieb:You should quickly disregard the reply from "Musketier" regarding tax savings/performance/developer, as it is not accurate. As a final customer, you will always pay the full VAT; we are all required to quote you gross prices as private clients.
We will probably carry out the construction through a well-known and frequently recommended architect. Whether this will be cheaper than going through the developer is still questionable.
The main and most obvious differences between developer and architect lie in:
- the real estate transfer tax of 5% on the land and house when using a developer
- the additional effort involved in selecting and awarding contracts when working with an architect
Whether an architect is cheaper or not – and here Shism is absolutely right – primarily depends on your individual preferences. One thing an architect is definitely not: they do not take on the role of a developer or general contractor (GC), because then they would effectively be one and liable to you.
You therefore need to decide for yourself – regardless of whether you accept the developer’s offer or not – how much decision-making responsibility you are comfortable having without relying blindly on an architect. If the architect does their job properly, they will propose three contractors per trade (we have a total of 16 trades involved in the construction), from which you must select the right one for you. However, it is not uncommon for architects to work with a fixed group of contractors and only inquire once per trade—if at all. In effect, this makes them a GC, but they avoid liability by contracting with various trades individually on your behalf.
I get the subjective impression that you feel quite uncertain and that your decision is not solely based on choosing the right plot. Is there anyone you have spoken to about your new build project whom you fully trust?
Best regards