Behavior in case of imminent delay by the property developer

  • Erstellt am 2023-07-29 15:10:38

Sunshine387

2023-08-01 15:17:34
  • #1
Exactly. Now only what has already been started will be completed. I would argue that almost all developers are not building anything anymore because hardly anyone can afford a new building anymore. I also fear that your house will unfortunately never be built there.
 

ypg

2023-08-01 17:57:44
  • #2
I googled the project a few days ago when brought it up. I thought it said the project would be completed by the end of 2024. What surprises me, however, is that I didn't find it on the two major popular portals. No wonder if there are no interested parties :oops:
 

11ant

2023-08-01 18:38:33
  • #3
The economic situation for property developers is by no means such that they would need to look for a new industry. However, the sales velocity is, firstly, slower and, secondly, the sales rates are more strictly adhered to before triggering the next investment step. If in the meantime write-downs and provisions can be taken because a land development shows a performance below prospectus, this is gladly accepted. Homebuyers in this game are not the customers they themselves believe they are, and certainly not the engine or target group of the whole thing, but merely symbiosis beneficiaries. The TE (and readers in a comparable situation) should adjust their perspective based on this realization. For the property developer, the home is only a by-product of their economic process. Their shareholders want returns, not to create living space or fulfill dreams.
 

mayglow

2023-08-01 18:44:56
  • #4
For me, the question of whether the developer even still wants to build is more important than whether it starts a month earlier or later.

We were also a bit on pins and needles at the beginning. As I said, the building permit wasn’t there yet and it kept getting delayed and delayed, and meanwhile, you hear that construction is collapsing everywhere and others are abandoning their projects. We also asked several times whether they really still wanted to do the project, which they always assured us they did. But yes, you do start thinking “what if they don’t.” In our case, there were also quite a few clauses in the contract about who compensates whom and when. In the end, for us it was actually the case that as soon as the building permit finally arrived, construction started right away.

By the way, of all the houses currently for sale in the project (terraced houses and semi-detached houses), less than half have been sold and there’s virtually no progress at the moment. But in our terraced house block, actually 3 out of 4 houses had already been sold when construction started. I’m also curious how things will continue with the blocks where nothing has been sold yet. Ultimately, for us that would only mean more dirt in front of the door, but oh well :)
 

11ant

2023-08-01 19:15:48
  • #5

Apparently, that was once again not clear to everyone from my previous post ;-)

One must also know that terraced houses are also in demand among landlords, so terraced house units compete with the apartments in the multi-family building, and a developer does not score an own goal there. So if and as long as it remains that only one of the four terraced house units is sold, the developer will rather offer the original poster a rescission than start building the row before the tenth of the twelve apartments is sold. In the end, I assume that the construction of the terraced houses might still be delayed by two years. The developer will not develop the overall project only partially and leave these four plots unused, but also will not jeopardize his liquidity by prioritizing buyers’ wishes over his own (and those are "business," not "homeownership").

If this was still not clearly readable for everyone: in such a project with 16 residential units consisting of 12 condominiums, 2 terraced houses, and 2 mid-terraced houses, there are always interested parties who have not yet fixed their option (and want to keep the possibility open for a while). Once the 13th residential unit is fixed, the last three are gone within 48 hours. Just so that little Erna or Fritzchen get an approximate idea of the scale. For the original poster, this is probably an emotional matter about "his house," but for other participants in the same game, these are just concrete gold securities.


Your developer is also not comparable to the original poster’s, he wouldn’t even touch such a peanuts project, it only gets serious at around sixty units, not sixteen.
 

xMisterDx

2023-08-01 21:44:28
  • #6
What motivation should the developer have to inform the person they already have under contract that they will not be building for the time being? Maybe they will still sell 1 or 2 units by November.

I don't call my client 9 months before the deadline and say, "Hey, I actually can't make it, the handover definitely won't happen on May 23, 2024."

I would do that, if at all, in April 2024...

That's unrealistic, that's not how it works. Even though sometimes it would be desirable. Whoever raises their hand first gets beaten. A basic rule in project business.
 

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