Buy old house, keep the land, sell the house, build the house

Hello house building community,

now I have to try to keep it brief as this is a relatively complex project. We (my family and I) want to buy a house, split the land, sell the existing building with a part of the property again and then build new on the rest of the property. The semi-detached house is located in a suburb south of Kempten, should cost 280,000 + realtor fees, was built in 1968, has about 100m² living space, 475m² land, windows from 1980, gas heating from 1997, is partially clad with Eternit panels, bathrooms need to be redone, the roof was insulated and converted amateurishly.

It is already clear that building on the property is allowed, that should be fine. Problems and uncertainties now are: - We (still) do not have a valuation of the house - What additional costs will come up (tax on sale, property tax on purchase (although only part is kept), speculation tax?, division costs, etc.) - We have an advisor, he has already clarified whether building on the "remaining property" is possible but he is now focusing far too much on the new build, although we can only turn to the new build after we have sold the semi-detached house again. - How should/can we finance the "short-term ownership" of the house (flexible loan and then the conversion into a "normal" house financing) - Where are still costs hidden that we do not have on the list? - If we proceed further, significant costs are already coming up... (reservation fees, advisor fees, notary costs for contract drafts, etc.) all of that would be lost if we decide against the "model" at a later date.

An additional problem is that the sellers are of course only reserving the whole thing for us for a limited time AND we are flying on the day after tomorrow on our annual vacation, from which we would only be back shortly before the "due date" of the signature at the notary.

You see, quite tricky. If we had not been searching for so long (house, semi-detached house, property, anything) we would surely call it off immediately. This is our first somewhat realistic chance to build here... (there are simply no properties available here)

Attached... I will stop now...

I look forward to your opinions, recommendations, assessments!

Greetings from the Allgäu

Florian

Hello, is what is marked in red your building request? Are there any official documents that the plot is divisible? And what type of development would be permitted (preliminary building inquiry)?

With 480m2 still sharing something and maintaining distance areas [eInhalten], how is that supposed to work? And the annual vacation comes so suddenly that a decision that costs a lot of money comes so suddenly.

And honestly, who buys a plot of land that is well under 300 sqm?

Hello Florian,

I would be surprised if the development you planned is permissible. Does House# 10 have no windows/openings on the west side? Even if everything is closed there – the building usually must have a 3m setback from the boundary, only after that comes your garage, so everything would have to be shifted 3m to the west. Or you build directly attached to House#10 if that is technically possible.

The towel-shaped plot with the "terraced middle house" will of course lose a lot of value. The condition of the house and the standard land value would be interesting.

In any case, not a purchase to be made in a hurry. From my point of view, this doesn’t work, so you first have to find out what kind of development is actually possible.

Best regards
Dirk Grafe

Maybe this only works with WEG division? I am putting a question mark there because I have no idea how this legally applies to you now, since your "advisor" (financial advisor? construction advisor? something else?) says that building is possible but how it may be built and how the division should exactly take place is not really clear here. However, there is a huge difference between making a real division (at least here there are minimum sizes prescribed for the remaining plots and then you probably also have to observe the setback areas) or a WEG division, which I personally would never buy and which would probably also significantly reduce the purchase price of the land shares, especially if the buyer finds out that building will still take place. I would not do it at all costs and under pressure and with all these ifs and buts (including the incalculable cost factors) but rather enjoy the vacation comfortably and then, refreshed and after several nights of thinking it over, approach the matter anew.