masterandy
2015-05-06 11:36:00
- #1
Hello everyone,
I have some questions regarding my/our construction project concerning real estate transfer tax, but also contracts and financing.
About the project:
Location: Bielefeld
Development plan: (partial) commercial area
Object: multi-family house with commercial space and basement
The house is supposed to "look" like this:
The basement and ground floor will be used commercially. Half of the 1st floor and the attic will be my apartment (approx. 145 sqm) plus a large roof terrace on the garage and some garden.
The other half of the 1st floor and attic will be small residential units that are to be rented out.
The building consortium consists of me, my father, and his business partner (Peter). The two want to run a company in the commercial part.
The plot on which the building is being constructed is owned half by Peter and half by an uninvolved third party.
To save real estate transfer tax, my father and I now want to buy the half owned by the uninvolved third party and thus only pay real estate transfer tax on that.
The construction is basically supposed to be turnkey executed by a company. However, we will provide extensive own work (my father is self-employed in the field of building components). Besides, I plan to complete my apartment with even more extensive own work.
Is that understandable so far?
Now to my problem...
Originally, I actually did not want to be part of the building consortium because I am afraid of a possible bankruptcy for which I would then be jointly and severally liable with my assets. However, I also want to save the real estate transfer tax amounting to over 11,000 EUR.
My apartment should have cost about 180,000 EUR after completion.
Would there be a way to save the real estate transfer tax and at the same time not be part of the building consortium?
If I were to belong to the building consortium, I could only take out financing together with the other two and not—as I originally planned—alone for myself?!
Would it possibly be feasible to make a partition declaration before the start of construction and then secure the financing via my apartment land register?
I hope that was all somewhat comprehensible...
Best regards
Andy
I have some questions regarding my/our construction project concerning real estate transfer tax, but also contracts and financing.
About the project:
Location: Bielefeld
Development plan: (partial) commercial area
Object: multi-family house with commercial space and basement
The house is supposed to "look" like this:
The basement and ground floor will be used commercially. Half of the 1st floor and the attic will be my apartment (approx. 145 sqm) plus a large roof terrace on the garage and some garden.
The other half of the 1st floor and attic will be small residential units that are to be rented out.
The building consortium consists of me, my father, and his business partner (Peter). The two want to run a company in the commercial part.
The plot on which the building is being constructed is owned half by Peter and half by an uninvolved third party.
To save real estate transfer tax, my father and I now want to buy the half owned by the uninvolved third party and thus only pay real estate transfer tax on that.
The construction is basically supposed to be turnkey executed by a company. However, we will provide extensive own work (my father is self-employed in the field of building components). Besides, I plan to complete my apartment with even more extensive own work.
Is that understandable so far?
Now to my problem...
Originally, I actually did not want to be part of the building consortium because I am afraid of a possible bankruptcy for which I would then be jointly and severally liable with my assets. However, I also want to save the real estate transfer tax amounting to over 11,000 EUR.
My apartment should have cost about 180,000 EUR after completion.
Would there be a way to save the real estate transfer tax and at the same time not be part of the building consortium?
If I were to belong to the building consortium, I could only take out financing together with the other two and not—as I originally planned—alone for myself?!
Would it possibly be feasible to make a partition declaration before the start of construction and then secure the financing via my apartment land register?
I hope that was all somewhat comprehensible...
Best regards
Andy