Develop building land. Profitability test for beginners?

  • Erstellt am 2019-04-06 03:10:42

DASI90

2019-04-07 09:43:04
  • #1
It has already been written here. The inclusion in the land use plan initially means nothing except that a development plan could be designated here in the next 10-20 years if needed. However, this is still far from being building-ready land. In the meantime, there are many reasons that can lead to the areas being quietly removed from the land use plan (environmental concerns, municipal elections, etc. etc.) As an example: our new development area was included in the land use plan in 1985 and was ready for construction in 2019.

And remember, 5500 sqm of arable land is not the same as 5500 sqm after a reallocation.

So it is pure speculation. But I think it’s better if you just keep it. It’s not about you buying it anyway. The price for the arable land probably won’t be that great now.
 

Escroda

2019-04-07 10:00:09
  • #2

That is wrong. If he could - that is, assuming the expertise - he could go to the municipality himself and draw up a development plan and develop the area. With the necessary persistence and the required money, something like that could be completed within two years.
Since the personal prerequisites are not met, however, the project is at least uneconomical.
 

wobbbel

2019-04-07 18:33:00
  • #3
Ok. Thank you very much for the explanations. That already helps me a lot! I had imagined it to be somewhat easier.

One thing is still not quite clear to me: Assuming I have the area converted into building land by the planner through a development plan (I have already obtained the large estimate of 15,000 euros). Can I then hire/pay a development company to develop the area? Or does it always work in such a way that I have to sell it to the development company?

Would this scenario ([Bebauungsplan erstellen lassen und dann an Erschließungsträger veräußern]) make sense for a layperson like me? Would it be financially somewhat worthwhile, and would it be relatively low-risk?

Thanks again and best regards!
 

Nordlys

2019-04-07 21:01:56
  • #4
The planning office makes the development plan. Ideally in coordination with the municipality, which has to approve it. Then a civil engineer comes into play, who carries out the actual development according to the plan. That would be roads, lighting, sewage, the suppliers for gas, water, electricity have to be installed, a surveyor has to mark out the plots as they are drawn in the plan, stake them out, and parcel numbers have to be assigned. Only when all of this is pre-financed and done can developed building land be sold. You can commission and pay for that yourself, that would be possible, but it would probably be far too expensive to make a profit. However, if a developer buys it from you and carries out all of it with their own equipment and personnel, it can look very different. Consider why nowadays municipalities almost always work with private developers instead of developing their land themselves.....k.
 

wobbbel

2019-04-08 00:12:44
  • #5
mhm. ok. and does the development agent only buy the land from me if the development plan is already in place, or would they prefer to handle that themselves? And how much will I get for my land then. If the price for developed building land is about 30 euros?!
 

Nordlys

2019-04-08 09:19:10
  • #6
No. He wants to do the B plan and development himself. Regarding the value of your undeveloped building land: see above, appraisal committee of the district.
 

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