Ultimately, the house costs him 600,000€, since if he were to build elsewhere, he would eventually inherit the 125,000€ and could either use it for special repayments or invest it differently.
Nonsense.
If he builds externally in a comparable way, the land costs him 100K€, the house 350K€, so a total of 450K€.
In the event of inheritance, he recovers about +100K€ and ends up with 350K€. How an engineer can fail to understand this is beyond me.
Of course, it is a bit more complicated since no one knows the value development and, on the one hand, the timing (125,000€ now or 125,000€ in maybe 20 years) also has a significant influence.
This has nothing to do with the fundamental consideration. The statement that his house costs 600K€ is simply outrageous.
I believe you that the land is in a great location
It isn't; the price is far too low for that, especially by Krefeld standards. That is a price easily exceeded in any village with 10,000 inhabitants.
and living next to the parents also has advantages. But I would definitely not invest that much money in a plot of land that doesn't belong to me.
Repeating the same thinking errors over and over again does not lead to an adequate result.
If it can be divided, the building plot belongs to him - end of story. If it cannot be divided, there is a subdivision plan, which is part of the notarial contract. This is a
standard procedure in which the individual ownership is regulated, which I have
described several times so far.
Maybe I'm too pessimistic, but here everyone is discussing 10, 15, 20, or xxx years of fixed interest periods and how much risk one wants to take. In such a constellation, however, the whole thing comes with many, many more unknowns.
This is the same legal constellation as with any condominium in a multifamily house. So, in your opinion, are all buyers of a condominium hopelessly naive adventurers?
Yes, there are daily similar cases where this is done, but 90% of those are renovations or extensions where the overall value of the property is increased and multi-generation houses are created.
With all due respect - you have absolutely no idea what you are writing about. This is done daily, also with complete houses and always when splitting is not desired or technically/legal not possible or associated with significant additional costs. This has really nothing to do with renovations or extensions.
That is usually significantly cheaper than new construction. I also have two friends who built a second house on their parents' property. But here it is actually not about an extension, but about a new house, which unfortunately is attached to an old one. That means that it is not cheaper than a single-family home, but on the other hand has a dilapidated annex. You can do many things, but settle these matters now and not in 20 years.
This scenario simply does not exist. He already described that the houses are planned to be autonomous and that the parents' house can be demolished. Presumably, there is no building permit otherwise, which means nothing other than that each house can be demolished at will and the other will remain standing. I also don’t understand what is so hard to grasp about that – there are two houses standing side by side, the only thing connecting them is a line of roof tiles and glued-on styrofoam insulation. Any architect can manage that.
Such "negotiations" cause tensions even in the best families, and to be honest, there is only one fair solution for everyone, and that would be the payout of your brother. But that is not possible, [...]
Who says the payout of the brother is not possible? I would immediately have an idea how to solve that. And who says that this family cannot come to an agreement and tensions are provoked? There are over 1000m² of building land available – they would be foolish not to use it.
so a compromise must be found with which everyone is satisfied. As of today, it is not a good solution for either you or your brother. You now receive your inheritance (even if only partially) and your brother nothing,
How can facts/information from this thread be overlooked so frequently and so consistently again and again? The brother is supposed to receive 50K€, which clearly is also possible for the OP –
is 50K€ really nothing?
but maybe only once he has paid off his own house.
The brother is obviously at a different stage of life – that can happen.
For that, you don't know what will happen to the land your house is built on after your parents' death. That would not be a solution for me.
The new house stands on
his land. Keyword
subdivision plan! Part of the
notarial certified purchase/transfer contract! Furthermore, in the event of inheritance, the land would go 50% to him if your assumption were correct (which it definitely is not), so you would also know exactly what happens to the land then. How can that be ignored again and again?
Another scenario: What if you separate from your partner? Is that person also involved in the investment? What are the ownership rights then? What if a possible new partner is incompatible with your parents?
Every home builder must consider these questions, but usually you jointly incur liability. Here your partner would then own half of an extension on foreign land. If she is completely out of the financing, she would be the one left out. She supports the project now and ends up with nothing.
That would, in the worst case, be partial ownership. In the land register, the parents and the builder, depending on the constellation, possibly also his wife/partner, thus two to four names appear. In addition, shares of value that can be clearly assigned to each individual owner (!) are entered in the land register. This is not the best of all solutions but legally still clear.
Best regards,
Dirk Grafe