Planning and single-family house construction

Hello forum,

I am new here and not quite sure if I am in the right part of the forum with my question. I apologize if I have placed the topic incorrectly.

We are currently intensively dealing with the construction of a new single-family house. However, after some (internet) research, I have come across rather negative points.

The planning of the house is done through a planning company. The managing director of this company had an insolvency in 2010 with his former construction company (the reason for the insolvency was, roughly summarized, the financial crisis. At least according to the managing director's statement).

The construction phase is then taken over by a developer. The developer is a company that was newly registered in the commercial register at the beginning of February and is owned by the brother of the aforementioned managing director. The brother is a master bricklayer and business economist and has another "construction company" (about which little can be found on the internet).

All in all, there is rather a negative feeling here. But since our family will be growing in the next few weeks and our apartment will soon be too small, one grabs every opportunity available (unfortunately, the real estate market leaves little room here).

How would you evaluate the whole project? Does it make sense to seriously engage with the construction here, or should one better keep away? A credit check of the developer is hardly useful since the company was only registered a month ago.

I hope for some opinions, rough assessments, and maybe suggestions on how to proceed.

Regards

(unfortunately, the real estate market leaves little room for maneuver here).

Even the most exhausted real estate market actually offers enough room to avoid having to play Russian roulette right away.

The planning of the house is carried out by a planning company. The managing director of this company had a bankruptcy with his former construction company in 2010 [...]
The construction phase is then taken over by a developer. The developer is a company that was newly registered in the commercial register at the beginning of February and is run by the brother of the aforementioned managing director.

A developer builds on his land and sells you the house with the land. You have nothing to do with his planning company. Here it is presumably rather a contractor. Even with related managing directors, the companies are independent. Otherwise, why would you "separate" the executing company from the one you make a contract with here, if not to your disadvantage?

A constructioncompany builds on their plot and sells you the house with the land.

Correct, basically. However, he would also have no problem selling the land and then starting with the construction.

Why else should the executing company here be "separated" from the one you make a contract with, other than to your disadvantage?

That's exactly what I'm wondering too. I had explained it to myself with tax benefits for him?!

So you would also rather refrain from building with him, right? Even if he can provide sufficient guarantees?

It is a bit unclear why you want to commit to this company if it already seems suspicious to you. Do you not have a property and they are offering something suitable? If yes, are you sure that it is really their property?

Right, actually. However, he wouldn’t have a problem selling the property here and then starting with the construction.

That’s what I’m wondering too. I had explained it to myself with tax advantages for him?!

So you would also rather refrain from building with him, right? Even if he can present sufficient guarantees?

That has nothing to do with guarantees. Do you want to pay the property transfer tax on your entire financing?

Aside from the property transfer tax, how does it even occur to you to build with him given the preliminary information? I wouldn’t even come up with the idea. Let others be guinea pigs.

I really don’t get it, really don’t! Are you getting a 50% discount or the property for free?

But whatever, not my money, family, or children.

It is a bit unclear why you want to commit to this company if it already seems strange to you.

Don’t you have a plot of land and they offer something suitable? If yes, are you sure it really is their land?

The land belongs to the company, so unfortunately we have to build with them if we want to place our house there.

That has nothing to do with guarantees. Do you want to pay the real estate transfer tax on your entire financing?

Apart from the real estate transfer tax, how does it even occur to you to build with him based on the preliminary information? Let others be guinea pigs.

I don’t get it, really don’t!

That’s normal when building with developers, isn’t it? You pay the real estate transfer tax on the total price. Only if you already own the land beforehand or buy it beforehand, you pay the real estate transfer tax only on the land. Or am I completely misinformed here?

I don’t know exactly where you live. We live here in the Heilbronn region / BW. We have been looking for a property (either existing or new construction) for seven years and you find nothing – at least nothing decent. Either prices that are absurd or wrecks into which you have to invest another 250k to bring them up to standard.

Yes, I agree with you, it’s totally stupid to even consider new construction with just the preliminary information, but I think that shows how desperate people are nowadays when it comes to real estate (certainly not all over Germany, but unfortunately that is the case in our region). But if I were 100% convinced about the construction project, I wouldn’t be asking here. Sometimes you just need a few pointers to be saved from making a mistake, right? I think it’s not wrong to describe the situation here for that purpose.