Schlaumeier86
2024-09-19 14:17:12
- #1
Hello everyone,
not far from Oppenheim in RLP there is an interesting project currently under construction with several semi-detached houses and terraced houses. We are looking into it, there is an interesting mid-terrace house for about 432,000 EUR, this including all costs (except of course the Aufmusterung) even with floor coverings, painting work, outdoor facilities, etc. etc.
Now where there are doubts:
1. The general contractor is a small company (feels like a one-man show), founded in 2023 with the usual 25,000 EUR capital. In the current times when even the big ones are going bankrupt, the question arises how high, relatively speaking, the risk would be here or whether, in addition to the usual steps that are taken anyway (credit check, review of the construction performance specification and contract with a lawyer, building inspector, later warranty bond), something else can be done to minimize the risk or to better assess the company? Obviously, there is no 100% protection. A completion bond is BTW not offered, they refer to the usual security mechanisms (5% of the first installment withheld, payment in installments after work is done). Is this suspicious?
2. Price: 432,000 EUR, of which about 185,000 EUR are allocated to the land share according to WEG and project development costs (another contractual partner) and the rest with the general contractor for the actual house construction. I am not sure if this amount should be considered suspiciously low – for a KFW40 house with photovoltaics, 148m2, 2 parking spaces, all costs included (also ancillary construction costs, house connection costs, etc., etc.). What do you estimate? On the internet, as well as here, one reads of m2 prices that are clearly higher than what adds up here. On the other hand, there are other larger companies offering terraced houses at roughly a similar cost range...
Thank you!
not far from Oppenheim in RLP there is an interesting project currently under construction with several semi-detached houses and terraced houses. We are looking into it, there is an interesting mid-terrace house for about 432,000 EUR, this including all costs (except of course the Aufmusterung) even with floor coverings, painting work, outdoor facilities, etc. etc.
Now where there are doubts:
1. The general contractor is a small company (feels like a one-man show), founded in 2023 with the usual 25,000 EUR capital. In the current times when even the big ones are going bankrupt, the question arises how high, relatively speaking, the risk would be here or whether, in addition to the usual steps that are taken anyway (credit check, review of the construction performance specification and contract with a lawyer, building inspector, later warranty bond), something else can be done to minimize the risk or to better assess the company? Obviously, there is no 100% protection. A completion bond is BTW not offered, they refer to the usual security mechanisms (5% of the first installment withheld, payment in installments after work is done). Is this suspicious?
2. Price: 432,000 EUR, of which about 185,000 EUR are allocated to the land share according to WEG and project development costs (another contractual partner) and the rest with the general contractor for the actual house construction. I am not sure if this amount should be considered suspiciously low – for a KFW40 house with photovoltaics, 148m2, 2 parking spaces, all costs included (also ancillary construction costs, house connection costs, etc., etc.). What do you estimate? On the internet, as well as here, one reads of m2 prices that are clearly higher than what adds up here. On the other hand, there are other larger companies offering terraced houses at roughly a similar cost range...
Thank you!