Small GU in Rhineland-Palatinate for terraced house too risky?

  • Erstellt am 2024-09-19 14:17:12

nordanney

2024-09-19 16:05:23
  • #1

Because the money is earned with the land sale / the costs stated in the purchase contract. If things don’t go smoothly with the construction, the general contractor suddenly declares insolvency but has already earned their money.

They do "real" property development business.
 

11ant

2024-09-19 16:15:17
  • #2
So what now, Deutsche Reihenhaus or small fry? Almost 1700 euros construction cost per square meter EH40 including additional incidental costs and overhead. The project would basically be insolvent as soon as half of the units were sold.
 

nordanney

2024-09-19 16:18:23
  • #3

The land value for the townhouse is from €90k (from about 300 sqm of land area). So about half as high as with you – €90k for 145 sqm of living space then means €620/sqm higher (plausible) construction costs.
 

Schlaumeier86

2024-09-19 16:24:26
  • #4
OK, so one can conclude that the general contractor/land seller wants to, let’s say, secure himself by proportionally setting a higher value for the land in the contract (the standard land value at the construction site is €220/m2). Well, that’s not exactly a plus point regarding the risk of default with the general contractor.
 

nordanney

2024-09-19 16:33:23
  • #5
It is a way to recover excessively high land purchase costs (for the seller/project developer) from the past now. Regarding this division and the called construction costs, I would actually not even consider the project. Because you buy the land first, if I understand you correctly. And then the money is gone. The only conceivable way: a linked contract where both prices (land/house) are only paid after completion.
 

Volvic24

2024-10-27 12:46:37
  • #6


How did it all turn out? Did you buy?
 

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