Hello everyone,
not far from Oppenheim in RLP there is an interesting project with several semi-detached houses and terraced houses currently under construction.
We are looking around, there is an interesting mid-terrace house for approx. 432,000 EUR, this including all costs (except of course the upgrade) even with floor coverings, painting work, outdoor facilities etc. etc.
Now where doubts arise:
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 current times when even the big ones are going bankrupt, the question arises how high, relatively speaking, the risk would be here or whether, besides the usual steps that are taken anyway (credit check, review of construction service description and contract with lawyer, building surveyor, later warranty bond), anything else can be done to minimize the risk or to better assess the company? Of course, there is no 100% protection. A completion bond is NOT offered by the way, 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 approx. 185,000 EUR are for the land share according to WEG and project development costs (different contractual partner) and the rest with the general contractor for the actual house construction. I am not sure whether this amount should be considered suspiciously low – for a KFW40 house with photovoltaics, 148 m2, 2 parking spaces, all costs included (also ancillary building costs, house connection costs, etc., etc.). What do you estimate? On the internet, as well as here, one reads of m2 prices that are significantly higher than what adds up here. On the other hand, there are other larger companies offering terraced houses in approximately the same cost range...
Thanks!