Beware Of Building Lots On Former Industrial sites

Germany is experiencing a major structural change, which is also leaving its mark on the real estate markets. Above all, there is a shift to the cities: not only the workforce, but also the companies are moving. As a result, there is an increasing number of commercial sites that are cheap to have – even private individuals are interested in the land to buy cheap and to build homes.

Prospective buyers should

buyer

However, exercise great caution, since such projects often carry considerably greater financial risks than might initially be expected. Especially contaminated sites, which are located on and in the soil, represent a serious danger. If they are not discovered, people may be slowly poisoned. If discovered in good time, it may already be too late: it requires a costly renovation that many private owners can not afford.

It should be noted that many prospective buyers are downright blue-eyed, for example by not asking about the results of soil surveys. Often such investigations are not carried out at all, it is in the interest of the later owners to do it themselves. There is a good reason for the sellers to get out of this: If an investigation turns out to be negative, this would considerably reduce the selling price, or a lot of money would have to be invested in the refurbishment.

 

A particularly high risk private buyers enter

A particularly high risk private buyers enter

If they are interested in objects from foreclosures. Here, above all, the chance is in the foreground to acquire the object very cheap. Many interested parties focus so much on the possible cost advantage that they do not even think about the topic of contaminated sites. But especially here the risk is very high, especially if it is pointed out that the new owner is obliged to carry out an analysis. Then one has to ask why this obligation exists – if the investigation led to a positive result, the creditor would certainly have had it done long ago.

 

Leave a Reply