A Ticoncept Group Project – Step by Step

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Project Search

1. Finding attractive real estate locations in Berlin

Where are areas with potential and promise in Berlin?
Which areas in Berlin will develop positively?
Where will more jobs be created in the future?
In which districts is there an increased demand for living space, for condominiums?

As soon as these areas have been found, possible projects are searched for in these neighborhoods!

2. Next we conduct feasibility studies and explore the possibilities in these areas according to the following basic criteria:

What is the infrastructure like, the micro-location?
How is the site connected to the public transport system?
What kind of apartment sizes, floor plans and features are currently in demand?
What do the authorities and banks say to the planned concept?
Does the purchase price allow for a customer price development, which reflects the current market situation?
How high will the calculated construction costs be?

Since about 20 to 30% of the apartments are sold to investors, we check the following issues as well:

What is the demand for rental apartments in the area? Where are there vacancies and why?
What levels of rent are realistic?

In renovation projects for older buildings with existing tenants, we also check the following issues:

What is the current tenant structure of the object?
Are there any "problem cases"? How can they be solved in both a socially responsible way as well as in the best interest of the project in terms of a trouble-free realization of the project?
Is there a temporary housing possibility nearby for the construction phase?

We discuss each project with the respective cooperating financial institutions to obtain basic prior financial commitment for the project!

This means for our buyers (owner-occupiers and investors):

Even before we purchase a project, we’ve examined all important investment criteria for our future real estate buyers! We only buy projects (properties or historical buildings) that are located in areas, which are sufficiently in demand, and for which we have a feasible concept!

Project Development

After buying the new project, studies are conducted on the possibilities of new buildings on the property or the conversion and renovation of existing structures. Together with the feasibility studies, the results of these studies form the basis for the project development.

This includes e.g. the following activities:

In existing older buildings, detailed measurements of the buildings form the basis for planning
Where necessary, new property is re-measured
The architect is given specifications for the design based on the studies that have been conducted and area research (size of apartments, floor plans and features)
Continued communication with the authorities in charge (Department of Construction Supervision, Department for Housing and Redevelopment or the Department for the Preservation of Historical Buildings, Parks Commission, etc.) on the feasibility of the planning
After we have received general approval from the authorities, the architect compiles all the necessary documents and blueprints for the written confirmation of self-containment (this is special permit required by German law stating that a housing unit is sufficiently acoustically, spatially, etc. self-contained) and the building permit.

In older buildings with existing tenants:

We present the project to the tenants.
Arrangements and individual agreements are made
We clarify which tenants want to use their pre-emption right
If necessary, original tenants are moved to other apartments during the extensive renovation period.

Notary

Together with the notary, we work out the declaration of partition, the base document and a model contract of purchase.
The property manager supports us in compiling the community and house rules, which are an essential part of the declaration of partition.
After the notarization of the declaration of partition, the partitioning of the original land register sheet into individual subdivision apartment register sheets for the respective condominiums is applied for and executed by the land registry office. This is a basic requirement to ensure the subsequent security of future buyers and their supporting financial institutions.

Marketing Plan

We work out a detailed marketing plan that takes into account prior experiences of the project developers, the project manager and our in-house salespeople.
Implementation of the marketing plan: Compilation of visual material, a brochure, web presence and further promotional material.
If possible a model apartment is created to be able to show the construction standard that is being planned.

Construction Planning

Based on the detailed specifications of the project and the approved blueprints, construction costs and ancillary construction costs are calculated in more detail.

Securing Financing for the Property Development

Based on the now existing detailed planning, financing for the project is drawn up in cooperation with our finance partners and the necessary financial means are allocated.

Financing for Buyers

The project is presented to our cooperating financial institutions. Individual finance strategies are negotiated for the buyers. All requirements for the sales launch have been met. Project planning is complete!

All requirements for the sales launch have been met. Project planning is complete!
This means for our buyers: They will be buying a well-thought-through, implementable concept!
The buyers are guaranteed a high degree of security!

Sales and Construction Planning

Sales

Further implementation of individual items from the marketing plan
Announcement of the project in the media (advertising campaign, advertisements in newspapers, real estate internet portals, etc.)
For large-scale projects, we also prepare and hold a press conference in which the project is presented
Our sales partners are supplied with brochures, email brochures, important information about the property and are invited to a property presentation.
A model apartment and a model house are opened to the public. Our sales partners and the buyers can convince themselves first-hand of the planned construction standards.
The first sales agreements are negotiated. Depending on the project, contruction begins, when completed sales have reached a level of 30 to 50%.

Construction Planning

Construction is planned in detail, various offers are examined, building contracts are negotiated with companies.
Special buyer requests are incorporated into the detailed blueprints (1:50 drawings) and are taken into consideration and integrated into the building progress.
A detailed construction time schedule is drawn up.
The property or the building is prepared for the construction work (cleared, demolished, where necessary: soil exchange, foundation work, etc.)

Construction Phase

During the construction phase:

The time schedule is implemented, verified and adjusted to meet the respective circumstances.
The individual purchase price installments are called up in 7 installments according to the German brokers' and commercial developers' ordinance. The purchase price installments are listed in detail in the purchase contracts.
Important! The developer advances the costs. Only when construction is completed as agreed, do we retrieve the purchase price installments! The buyer or an expert appointed by him (construction engineer or architect) examines the quality of the work and only gives clearance for each purchase price installment to be transferred if there are no faults to be corrected. This way, our buyers have a maximum of security!
If the buyer wishes, he can view the samples and select all materials (electronics, tiles, doors, floors, etc.) together with our construction supervisor. If necessary, individual experts can be asked to make a recommendation based on their expertise.
Appointments to view the construction site can be made any time during the construction period.

Occupation Phase and Post-Production

Final inspection of commonhold property (condominiums) and shared property (grounds, façade, cables, etc.) are separate from one another. Written invitations are issued 2 to 3 weeks prior to this date. Buyers are welcome to ask an expert of their own choosing to join them for the final inspection.
Completion of the commonhold property is carried out after the buyer has given his final approval for the apartment. This is the point in time at which the so-called ‘transfer of title concerning benefits and burdens’ takes place, meaning: The buyer is from now on responsible for the payment of maintenance fees (running costs + property management + maintenance reserve fund), but can also profit from possible rental income.
3 to 4 months after approval of commonhold property and after all buyers & tenants have moved in, final completion of the remaining portions (hallways, entrances, grounds, etc.) and approval of the shared property takes place. Approval is carried out by an authorized expert, who compiles a detailed written report of approval.
If faults are detected during approval, they will be promptly corrected. The final installment of 3,5% of the purchase price is only required after complete fault-free approval. The first owners’ meeting is held during the first months after the date of approval. The property manager is introduced and the most important project-related matters discussed.

Service for Our Investors

If there are no existing tenants, we offer buyers upon request the service of finding tenants before completion to guarantee the shortest possible period between transfer of titles and receipt of rental income.
If desired, the property manager can also manage your private property (apartment) in addition to taking care of the body corporate (= residential complex).
If you wish to make use of our “worry-free” property management package – of both body corporate and separate property management – our property manager will take care of all tenant related issues for you. As owner, you will simply receive your net rent from the management and won’t be “bothered” by “dripping water taps” over the weekend!