Buying New Construction (Bauträger): Payment Schedule and Security
Buying off-plan means paying in installments. Learn about the 'MaBV' regulation that protects your money if the developer goes bankrupt before finishing the house.
InvestBud Team
Investment Analysts
Buying a property that hasn't been built yet (off-plan) is popular because you get a modern, energy-efficient home tailored to your taste. However, you don't pay the purchase price all at once. Instead, you pay according to the progress of construction, regulated by the 'Makler- und Bauträgerverordnung' (MaBV).
1. The 7 Payment Installments
Under German law, the developer can only ask for money when specific milestones are reached. For example: 30% after the groundworks began, 28% after the structural shell (Rohbau) is finished, and so on. You retain the final 5% until the property is fully handed over without defects.
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2. Insolvency Protection
The biggest risk is the developer going bust. Therefore, the MaBV usually requires the developer to pay effectively for a guarantee or insurance. Never transfer money directly to a developer's private account without a notary's clearance.
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InvestBud Team
Our team of investment analysts brings you data-driven insights on the German real estate market. We combine financial expertise with local market knowledge to help you make smarter investment decisions.
Test this investment idea on your own address
Pick a location and enter the purchase price. We'll prepare rental yield, cash flow, tax impact, and the cost breakdown as a private report.
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