Consideration: Heritable Building Right vs. Property Purchase / Renovation

  • Erstellt am 2021-02-18 15:55:36

11ant

2021-02-27 11:33:10
  • #1

Oh, come on, stop fueling the OP's concerns with tendentious farmer's calculations. In 99 years, you already have great-great-grandchildren, by then inheritance tax has hit three times. And why should I care if someone else (the leasehold grantor) also benefits from a good deal for me? – after all, that is the core of an (ethically) good business, that one's advantage is not another's disadvantage, so what's with the jealousy?!
 

motorradsilke

2021-02-27 14:30:24
  • #2


The objective reason is actually quite easy to find:

After 40 years, he has paid €140,000 for the leasehold, which is gone, of which he has nothing left. If he had paid the same amount for a purchase property in the same period, this money would still be available to him because a higher purchase price could be achieved upon sale.
Maybe one does not live in the house until death, but wants to downsize, move to an apartment, a retirement home, etc. Then it’s quite nice if one has saved this sum oneself.

If it is not otherwise possible, it is certainly an opportunity. But something great is something else.
 

nordanney

2021-02-27 15:23:05
  • #3
You are going in circles. He has to pay almost half a million at the beginning, which he simply does not have. Everything else are commendable but unnecessary considerations.
 

WilderSueden

2021-02-27 15:39:56
  • #4
He bought the land and pays 1% interest on 420,000 €, which is 4,200 € per year. That is above the leasehold rent. Since the additional loan amount is only repaid "after" the house, it remains more expensive than the lease payment for the next 25 years. And with the loan-to-value ratio and the required term, 1% is still very optimistic. We are rather talking about 1.5% and up, and thus double the leasehold rent. The argument might hold for a plot with 4% leasehold (which is then repaid with 3%) but when the leasehold rent is below the interest rates for the land loan, the 3-4 decades look very different.
 

ypg

2021-02-27 18:28:48
  • #5
You can live very well NOW with the “saved” money and not only then when it’s no longer possible to make big physical leaps.. What’s the use if you have to live on a shoestring for the next 30 years, then sell in order to have a nice retirement? Then rather less repayment, some leasehold rent, overall less, and after 30 years sell the house, then live well from this disposal as well.
 

motorradsilke

2021-02-27 18:57:33
  • #6

If that is really the case in the specific situation, you are right.
If you are at the age where you expect to sell after 30 years. If you are around 30 and expect to sell only in 40 or 50 years and then find it difficult to find a buyer because the remaining leasehold period is not sufficient for the buyer.
It is like everything depends on the specific situation.
 

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