Consideration: Heritable Building Right vs. Property Purchase / Renovation

There are only the two new development areas (a total of about 50 plots) that are being talked about here all the time, nothing else! So there are no other plots available in the town. Besides that, I believe (okay, I am sure) that in Eching nothing on the open market would be available for less than 2000-2500 €/sqm. You currently have to look far away for purchase alternatives with prices around 500-900 €/sqm.

There is another advantage that I haven't mentioned. Although we would love to expand sooner rather than later, we don't have to right now. That means if (for whatever reason) the leasehold doesn't work out, we just have to be patient and search a long time for the truly suitable property. We have also contacted various municipalities to ask if new development areas/plots will be coming onto the market.

On the other hand... due to Corona, more and more people are getting the idea to simply move further away from big cities and then do 4 days of home office and one day in the office. That would be bad for us because it would also make these currently cheaper areas more expensive. So waiting too long would also be stupid. No matter what you do, you do it wrong. Unfortunately :/

There are only the two new development areas (a total of about 50 plots) that have been talked about here all the time, nothing else! So there are no other plots available in the town. Apart from that, I believe (ok, I am sure) that on the free market in Eching nothing under €2000-2500/sqm would be available.

Then the hereditary building right is all the more attractive if a possible alternative plot in the desired location would not cost you €420k but maybe twice as much. You have to take that into account for your calculations. I know you are talking about the development areas, but it’s about the comparison between buying and "renting."

: I am always amazed at how different people's perceptions are :)
uh... no, it's not. There simply is no alternative plot in the "desired location". Period! Therefore, it makes no sense to compare a non-existent plot with one that might be available. Sure, and I have done that, I can theoretically compare the prices. What annoys me the most is that the standard land value has increased by 35% in just 2 years (even 74% in the second development area). Yes, that's how it is and I can't change it, but the municipality could in principle adjust it with higher discounts. But they don't want to, and yes... that's how it is and it's no use getting upset about it.

And I also have to correct the "desired location". The place is part of an economic community (Nordallianz München) together with 6 other municipalities. Any of them would in principle be just as good for us. Only they don't put it out to tender, or as a non-local I wouldn't have a chance to buy at discounted conditions at all. And even Allershausen, which is 10 minutes further north on the A9, would actually be great. But there are either no new development areas there or only on the private market at unaffordable prices.

And yes, we have too little equity and yes, also an income problem. Again, with every job change I have increased my income and want/need to continue doing so. The expenses are also constantly increasing. Grow or die! :)

There are only the two new development areas (a total of about 50 plots) that everyone here has been talking about all the time, nothing else! So no other plots are available in the village. Apart from that, I believe (ok, I am sure) that in Eching on the open market nothing would be available for under 2000-2500 €/sqm. You currently have to look far away for purchase alternatives with prices around 500-900 €/sqm.

They just don’t spell it out, or rather, as a non-local I wouldn’t have any chance at all to buy at discounted conditions

Therefore, you have no other choice than to build on leasehold land or not at all. Don’t forget, even 500€/sqm for 400sqm for a semi-detached house is already 200,000€. Plus additional costs. Your budget simply doesn’t allow that.