Sorry for not getting back to you sooner, but thanks already for the numerous comments. You can only learn from it.
You can do sports anywhere. Meet acquaintances more intensively rather than more often and superficially.
?? How do you come to the conclusion that a meeting with family would be superficial just because you’re there briefly?
What about ownership?
We have a friend/acquaintance who has already purchased and renovated several tenement buildings. He finds that great, but our ideas about what is appealing probably differ. He is more the "vintage car always maintained" type, and I/we are more like modern new cars or cheap young used cars. (You can just explain everything better with cars :D )
Normal term would be 99 years – so 2-5 usage periods. Here it is already significantly shortened. Assuming you live in it for 35-40 years. It will get tricky for the buyer afterwards, so it will be about a new contract, with worse conditions.
That would rather be a counter-argument to the hereditary building right, wouldn’t it? (I’m not looking for a flaw, I just want to understand the arguments)
The alternative to hereditary lease in this case is definitely not a house on your own land but at best a condominium. The financial situation does not allow more.
No way! I don’t want something like “I live on the ground floor and should pay proportional €5000 for the renovated elevator that you never even use on the ground floor”! I’d rather move further away.
With hereditary lease I can roughly imagine the following: house with some own effort for about €350,000 including incidental building costs and installment of about €1100. Then another €400 per month for the hereditary lease. That’s a bit tight since the OP is already 42 and the whole thing should be paid off by retirement in 25 years. For the low equity at that age there should also be a good explanation so that the concept works financially.
Good explanation to whom? We have spoken to four financiers so far and this was never a problem. Actually, I don’t want to stay with my current salary until retirement. It should and must improve significantly. I do have that expectation! Now I’m waiting for Corona to settle and (hopefully the standing financing), then I’ll look for a new job. I have wanted to get away for over 1.5 years!
But for 280 sqm you don’t have to pay €420k plus additional costs to then live in a caravan on it. If you move out after 20 years, you have only paid €70k for a €420k plot. Good business for you.
How do you get €420k?? Land value = €1,500 x 280 sqm x 0.6 (40% deduction by the municipality on the land value) = €252k.
Like with full ownership as well. There is no difference. That depends more on the development plan and building regulations than on the hereditary lease.
Okay, I hadn’t really considered that. Accordingly, no plus point for buying.
What happens if you have a house in full ownership that isn’t worth much? Does anyone want that? No.
Exactly! If I want to sell the house alone after (by retirement) 25 years, I might have this problem. But not if it stands on MY land, which—if prices continue to rise as they have for decades (and even if they just stay at the current level)—is much more attractive than a worn-out 25-year-old house (yes... even if it was always well maintained, it just doesn’t get better!). And even if the house was just a ruin, the land retains its value!
P.S. Actually holding the contract in hands and reading it will help too. We can gladly support you.
Thanks, but who is we? Everyone here in the forum? Is there a "purchase contract check thread" here?
I understand you because for me hereditary building right would also be second choice, but better second choice than nothing.
I just have the feeling that we can only choose between a bad and an even worse option, although we don’t know which is which. :(
I have (and also had in your last thread) the impression that you are simply fundamentally frustrated because you’re not getting what you actually want
No kidding :P Yes please, how else could one be happily beaming in such a situation? The fact is, we want to enlarge our living space, not get totally financially overextended, and ideally get a good deal where in old age you are not the fool left holding the bag.
When you live in the house, you don’t even notice that it is not private land but leased land; the house is your property.
That’s a nice thought, but I can’t just switch off the knowledge I have ;) It just leaves the feeling that you are at best tolerated in exchange for money, and have built your own house on “air.”
Sounds like you are quite undemanding. But exactly those are the sought-after locations! Big city within striking distance. But in your own town all offers you need. Without the hustle and bustle of the big city.
Well, not undemanding, rather spoiled for sure. I grew up in the neighboring community, now live in another suburb with all the advantages you rightly mentioned. Honestly, who wants to live downtown?? :D Sure, it would hurt to move to the sticks, which, frankly, isn’t an option.
With the estimated €300,000 for the prefabricated house you won’t get there. Then there are additional purchase costs for the land. Maybe demolition costs. Plus easily €50,000 incidental building costs. You’ll quickly end up at €700,000.
I don’t understand that either! Where are the prefab house providers lying if they plan a house to our specifications (in advance) and then everything comes to €280-300k? But even here opinions on what a prefab house costs vary widely. I don’t want a dump nor a palace with golden faucets, just a good standard with one or two more expensive gimmicks (floor-to-ceiling windows in the living room, possibly a balcony, underfloor heating, cellar, otherwise plain standard).
Ah, stupid houses! In the end, we’ll get a houseboat, cruise the Danube daily, and work from home :D