Consideration: Heritable Building Right vs. Property Purchase / Renovation

To say it again from a neutral perspective, from someone who does not want to make money off you.
Even with a hereditary building right, it will be tight and unfortunately it is simply much more expensive than you think, and especially in this location not an exception.

For comparison, again with us 50km from Munich.
Plot with a little over 300 sqm towel size back then still bought for 250k. Today not possible under 300k anymore.

Then a house with 160 sqm living space plus basement.
We will end up somewhere between 450k and 500k with absolutely everything (so including kitchen, ancillary construction costs, outdoor facilities, but WITHOUT the plot). And that with an extreme amount of own work.

Total costs with us therefore: 700k - 750k.

Now you can leave out our basement and the double garage and deduct 100k for that. Still remains 600k - 650k and not your 500k budget.

Regarding prefab house. We got 2 turnkey offers from well-known prefab house companies in order to have an upper limit for our financial needs.
The offers were around 400k.
In addition, for us, there would be:
Ancillary construction costs 40-50k
Kitchen and furniture: 15k
Prefabricated garage: 25k
Outdoor facilities: 15k
Total 500k. Without! land...

So, you should be glad about the hereditary building right offer and you will probably have to reconsider your expectations as well.
And yes, it frustrates us too about what a small plot and house we get for so much money and effort, but what can you do.
In our case, we still preferred the homeland over 100 sqm more.

How do you come up with 420 T€?? Land reference value = 1,500€ x 280sqm x 0.6 (40% discount by the municipality on the land reference value) = 252 T€.

That is only the municipality’s discount for calculating the ground lease interest. Anyone else (seller) rather applies a markup on the land reference value. And you have to pay this price if you want to buy a property not from the municipality but elsewhere. Or is the land price so much cheaper somewhere else?

Exactly! If I want to sell the house alone after (retiring in) 25 years, I might have this problem. But not if it stands on MY land, which, as prices have increased over decades (and even if it just stays on the same level), is clearly more attractive than a worn-out 25-year-old house (yes... even if it was always nicely renovated, it doesn’t get better!).
And even if the house was just a ruin, the land retains its value!

Then you get the land value minus demolition costs for the property. Is that a better deal? First buying land, financing it expensively (and possibly reducing consumption), or renting land very cheaply.
Your argument comes from your gut feeling, reality looks different.

Thanks, but who is “we”? Everyone here in the forum? Is there a "purchase contract check thread" here?

We = the forum. For example, I do nothing else professionally (and privately) but real estate and financing.

I just have the feeling

Correct. Feeling. You are simply an “amateur”. It’s not bad.

simply a good standard with one or two more expensive gimmicks (floor-to-ceiling windows in the living room, possibly a balcony, underfloor heating, basement, otherwise just plain standard)

That is not a standard.

Where then do the prefab house providers lie when they plan a house according to our specifications (in advance) and then end up at 280–300 T€ with everything?

They do not lie. The house will cost that price.
They just don’t tell you what is “required on-site.” There are enough threads about this in the forum. They also don’t tell you that there are only 12 sockets in the whole house. Or or or.

Why not simply buy a condo with 110sqm or more. That way, you are already on board when it comes to value appreciation. Later, it can always become a house. The advantage would be more comfortable financing and you can sleep well at night. Prices have exploded here as well. For now, we have settled on a condo with a large garden which already costs 490k, though with some extras. Later it will be a house, but we are only 27 and 30.

A condo can also be rented out at any time.

I don't see the leasehold issue entirely uncritically either.

We also had the opportunity in the district of Regensburg 5 years ago, back then the conditions were as follows.

The amount of the ground rent is 2.4% during years 1-7, from year 8 it is 3.1% plus any possible adjustments to the consumer price index and is calculated based on the land prices (€285/m² to €315/m²); adjustment to the consumer price index every 3 years (rises about 1.5% per year).

Land value: approx. €175,000
Example: 600 sqm plot
Years 1-7: approx. €4,500
From year 8: approx. €5,500

In the end, we decided against it because after at the latest 35 years we would have lost money, probably even earlier... depending on the index.
The monthly burden was also too high for us back then for leasehold and house construction, and wage increases at that time would only have covered that to a limited extent.

But with your land prices, it might be an option after all.

We ultimately decided against it, because after at most 35 years we would have been at a loss, probably even earlier... depending on the index.

Five years ago, the interest rate for the bank loan (if you can still get a loan for the land) was similar to the ground rent. So also a fair offer, if there is no adequate, comparable plot for purchase. And I do not accept the calculation that after 35 years you are at a loss. Then you shouldn’t lease cars either. You get a real value in return for the ground lease at a reasonable price. That’s exactly what it is for. Usually cheaper – regarding the monthly costs in € – than the purchase plot. Of course no ownership, that is clear.

The monthly burden was also too high for us back then for ground lease & house construction

The monthly burden for land purchase and house construction is higher than with ground lease. You always have to keep that in mind.

Many have already written here that leasehold is not such a bad choice. If I were in your place, I would also include in my decision how and where I want to live for the next 30-40 years. That is an important point. You can definitely sell the house later. Yes, maybe you did not make a profit with the property or get back 100% of your investment. But the proceeds should still be enough for the last years of your life. And the most important point is: You would have had a nice house for 30-40 years, in a residential area where you feel comfortable. That is much more important than, for example, leaving as much as possible to the heirs.