Consideration: Heritable Building Right vs. Property Purchase / Renovation

Someone else would have said it more clearly (I'm not going to read that again, that's up to you)
A whole range of options or advantages are presented to you, and you only see the small slight disadvantage. You overlook everything else.
It is just like this: if someone rolls out the red carpet for you, holds out their hand to walk with you, or offers different paths, and the other person stubbornly refuses to step on that carpet, is afraid of the holding hand, or refuses to take a path, then nothing can be done for them anymore. Some people just never get anywhere. This "would have, could have" bicycle chain seems to be some kind of sign as well.
You don't want to leave your comfort zone, but for 500,000 a home of your own... that's not how it works.
There is always a 'but' with you.
Or how do you see it?

I just have the feeling no matter what we do, it's a mistake. But doing nothing would also be a mistake and then there wouldn't be a child No. 2 either.

We can write here for years - but that won't change the situation.

I believe there was also a misunderstanding regarding the municipality's award procedure in general. You only "apply" for one parcel/plot of land; whether you actually get it depends on how many points you receive in the local resident model. These points are awarded based on the duration of municipality membership, working in the municipality, relatives, children with disabilities, social engagement, household income, and a few other factors. We do consider ourselves to have fairly good chances, but have no idea how many people will apply and how well they will score. In short, all the considerations about whether or not to choose a hereditary building right could be pointless if we don't get the contract anyway.

I really have a déjà vu from the discussion in 2019... the tenor was somehow similar back then.

Or is the land price much cheaper somewhere else?

Uh, yeah?! But only further out towards Regensburg, Deggendorf, Cham, etc., or in the "vacuum" space in between aka the middle of nowhere. Of course, where no one wants to go because there’s hardly anything there and job prospects are slim, prices are lower than in the metropolitan areas and their commuter belts.

and you only see the small minor disadvantage. You overlook everything else.

That’s not true at all! 1. Many others have also expressed their concerns about the hereditary building right, and 2. I also see it as an option, otherwise I wouldn’t have started this thread if I had different plans from the start.

You don’t want to leave your comfort zone, but for 500,000 a home... it doesn’t work like that.

It’s clear to me that you can’t get anything on the open market around Munich with 500k (including the 50-70 km radius), that was never questioned. The question is which bitter pill you swallow and can live with better. Maybe I just weigh and evaluate the pros and cons differently than you and some others. That’s okay. And well... pressing the prefab house companies further and really getting the final price in advance is probably also an issue. (Does every additional socket cost 10,000 euros or why is that constantly mentioned??) In a pinch, there are distributors ;)

It is also OK to evaluate things differently. But then you should eventually make your peace with it and that's that.

Here in new development areas, there are the following options: points system, highest bid, lottery procedure, highest bid with points so that you are even allowed to bid. The supply here is simply significantly higher than the demand. At most, we would have had a chance with the lottery procedure. Now you can agonize forever or look for alternatives :) We chose the alternative

§63 Abs. 3 BHO

Exactly, it states that exceptions are permissible. ==> The city council must want it. Moreover, even offers at the standard land value today are considered favorable, which would correspond to the cited "full value." I stick to my point: Heritable building rights are a way to acquire quasi ownership rights with a low monthly burden. That the municipality also provides for 20 years of self-use in this case further suggests to me that they want to do something for the less financially well-off families.