Construction costs are currently skyrocketing

Back to the church You mean leasehold... you just pay rent for, say, 100 years and are not the owner of the land. That used to be quite common here, for example, our bank immediately said they wouldn't do it. You then buy a house on credit but don't own the land underneath. I think there were even problems (not for you) when the lease expires and is not extended, then you can demand demolition from the heirs.

No, it's not that bad. A (dynamically determined in the notary contract) amount must be paid. Also, 100 years is already quite a long time. I currently have such a leasehold property but with the prospect of buying it in about 8 years. But honestly, I wouldn't mind, maybe even prefer to continue paying only €180 ground rent instead of financing €120K. I don't have to inherit anything, I've taken good care of myself during my lifetime... ;). It's true that not every bank finances a building on it, at least not if the term has already started long ago. I would inform myself about how it is to build a house on leasehold and then maybe sell it after xx years but with a granted right of residence. And whether such a combination is worthwhile for you, I don't know. We don't know how old you are, and many other infos are missing to try calculation examples.

We were also offered a leasehold property like this 2 years ago. It is clear that with interest rates around 1%, a lease rate of 2% was not financially attractive, even if we ignore the reversion for a moment. The whole thing would also have been linked to income development in Germany. But that was only half the story. The church also wanted €30,000 from us for development costs, for a plot value of about €60,000 (developed). In that case, we would have actually paid double the lease. I am glad that we found our current property in time. Basically, the lessor also wants to make money, and more than they would get if they sold the property and put the money in the bank. So this is not a savings model.

If you want to cash in on the house in old age, it is best to sell it under the condition that you may continue to live there as a tenant at a market rent. I would refrain from partial sales, etc., these companies combine the disadvantages of both worlds for you. You are a tenant for half the house but still responsible for the maintenance of the whole house. Since half the house is already sold, you can no longer simply sell the house to normal buyers either. On top of that, the high fees.

Something about the current market situation here with us. New build apartments in 2 multi-family houses by the developer in a small village with 6,000 inhabitants, which will be completed by February 23, are now coming onto the offer procedure through the developer. That means the minimum bid for a 93 m2 new build apartment is 199,000 €. The original price was 340,000 €. It has been listed on the internet for over a year for that price. Now anyone can bid (through the real estate agent) and if they know what others have bid, they can raise their offer again. I consider that fair. But whether many would bid in the current situation, I would doubt. But the example shows the future development in the construction industry. A price of -140,000 € less (as minimum bid) is already incredibly low. But the developer still hasn’t sold over 1/3 of the apartments. You could now make a good deal (hoping the developer does not go bankrupt, as the entire outdoor area is not yet finished). So maybe not such a good idea after all.

Something about the current market situation here with us. New apartments in 2 multi-family houses from the developer in a small village with 6 thousand inhabitants, which will be completed by February 23, are now coming up for auction through the developer. This means the minimum bid for a 93 m2 new apartment is €199,000. The original price was €340,000. It has been listed on the internet for over a year now. Now anyone can bid (through the real estate agent) and if they know what others have bid, they can bid again. I think that's fair. But whether many will bid in the current situation, I would doubt. But the example shows the future development in the construction industry. A price of €140,000 less (as minimum bid) is already incredibly low. But the developer still hasn't sold over a third of the apartments. You could get a good bargain now (hoping the developer doesn't go bankrupt, since the entire outdoor area is not finished yet). So maybe not such a good idea after all.

Or maybe this is an indication of the (formerly) high profit margin of the company.

I assume that the developer also does not expect a new apartment to sell for just over 2000€/sqm. It’s like on eBay. Once hooked by the low price, it starts.

Probably yes. But it is difficult to assess how current the purchasing mood of Germans is for new buildings. A discount of maybe €10,000, like with Helma Wohnungsbau, will probably not bring a big demand (they cover 50% of the property transfer tax). However, it shows how difficult the situation currently is and that companies need something like this. Helma even has the promotion for all housing construction projects.