Construction on someone else's property with subsequent purchase

- Could there be problems if the lease is "very low"?

Only for the lessor

Why could the lessor have problems if he leases or rents out for a "very low lease"? Can I, as a lessor/landlord, not set the price myself, knowing full well that the price is very low? Are there regulations regarding the approximate amount the lease/rent must be?

Regards

Raiweired

Why can the lessor get into trouble if he leases or rents out at a "very low rent"?

Because it can then happen that the tax office no longer accepts advertising costs.

As a lessor/landlord, can't I set the price myself, knowing that the price is very low? Are there regulations regarding the range in which the rent/lease must be?

You can set whatever you want. But then you have to live with the consequences. The legislator has reduced the previous 66 percent limit (of the comparative rent) to 50 percent from the year 2021. However, with a special regulation. If the rent is less than 66 percent, but more than 50 percent of the local level, the following applies: Advertising costs will only not be reduced if a so-called total surplus forecast for the next 30 years results in a positive outcome. For a pure plot of land, it is not so painful. For a property, it is, if the advertising costs are suddenly no longer recognized as desired.

You can set whatever you want. But then you have to live with the consequences. The legislator has reduced the previous 66 percent limit (of the comparable rent) to 50 percent starting in 2021. However, with a special regulation. If the rent is less than 66 percent but more than 50 percent of the local level, the advertising costs will only not be reduced if a so-called total surplus forecast for the next 30 years leads to a positive result.

For a pure plot of land it is not so painful. For a property, however, it is, if the advertising costs are suddenly no longer recognized as desired.

Thank you for your answer. A few minutes ago I spoke with the municipality and asked about a rent index or comparable rent. Answer > we don't have something like that. I want to rent a new single-family house to my ex-partner at, let's say, 70% of the comparable rent to get the depreciation (AfA). If I now piece together a comparable rent myself and calculate 70% of that as rent, I can be wrong if the tax office assumes another comparable rent. How can one get the realistic value of a comparable rent, can you ask the tax office about that?

Alternatively, the house was neither inhabited nor rented out, right? Owner-occupation also applies, for example, to weekend or holiday homes that are "used" by the owner themselves. As soon as the garden was "owner-used" for recreation, it is probably not mandatory that the house was also inhabited.

Is that so? We have assumed until now that such a property must actually be "inhabited" to obtain this status. Is there a legal trick or something else? Any source references? (The property has indeed been cleared over the past few years and at least partially used as a garden.)

Regarding the motivation for not selling before the end of the speculation period: The owner (we have known each other for a longer time) is somewhat older and I believe that she simply does not want to give the state any (from her point of view) unnecessary money. And the idea regarding the property as well as the possibly feasible lease came from her, since we have been searching unsuccessfully for a long time. The same applies to the price.

We will gather some more information about the property (especially concerning development; she herself did not know exactly offhand). Electricity and water are 100% connected, only with wastewater we are not quite sure. Then we will have another conversation with her regarding a direct sale with possibilities for a refund of the speculation tax.

Then you can only hope that there are no heirs who could contest any possible agreements. That would be too risky for me.

If I now put together a comparable rent myself and calculate 70% of it as rent, I can be off if the tax office assumes a different comparable rent. How do you get to the realistic value of a comparable rent, can you ask the tax office about that?

I don't think asking the tax office is a good idea. I always argue with the rent index or Immo....scout.... listings. So far without further inquiries. Comparable rent means gross rent, by the way. Just for your information.