Determination of purchase price via construction price index

Hello Ulrich,

if you calculate it straightforwardly with

Euro/DM = 1.95583
annual average index increase over the last 15 years: 1.56% (from destatis, economic indicators)
number of years: 21 (2014-1993)

you would arrive at a current purchase price of approximately € 226,500.

The only problem is that this says nothing about whether the property is still worth that much today, so it can only serve as a decision aid for whether to proceed with the purchase at this price or not. The core question ultimately is whether there are other interested parties willing to pay this price. If that is not the case or only very unlikely, the value from the inheritance contract is only conditionally meaningful or has limited usefulness.

Under certain circumstances, however, a (too) high book value may be of tax interest, but you would need to know significantly more about the inheritance situation for that. Probably more than you should disclose here. ;)

Best regards
Dirk Grafe

Hello Dirk,

Thank you very much for the quick calculation, now we have an approximate basis.

It is not me who would have to pay too high a purchase price, but the beneficiary from the inheritance contract would have to pay this excessive amount to me. That's how it is when you enter into binding contracts and are confronted with them after 21 years...

It will now be interesting to see whether he can take legal action against the inheritance contract (revaluation of the property). But that will certainly be decided by a court if necessary.

Best regards Ulrich