Financing Feasibility Single-Family Home Purchase

The owner would like to travel with the money. Why do you think it's a rip-off if the father contributes €50,000 as a partner? After all, he has the debts if something goes wrong?

Top investment for him. After all, he secured half of the property with relatively little money. He can register in second place in the land registry with the €50k. Being a co-owner means he has a say in everything, can come and go whenever he wants, can mow the lawn or not, and so on and so forth. I would distance myself from that very quickly. Also from buying the house itself. Especially from this house.

I see it the same way. A potential landlord does not buy a house with a right of residence. An owner-occupier would first have to issue a termination for own use against you, but there would still be the issue of the hereditary building right and a lifelong right of residence.

The current owner can make use of the special termination right according to paragraph 573 a of the Building Code and then sell an "empty" apartment. This should be kept in mind!

I wouldn't want to buy it like that either. Far too many disadvantages and pitfalls.

But nevertheless, it's time for a counteroffer!

How about €168,000, which corresponds to about 20 annual cold rents? Or even less, because the house is otherwise extremely difficult to impossible to sell. Even for €100,000 and a right of residence, one can travel well and for a long time. How is the seller's health or life expectancy?

For the evaluation it would be important (after we know the age)
- Market value of the house. As a first approximation, the year of construction, size (total) and equipment (basic/medium/high) are sufficient --> Valuation according to the cost approach
- Rent of a comparable apartment to that of the existing owner
--> Deduction due to the expected statistical remaining useful life
Then the "value" can be roughly estimated. Of course, details such as how the additional costs are divided, etc., come into play.

Very roughly, I assume that the residential right has a value of about €150,000 (25 years, €500 rent). That means the building (without land) should have a value of €460,000 (yes, I know, with leasehold land there can also be a land value in popular locations). Let's assume a useful life of 70 years for a single-family house, 30 years of which have passed, then the house would have standard construction costs (2021) of €805,000. With the NHK 2010, this results in €877/m2 gross floor area with medium equipment (so area including basement and full attic (no consideration of sloped ceilings)). NHK 2020 would be (130%) therefore €1140, meaning there should be a gross floor area of about 700m2, i.e. 230m2 per floor (basement/ground floor/upper floor).

At first glance, the €310,000 is somewhat highly estimated if not located in or around Munich/Frankfurt/Hamburg/...

At first glance, the 310K€ is somewhat overestimated, unless located in or around Munich/Frankfurt/Hamburg/...

With a good €6 per sqm rent, which the OP pays, the property is more likely in the sticks ;) compared to big cities.

In Google, a method for determining the market value of a hereditary building right on a single-family house plot can also be found. For the calculation, the following are needed:
- standard land value
- size of the plot
- remaining term of the hereditary building right contract
- annually achievable hereditary building leasehold rent
- property interest rate of the unencumbered plot (can be assumed to be 3%)