Ground lease building plot experiences?

If the ground lease payment remains the same, the burden will become relatively cheaper due to inflation.

Speculating on an interest rate turnaround is certainly one possibility, but definitely the least reliable when making a choice. A massive price collapse is unrealistic. Maybe still possible with land but

However, the ground lease payment does not remain the same in absolute terms, only relatively. If wages keep pace with inflation, the share of income for the ground lease will remain the same. Then, when income shrinks with retirement, the share for the leased land will increase accordingly. That should be considered.

I have never understood why people are still convinced that 10% price increases per year are completely normal, but the opposite direction is not, and prices never fall. Of course, prices can fall sharply, quite certainly in the next ten years. Ultimately, it is simple demography. We just had the chart about that in a neighboring thread. And ground lease is special – certainly not a positive feature in a buyer’s market.

I can promise you, any reasonable house on an inherited plot here sells without problems. We had once been interested in one before our build. Unfortunately, it only had just under 40 years of remaining lease term. It was a nice house, but nothing special. He sold it with the remaining lease term in the bidding process for €750K.

As a reminder:

there is nothing under 420,000 euros here ...

We, 28 & 26, have been unsuccessfully searching for a plot of land for several years now .... unfortunately without success.

According to my calculation, it would be 348 euros per month.

Based on a life expectancy of 80 years, that would be 52 years and therefore 217,152 euros. After that, the land still wouldn’t be mine .......

Where is the problem? Do you want a plot of land just for the sake of having it, or do you want to build? Do you want an investment or quality of life through your own house?
We ourselves live on leasehold - we and many others (almost everyone) in the village - hardly have a bad feeling or a problem with leasehold. On the contrary: the house itself will hardly be worth anything after the term ends anyway, unless we properly renovate after 25, 50, and 75 years.

unfortunately, a purchase option is not possible :( even after 99 years have passed.

Oh, you wanted to buy after 99 years? Good joke ;)

In summary: either you search for more years and pay even more, or you give up building a house and remain renters, or you find another disproportionately expensive property, or you accept the offer that is tangible, feasible, and affordable. At least you wouldn’t have to finance the value of the land, and that is, besides the advantage that there is an offer at all that you could take, another plus.

[..] You wouldn't have to finance the value of the land at least, and that is, besides the advantage that it is even an offer you could take, another plus point.

Uh, yes you do - exactly that. He has to "finance" the value of the land at 4% p.a., just to someone else. Maybe an idea with 10% construction interest, but as you already wrote - it's simply "the offer you can't refuse" - or - there just isn't anything better..

He is NOW closing anew - at 4% on the current land value that has been driven up for 5 years. And on top of that, he's nailed down by index linkage for 40 years. You can do that. But the couple here are under 30 - they can also wait..

Historically, there have certainly been years when leasehold is still worthwhile - because the underlying land values were low, and you can enter into contracts with 40-50 years remaining. And you are clearly right - after 70-80 years the house has no value anymore, for the potential heirs or for sale, only the location/the land itself is interesting.

Uh, yes - exactly that is what he has to do. He has to "finance" the value of the property at 4% p.a.

For me, lease is still rent, in the sense that I am financing something. And basically, it is also just rent. You don't have to interpret anything into it just because you constantly calculate numbers and build houses mostly soberly or only as an investment. It's about an own house and not an investment that you build for others.

But the couple here is under 30 - they can wait..

You are right there... but the market doesn't offer much for any age groups. In the meantime, I looked around here at what's on offer: there is virtually nothing, except a few remaining stocks, half of which cost over a million - insanely expensive for our region! I would advise everyone to secure their assets, no matter how!

See my post above. Building from the 80s, renovated in early 2010. About 180 sqm, windows, heating, network. So standard. Purchase price was €650K. We wanted to buy but wanted a guarantee for the lease extension. He couldn't give that. We offered to buy completely, but he couldn't either because the contract was fixed. When he realized the interest was so high, he switched to a bidding procedure. The purchase price was finally €750K. Where exactly is the depreciation and the unsellability with leasehold? Edit again: sure, it's all a matter of location and demand. But there are plenty of areas where it works exactly like this.