Ground lease building plot experiences?

I heard and read all that five years ago.

Maybe look back 5 or better 10 years to 2015.. also very insightful. Otherwise you sound more like the Bitcoin guys - there too people are fully convinced that there will always be someone born dumb enough to keep buying at the highest prices - to the moon. Until the problem becomes so big that regulation comes. Because the question remains - where should the real money come from? And the topic is now a front-page issue, no longer a niche topic like four years ago during the election campaign. It’s not only metropolitan areas affected, but also the sticks. And the average folks on the outside are already earning more than you are.

Maybe read back 5, or better 10 years from 2015.. also very enlightening. Otherwise, you sound more like the Bitcoin guys - who are fully convinced that there will always be someone born dumb enough to keep buying at the highest prices - to the moon. Until the problem becomes so big that regulation comes in. Because the question remains - where is the real money supposed to come from? And this topic is a front-page issue today, no longer a niche topic like it was 4 years ago during the election campaign. It’s not only metropolitan areas affected, but also the sticks. And the normal folks outside are already higher earners than you are.

You sound quite bitter. More power to you!

Back to the topic:
It’s like with every thread that revolves around leasehold:
If there really is hardly any other option to buy, then it’s simply the only option.

But even this option must be calculated cool-headedly. And I just find a 4% leasehold interest rate (which, of course, is usually subject to inflation adjustments) simply cheeky. I know this from the area around Düsseldorf. The municipalities exploit the distress and have the land paid for within 25 years. And then again. And then again. And then again. Without inflation risk.
And the best part: if it’s a new development area, you still have to pay >20k development costs!

You have to clearly calculate whether that is manageable alongside the repayment rates for the house. The argument that it would be positive because the land doesn’t have to be financed at least is no argument. You don’t finance it—but you virtually repay it with 4%. With a never-ending repayment.

If the municipality enables "normal" families to build a house through leasehold by keeping the interest very low or reducing the calculation base, then I find the model quite good.

But we seem to be far from that here.

My tip: if it’s your absolute desired area, where every building gap is already built on and no new development area will arise in the foreseeable future: go for it.

Otherwise: expand your search radius and then the well-known forum advice: keep knocking on doors!

I kiss my own ass daily that we didn’t fall for this leasehold rip-off by the municipalities here but actively checked out building gaps. And so, in an absolutely swept-clean market, we had very concrete purchase options for 2 plots within 3 months. One at the standard land value, the other below. Both building gaps of around 600 sqm. No Instagram picture-perfect plots ;)

I will use the topic for a "similar" question:

We are currently interested in a single-family house (desired location) but leasehold (church approx. 180 euros p.m. - about 40 years remaining). We are torn back and forth... since we have been searching for a long time, many ideas come up :) We are attracted by the location, but the house was built at the end of the 60s, worn out (everything is on this standard, but solid construction) - costs about 500k

Now to the consideration: Intentionally sell again after about 20 years, keep the monthly burden low and only renovate/modernize what is necessary approx. 100-120k (if you wanted to bring everything up to the current standard approx. 180-200k - that would not be worth it to us overall)

Nonsense or realistic?

[*]I would ask myself the following questions: What about the extension of the term when buying and selling?
[*]How is the market structured? A 20-year forecast is not easy – will you get rid of this thing again? I got my previous condominium on a leasehold basis because the other interested parties didn’t have enough equity for the 70% financing, and the interested parties with more equity in their pockets preferred to invest in land for purchase.


[*]Are you satisfied with "just doing the necessary" in the long run? I WANT it to be nice in my property as well.

Regarding 1 – we don’t know yet (think next week) – the church, we think, will just extend it "easily" (but we don’t really know)
Regarding 2 – without leasehold it would be more like 700-800 thousand euros today (no idea in 20 years)
Regarding 3 – well, the distribution is already optimal for us – we would do bathrooms, kitchen, roof insulation and wallpapering / painting

Here to the pros :)
The house is from the late 60s, has the standards of the late 60s: so insulation, oil heating (gas connection is already there), windows – should / must one definitely do that?