Heritable building right experiences - cost trap or no problem?

Development costs must also be paid by those who buy a private property in a newly established area. Only then is it included in the price.

The question can only be answered if you know what a comparable plot of land would cost to buy. Normally, the Catholic Church also takes 4% of the land value as annual rent. Using this formula, I come to a land value of about €23,750. Now you can calculate how much interest cost you would have for an equivalent loan until it is paid off. With the currently very low interest rates, financing almost always wins against hereditary leasehold. So we end up again at my original question: are there similar plots of land available for purchase at a similar price in a similar location?

The land price with us is between 100 and 120€ per m² (that was the case 2 years ago). However, at the moment you cannot buy anything from us, possibly not again for another 2-3 years. My concerns are regarding the increase of the interest rate, don’t you have any concerns that in 10 years you might have to pay double or triple. According to the preliminary contract available, there is no period specified in which the interest rate is adjusted, only that it is linked to the consumer price index. Thank you very much in advance for the lively participation. Did you also have to pay for the development?

Normally, the contracts are adjusted every 7 years according to inflation or this consumer price index. So you don’t need to worry about an incredible increase now. It will just go up by 5-10% every 7 years, but with such a low base, that’s peanuts anyway. If the 100-120€/m² are also paid for undeveloped plots, in this case the ground lease is absolutely financially justifiable, as the ground lease rate would be only about 1% / year.

So with the 100-120€/m², the development is already included. Thanks for the info.

The tenant relies on rather older figures for the rent. That is an advantage. The consumer price index will not double either [emoji12]