Heritable building right experiences - cost trap or no problem?

I believe with the 2% inflation targeted by the ECB, I would have paid off the property after 36 years. Ground lease vs. financing - total amount. After that, the ground lease was more expensive, as it continued to rise

But you also offset the financing of the property against the ground lease, which you additionally need? Then the heritable building right does not perform badly at all.

... if you look at it closely, you would even have to consider the higher interest rate for the entire financing (land + house), which results from having a lower equity ratio measured against the total costs. And another major point is the property transfer tax. Depending on the federal state, it can be up to 6.5% for a purchased plot of land. There is something similar for leasehold plots, but this charge is usually only a fraction, mostly <3k€. I still see one disadvantage with leasehold plots: With some banks, the leasehold right alone results in slightly worse conditions. However, I personally do not consider this to be critical. Usually, the surcharges are not that high, certainly not high enough to offset the above-mentioned aspects. If in doubt, you simply go to another bank that is more lenient with the leasehold right.

, yes I did. It really wasn’t bad. I have to admit that. The problem for us was that it was a private leaseholder and not the church or a municipality.

I just cautiously inquired at my wife’s house bank and they immediately refused.

It is similar for us, i.e. if building plots are developed or offered, then at prices per sqm starting at €300 and up. Thus, a plot costs about €250,000 - 300,000 and then, for an average earner without a "large" inheritance, the dream of building a house unfortunately remains a dream...

The plot offered in our special case is valued at €150/sqm, but in reality it would probably be more like €250-300. With an increase in the VPS/interest rate of 1% annually, the monthly payment would only increase by €100 in 30 years.

We could just invest all our current equity of €150k into the house and, as Fleckenzwerg also wrote, then have a lower monthly burden for the house construction etc. (better interest rate, etc.)

But that's all nicely calculated.
300€/m² is still a moderate land price for many.
If you don’t need a 1000m² plot, the costs are correspondingly lower.
You can also build nice single-family houses on 400m². With 120k, that’s almost cheap.

The adjustment of the leasehold actually always depends on the consumer price index. For example, it increased by 36% from 1990 to 2012. That results in an average of 1.63% per year.
With that, your leasehold would increase significantly more in 30 years than you assume.
The fact is, in times of cheap money, leasehold is a makeshift solution; buying is economically the better option if possible.

It is also very understandable mathematically. Usually, 4% of the land value per year is assumed.
Even if the value is set slightly below market level, you come out better with a cheap loan.
And that completely ignores the fact that you NEVER own the land.
In the 120k land example, which was theoretically valued at only 60k by the leaseholder, you still would have paid the entire 120k in leasehold after 37 years. In a little less time, you would have also paid off a 120k loan with 2% repayment and, for example, 1.8% interest. Of course, around €43,000 interest would be added, but then the land belongs to you; you can sell it, inherit it, whatever.

The hereditary leasehold model would be an option for municipalities to designate building land, generate income, create capital, and at the same time influence the social compatibility of construction costs. Everyone could benefit: the community and the lessees.