Heritable lease property the only solution?

Can't you just take one of the two plots and build a semi-detached house on it?

"No monthly fixed costs in retirement" somehow contradicts [Erbpacht] ...

By the way, I know your problem ... I'm in the same area

Hi, first of all, thanks.
I had already used the search and read a lot, but in none of them was the leasehold so high, that's why my topic.

5m garden in depth is really not much.... it’s because you are only allowed to build from 5m away from the street.... totally nonsensical in my eyes, what am I supposed to do with such a front garden? Although roughly calculated, 100 sqm remain for the garden (behind the house), I think that’s still a lot for a city!

The interest rate increase is contractually regulated and as mentioned above, adjusted every 3 years according to the consumer index. In the last 10 years, this was a 15.54% increase.
I know that the land never belongs to us, but I probably won’t live as long as my children anyway.

The interest rate is even "only" 4%.... commercially it would be 5%.

We could also take just one, but didn’t want a semi-detached house.... actually.

I know that leasehold contradicts the monthly (not) fixed costs, which is why I am seriously considering it.

Otherwise, it is unaffordable for us to build a house if you also have to buy land.
Directly where I am, the sqm costs €1000 just for the land.

Lastdrop, where are you from?

We had the same problem. Although the plots here are just under 300 EUR and ground lease was also an option. After much back and forth, we decided against it and are very glad about it. Ground lease has only disadvantages in the end. Better: Save longer + build smaller and therefore without ground lease.

Regards, Steffen

Why does ground lease have only disadvantages?

If the plots are expensive and everyone wants to build, it is clear that prices will rise (heard of supply and demand?). If you don't have that much money, then the plot has to be small. If you are already paying 500€ per month just for the leasehold + paying off the house, your income is relatively low. I hope you have enough equity to build,... We have a semi-detached house with about 270sqm of land - that's more than enough. Bigger is always nicer, but you also have to be able/willing to afford it. Here, prices start at 700€ / sqm and up. Average earners can no longer afford anything here - that's how it is in metropolitan areas. The alternative would be socialism,...

I would also be interested to know why [Erbpacht] only has disadvantages?

Yes, I've heard about supply and demand!!! -.- (as if there are no stupid questions)
Even if the demand is high, I find it outrageous how prices are going up!
In a few years, interest rates will rise, demand will drop drastically, and property/house prices will still keep rising....I'm betting on that. That has nothing to do with supply and demand anymore.

We would bring €50,000 of equity.

EDIT: The building envelope is approx. 13m (deep) by 20m (length/width). And you have to keep a 5m distance from the street -.- ... with full depth utilization there would still be a 5m deep garden left (very little, right???)

5m garden in depth is really not much.... it's just because you are only allowed to build 5m away from the street.... totally nonsensical in my eyes, what am I supposed to do with such a front yard?

You are making a mistake: with a 521 sqm plot with a width of 20 meters, you have a depth of approx. 26 meters. The building envelope is only the area where you are allowed to build. The envelope will start at 5 meters. If you build a house standing sideways with 13 meters, it will possibly be 9 meters deep. Then you still have a garden of 12 meters at the back.

What can you do with a front yard? Welcome guests, parking space for visitors, a yard to play, etc. Besides, you generally don’t want your house right next to the street.

"No monthly fixed costs in retirement" somehow contradicts ground lease ...

Sure. But when do you have money, when is it tight? Most of us have additionally prepared well privately and will receive a decent pension (at least we all hope so). Then money is there. At the moment not, because the wedding was expensive, the family is growing, and a car is needed again and again. Then comes house financing... Of course, you must not equate the amounts you pay as interest with financing; nevertheless, because there is no repayment, you are somewhat freer, and something is made possible now that you might have to forgo without a leasehold agreement, i.e., with a land purchase. Later many costs will disappear, so the lease is bearable. I don’t want to promote or call ground lease great now, but it is another option – everyone has to calculate this for themselves.

Could also take just one, but didn’t want a semi-detached house.... actually

Then don’t take any – and stay in your rental apartment. But don’t say: actually we wanted to.