Is building a house financially feasible?

2015-03-06 22:17:28

If it were 10 euros a month, okay, but it's more like 200. For that, you can already get a loan of more than 100k euros for a plot of land, which then belongs to you after 30 years! For 100k, you should be able to get a decent plot of land in most areas.

Math wasn't your strong suit, was it? Even with the low interest rates, you need at least double the installment to pay off 100k€ in 30 years.

You just have to take over the plot of land along with Grandma's old house, tear down the old house and build a new one on it for a lot of money, then the contract expires, the lessor doesn't want to renew, and you get the eviction lawsuit served?

You know when the contract ends. Nobody would do such nonsense and build a new house shortly before the end. Besides, you build the house for yourself. I wouldn't care if the house passes to the church in 99 years.

2015-03-07 00:04:24

I wonder why you are here badmouthing a system that works by all means... And then with an ancient link based on the Deutsche Mark, which still does not distinguish you in understanding the hereditary leasehold right.

I hardly believe that anyone here, who keeps their distance from used properties (as you have bought them), defends this attitude vehemently with googled knowledge about costs that you put into an old building and never get back anyway, in terms of slogans like "old stays old," "musty smell stays," "second hand, never," and "asbestos building."

2015-03-07 19:50:29

Ground rent is just like rent. You pay and pay, and the land never belongs to you anyway. If it were 10 euros a month, okay, but it’s more like 200. For that, you can already get a loan of more than 100k euros for a piece of land that then belongs to you after 30 years! For 100k, you should be able to get a decent piece of land in most areas.
That alone clearly speaks against ground lease. The problems when selling do as well. Who wants such a construct?
And where exactly was it disproved again that the house passes into the landowner’s ownership at the end of the ground lease contract (for a few euros in “compensation”)? You just have to take over the land with the old house from grandma, tear down the old house, and build a new one on it at great expense; then the contract expires, the lessor doesn’t want to extend it, and you get an eviction suit served?
Or you “get to” choose whether you want to pay triple the ground rent in the future? And if you can’t and don’t extend the ground lease contract, the claim for compensation even expires and the house is gone completely. Doesn’t that sound great?!

To read about it here xxx.wallau-Bewertung.de/Erbbaurecht.HTML

btw, our previous owner had leased land with this house that we did not take over (too slow, too lazy, neighbor was faster). But the lease contract was included in the house documents and every few years the rent was happily increased sharply. Although it was “only” a forest plot, the ground rent quintupled (!!) in 20 years of term.

You have never dealt with the subject, have you? EVERYTHING is contractually regulated, i.e., ground rent and possibilities for increase, what compensation must be paid at the end of the ground lease contract, reversion, etc.
There is even a separate law for this that you can educate yourself on.
In the end, a ground lease can be a real win-win situation. The issuer of the ground lease preserves their assets and receives a return, while the acquirer gets the land and only has to pay “rent” (currently usually a higher interest than buying).

@ ypg
The 5% comes from my own experience with construction financing over the last 20 years. Many years ago, it was still an inexpensive way to get land (especially from the church). Around here in the Ruhr area, that’s a fairly normal story.

Is building a house financially feasible?

Musketier

ypg

nordanney