DG
2016-04-28 11:22:25
- #1
The speculations about the land price surprise me a bit. If the information about the standard land value is correct, then it is at least a sought-after location, if not a gem in the respective city - ultimately depending on the size of the city.
For comparison: Lippstadt has about 35K inhabitants, a standard land value of 500-600€ is only reached here in the pedestrian zone and there only in the area where most pedestrians can actually be found. However, you wouldn’t build purely residential there, unless you build very high quality and have your own shop around the corner.
In a city with +250K inhabitants, this is still very central for a residential area, has to be very central and therefore probably also has considerable development potential with the railway line, no matter what the current rate is. (Compare “BORIS NRW”, city center of Essen or Dortmund, there 500€ for pure residential areas are occasionally exceeded in the absolute center, otherwise these are always mixed/core areas)
Just to say that upfront, more can be said when the city and rough location are known.
: I suspect that the relatively high standard land value results from location and buildability, meaning: I guess that in your case not only pure residential use is allowed, but at least a mixed-use area applies. Or it is a residential area in a city with over 250K inhabitants and thus definitely a sought-after/exposed location, regardless of the railway or its negative impact, which is already factored in.
If it is a mixed-use area (i.e., with commercial use), then you partly forgo the opportunity to increase the value of the property. That is then your own decision. For commercial use, proximity to the railway is not so relevant, because no one sleeps there at night.
If it is a pure residential area, it is ultimately a question of how you develop it. One might be able to oblige the railway/city to do something through a lengthy legal dispute – on the other hand, you are currently free to decide what to do with the property. If the value development is there and you can use the location residentially yourself (short distance to work, for example), then you just have to plan so that you can sit quietly in the garden and sleep at night – although I am personally skeptical about that, but there are technical solutions.
If the location is not an absolute hit for your work, I would still consider offering the property in exchange for a quieter building plot. You could, for example, swap for an equally sized plot in a location priced 300-400€ and would have plenty of start-up capital for the new building. For many builders, the deal is already done at the time of buying the plot, so you should be clear about how much leverage you really hold or how big the personal luxury is if you do not fully tap into the value of the location through residential use.
Best regards
Dirk Grafe
For comparison: Lippstadt has about 35K inhabitants, a standard land value of 500-600€ is only reached here in the pedestrian zone and there only in the area where most pedestrians can actually be found. However, you wouldn’t build purely residential there, unless you build very high quality and have your own shop around the corner.
In a city with +250K inhabitants, this is still very central for a residential area, has to be very central and therefore probably also has considerable development potential with the railway line, no matter what the current rate is. (Compare “BORIS NRW”, city center of Essen or Dortmund, there 500€ for pure residential areas are occasionally exceeded in the absolute center, otherwise these are always mixed/core areas)
Just to say that upfront, more can be said when the city and rough location are known.
: I suspect that the relatively high standard land value results from location and buildability, meaning: I guess that in your case not only pure residential use is allowed, but at least a mixed-use area applies. Or it is a residential area in a city with over 250K inhabitants and thus definitely a sought-after/exposed location, regardless of the railway or its negative impact, which is already factored in.
If it is a mixed-use area (i.e., with commercial use), then you partly forgo the opportunity to increase the value of the property. That is then your own decision. For commercial use, proximity to the railway is not so relevant, because no one sleeps there at night.
If it is a pure residential area, it is ultimately a question of how you develop it. One might be able to oblige the railway/city to do something through a lengthy legal dispute – on the other hand, you are currently free to decide what to do with the property. If the value development is there and you can use the location residentially yourself (short distance to work, for example), then you just have to plan so that you can sit quietly in the garden and sleep at night – although I am personally skeptical about that, but there are technical solutions.
If the location is not an absolute hit for your work, I would still consider offering the property in exchange for a quieter building plot. You could, for example, swap for an equally sized plot in a location priced 300-400€ and would have plenty of start-up capital for the new building. For many builders, the deal is already done at the time of buying the plot, so you should be clear about how much leverage you really hold or how big the personal luxury is if you do not fully tap into the value of the location through residential use.
Best regards
Dirk Grafe