Property

Hello everyone,

I am completely new here in the forum and hope that someone can help me.

My husband and I with our 2 children moved back from Canada about a year ago and are now renting near Gießen. We have settled in very well and would like to buy a house with our own capital. Now we have found a plot of land in a village with about 800 inhabitants, approximately 10 km from GI, with very good A5 access to Frankfurt and otherwise only a few minutes' drive from everything. However, there would be no major infrastructure, and the building area has been developed for 3 years but not yet fully sold.

We have spoken to some people who think we are wrong to build in such a small village because the value of the property will not hold in the long term. Since we want to leave something for our children that still has value, we are now wondering if it is the right decision.

At the moment, we live in a community with about 12,000 inhabitants, only 5 km from the other place. I am uncertain and afraid that we are making a mistake; however, the houses in our current community are all very old and almost unaffordable, which is why we have looked elsewhere.

What advice do you have? It would be nice if you could brainstorm with me. Due to our 10-year stay in Canada, unfortunately, we no longer have the experience of how things work in Germany. There, real estate was much simpler anyway.

Thanks in advance.

Hello Daniela,

it is quite simple: in popular areas there is high demand and presumably at least a preservation of value or even an increase in value. In these areas there are more interested buyers than plots of land, usually due to the general infrastructure.

In the development area you are interested in, there are fewer interested buyers than plots, so only low demand. It is to be assumed that values in this area will not hold up compared to more popular residential areas, and will likely even decrease, unless demand rises due to improved infrastructure or other value-increasing factors (e.g., if many new jobs are created locally) in 30 or 40 years. One cannot know for sure, but it doesn’t sound likely, ergo one only lives/buys there if one really wants/has to and what remains is a matter of luck.

As a permanent investment or an object for value appreciation, it is therefore rather not recommended; if it is the right location for "living it down," then it can still be bought. Nevertheless, the value of the house in 30-50 years will probably not be zero if it is regularly maintained – but there is a residual risk that the property will lose significant value if demand continues to decline and people tend to move away.

This does not necessarily have anything to do with "Dorf" – there are villages where there is an abundance of building land and other villages have more demand than they can or want to offer.

Best regards Dirk Grafe

Hello Dirk, thank you very much for your detailed answer. I had imagined it in that direction as well. We really like it there, but I am really concerned about infrastructure and social life.

In addition, we have a daughter with a physical disability, and we do not know if she will ever be able to drive a car, and the thought that she would then be stuck in the village is not particularly pleasant.

At the moment, I am more inclined to buy an already existing property in our current area and renovate it accordingly. I believe that would be the better solution. Not cheaper but definitely better.

Thanks again.

Hi, may I ask where you want to build? We also come from the area near Gießen and have already secured a plot of land near Grünberg with top access to the A5. From my point of view, good access to a highway is worth its weight in gold, especially since the base prices for plots located near highways will probably continue to rise in the foreseeable future... Flexibility/mobility will become a price driver... So - if the access is good, grab it!

Hello Sinus1986, we have reserved a plot of land in Bersrod in the municipality of Reiskirchen. The connection to the A5 is absolutely optimal, about 7 minutes by car to get there. That is why our consideration was also that the price must rise or at least be maintained. The municipality also gives a child bonus so that young families move there.

Hello Daniela,

I would like to add another aspect: the value of a house as "inheritance" should also be considered relatively. If it is definitely going to be sold, the price development should be kept in mind. If the option is on the table that one of your children will live there permanently, it is different again. Then the value of a fully paid home and "only" additional costs should of course be set higher. The same applies if the option of renting is there. A good friend has arranged it similarly – the children inherit the paid-off house in the commuter belt of Berlin. Whether they live there themselves or rent it out (and thus have a regular extra income) they can decide themselves.

Because of the proximity to GI, I personally don’t think it will really lose value. Currently, the trend is moving more towards rural areas with good connections, and that is the case with you. Those who want a big city/downtown also choose it. Those who move to the belt prefer peace – infrastructure is within reach anyway.

The only sticking point is your daughter. But the question is how it is at her current place of residence. Is her mobility there permanently secured?