Question about a plot with location plan

ps: €350/sqm is quite a statement. the earnings seem to be good as well...

No - the demand, see my note on population density, also in connection with available building land and infrastructure. The plots are not half as big as yours for no reason, but because the average home builder's budget is roughly the same as yours. Only with a different distribution between house/land.

I said the plot is over budget.. we only wanted to reluctantly exceed €150k including additional purchase costs... here the larger one would be €162k and the smaller one €130k

Offer €130k all inclusive for the lower one if you prefer, and wait to see what happens. Or fully prepared with enlarged leveled area €150k all inclusive, then the seller should step in and increase/realize the supposed land value.

Best regards Dirk Grafe

No – the demand, see my note regarding population density, also in connection with available building land and infrastructure. The plots are not half as big as yours just for fun, but because the budget of the average home builder is roughly the same as yours. Only with a different distribution between house/plot.

I offer 130,000€ all-inclusive for the lower one, if you prefer, and wait to see what happens. Or fully prepared with enlarged leveled area 150,000€ all incl., then the seller should just take action and realize/lift the supposed land value.

Best regards
Dirk Grafe

Somehow that can't be right. At 350€/sqm the demand must be so huge that you would round up the purchase price rather than round it down. The plots are of course smaller so that anyone can actually afford them. 130,000€ is still a lot for the plot though. I once calculated that 10,000€ more for the plot would mean 4km less driving over 20 years. So if I have to pay 50,000€ more for the plot but save 20km driving to work, in the end it evens out. And with that you can justify the expensive plots again. Cheap plots in the middle of nowhere with 30km driving distance to work are basically worthless. The money is eventually spent, whereas the high land costs always remain (unless the area becomes worthless due to certain events like airport flight paths or all major companies move away).

Still, it's supply and demand. If every "middle-class employee" can pay a sqm price of 350 euros, the income must be better there. Because here we cannot pay 130,000 net for the plot. We paid about 63,000€ net (net = without additional costs but with VAT...) and are thus already in the high upper middle range here, since the location and position is very decent. As I said, in the end high sqm prices are advantageous because the value is not lost and you also get a "counterperformance" for it (e.g. close to the center, short commute, large industry or similar nearby or so) and a house like that is always easier to sell.

somehow that can’t be right.

I seriously wonder what is wrong with you. You have no clue about valuation, but you happily speculate blindly.

at €350/sqm the demand must be so enormous that the purchase price surely has to be rounded up rather than down.

Nonsense. The original poster made it crystal clear that he can spend €150,000 all-in for land acquisition. Ergo, he has to buy the Porsche with a turbo (south-facing), which unfortunately has a significant rear damage (small garden or only usable with increased capital investment) and where it’s not even certain if it can be completely fixed (residual risk that the garden stays as is and the value of the plot won’t be increased by leveling (sic!)), for well below the Schwacke value. Otherwise, that Porsche will end up draining the wallet – it has happened before.

If the seller values the vehicle significantly higher, they just won’t (quickly) agree – no matter where the Schwacke value lies or whether the seller’s price setting is realistic. Then the original poster has to (or can) look for another vehicle – namely the Golf Plus (north-facing) for €130,000, which is on sale without accident damage and is immediately drivable.

Understand the principle?

the plots are of course smaller so that someone can even afford them. €130,000 is still a lot for the plot.

Please take a look at a land value map of NRW..

Everything west of Wickede is automatically +€150 and these are partly very old development areas. In the Ruhr area or the Lev/K region there are commercial areas (!) where easily +€100 is asked for. You can compare that 10 times with your meadow in SH – it only remains pointless. Completely.

I once calculated that €10,000 more for the plot price would mean 4 km less driving distance over 20 years.

Understandable so far, but you don’t just drive to work and people generally work longer than 20 years. If both partners work, the calculation for the green meadow gets even worse.

so if I have to pay €50,000 more for the plot but have 20 km less commute to work, in the end I come out about even. And that can justify the expensive plots. Cheap plots in the middle of nowhere with 30 km commute to work are basically worthless. The money is eventually spent, while high plot costs remain (unless the area becomes worthless due to certain events like airport flight paths or major companies all move away).

Exactly. Incidentally, in SH you have a much higher risk that your residential area will lose value in 30 years than one in NRW with a value of +/- €350.

still supply and demand apply. If every "middle-class employee"

Baseless accusation. €350 is towards the upper limit even for NRW and even in metropolitan areas. But I neither know the income, the employment situation nor the other family/financial situation of the original poster well enough to attribute such a statement to him – let alone generalize it.

can pay a sqm price of €350, the income there must be better. Because we here cannot fork out €130,000 net for a plot. We paid just under €63,000 net (net = without additional costs, but with VAT...) and are already solidly in the upper middle range here due to the location and position.

Your location is not decent and not remotely comparable to the original poster’s location – that can be said for sure without even knowing your plot. To find a comparable location in SH you have to look in Lübeck, Kiel, Sylt or north of Hamburg for plots costing around €350/sqm. Your location is miles away from that – geographically as well as especially infrastructure-wise.

as said, in the end high sqm prices are advantageous because the value does not get lost and you also get a “consideration” for it (e.g., central location, short commutes, major industry or the like nearby) and such a house is always easier to sell.

Also better (higher!) loan collateral value, and in case of doubt also selling at a profit after 30 years even with a not fully paid-off mortgage. But to understand that, you have to mentally detach yourself from the green meadow.

Best regards
Dirk Grafe