Partial sale land

First of all, let’s start with the basics, for those who have only heard of the “partial sale of a property”.

What does partial sale mean? How does a partial sale work?

A small definition – The principle behind the partial sale, is based on the sale and a subsequent royalty that you pay to your new part owner. So from the understanding the “user fee” is simply explained, with the comparison to rent or lease.

Partial sale at a glance:

• You sell a share (usually 10% – 50%)
• Financial company becomes part owner
• You retain the full right of use
• For this you pay a usage fee

Still in operation, whether in NRW or elsewhere:

Differences in the user fee

When buying a plot of land, it basically comes down to one factor, how big is the usage fee? Should you not have to sell very quickly, due to liquidity, you should think about the alternative mortgage loan anyway. Because, the user fee (disadvantage) is usually between 3 and 5% in the partial sale of land.

• Usage fee depending on provider: 3-5% p.a.

Example:

• Sold share: 100,000 euros
• User fee: 3-5% p.a.
• Cost: 3.000 – 5.000 Euro / year

So you pay an annual fee of 3,000 to 5,000 euros for the share sold worth 100,000 euros.

How is the value of your property determined?

If you do not know the current value of your land, it still needs to be determined. Central to this are, among others, key figures (such as the land area), its use (undeveloped land or used agricultural land, forest, springs, etc.). Important is the standard land value, which you can find in the standard land value map, but also an expert opinion. This is ultimately the basis for the concrete valuation.

Read more about the topic here:

• Rate property

Of course, the most sought-after are plots of land in the urban area, but many also sell agricultural land.

Comparison: mortgage loan on land

Compared to the mortgage loan, where you pay only 1%, already a significant disadvantage of the partial sale. In return, you do not have to go through the credit check of the banks. Another advantage, they get the purchase price almost immediately transferred.

At 1%, the annual savings are already 2,000 – 4,000 euros. In 10 years, a considerable difference.

• Advantage: More favorable conditions
• Disadvantage: Credit checks

So, if you have a lack of liquidity, so that you are forced to sell a plot of land immediately, then a partial purchase is a possible option. Because you save many steps in the sale of land.

On the other hand, you have high follow-up costs. Therefore, a comparison is worthwhile! Sale? Partial sale? Mortgage loan on the property? My recommendation is clearly the mortgage loan, because with it you save 2/3 of the costs (comparison partial sale). If you need money fast, really fast, the partial sale is definitely an option.

So always consider both options, partial sale and real estate loan.

Step 2: Total sale from the plot

All partial sale providers also give you the direct option of selling your property in full in the foreseeable future. The buyer is then the previous part owner, who thus becomes the sole owner of the property.

Here I give in the guide partial sale property still 2 valuable tips:

1. Total sales and inflation
2. Agree usufruct

Quickly explained:

Total sales and inflation

Assuming you sell in 15 years, inflation (demonetization) has increased ~ 32%, at 2% / year. So if you are made offer below 32% appreciation, not even inflation is compensated. That’s why it’s worth taking a look at the provider comparison.

Agree usufruct

If you want to sell your property outright but continue to use it “until the end of your life”, agree on usufruct. The usufruct guarantees you a right of use until the end of your life (non-transferable).

Staying liquid.

How does the part sale of a plot of land?

Let’s briefly summarize the findings again:

Difference sale and partial sale

In the regular sale of land, you sell your entire property, which means 100% of the shares of land. In case of partial sale of a land plot, you sell only a part of the property (land plot).

Most partial sale providers buy between 10%, 20%, 25% or even 50%, that is half of your property. For this you usually get, quickly and easily transferred the purchase price. This is the great advantage of partial sale!

Usage fee after the partial sale

For the further, sole use, you have to pay a monthly usage fee, the so-called usage fee. Depending on which provider you choose for the partial sale of your land, the amount varies from 3% to 5% (of the purchase price per year). Compared to the mortgage loan on your land (only 1%), already a significant difference for land sales.

Conclusion: partial sale of land makes sense? 3 options

Partial sale – If you need money fast, really fast (within a few weeks), due to cash shortages, then partial sale of your property is an option.

Sell and lease – Should you have a little time (more than a few weeks) you should rather think about selling your property and then lease it. Because especially in terms of inflation (total sale in the second step), you have some disadvantages in the partial sale.

Mortgage loan on your property – Important, talk to your bank. Even at an older age you can get loans. Many people are afraid of this and say “I won’t get a loan from the bank anyway”. Wrong! Therefore, talk with your bank and with 2, 3 alternatives. This way you pay only 1% instead of 3-5% (at the current interest level).

Tip. Also an option for forest areas with further management:

Partial sale XL: speculation tax, community of heirs & Co.

Read more about partial sale here – A look at costs of use, advantages, disadvantages, taxes, sale from joint heirs, divorce and much more. My recommendations for sellers!

• Partial sale property
• Partial sale provider comparison

Selling: Reasons from business closure to inheritance

Age, financing pressure or spontaneous inheritance – When a forest property is to be sold or has to be sold, it is therefore also often an emotional matter for the seller side. As I said, quite different from typical building land.

Nevertheless, it happens that a property is to be sold or has to be sold. Sometimes it is a financial reason, for example due to ongoing financing that requires liquidity, sometimes it is a spontaneous inheritance or an early gift…

What to do with a forest plot?

Location of the property – Especially if the property is not in your own region and is 200 km, 300 km or even further away from your home.

When the time comes, it’s on to the big question:

How do I sell (m)a forest plot?

Those who have not had any experience in selling real estate or land face a lot of challenges:

• How does a land sale work?
• What is the very, very first step?
• Can any broker sell forest land? In terms of personal network and expertise
• What are the typical mistakes when selling real estate?
• What taxes are due on the sale?
• …

Many rely on a regional real estate agent whom they know from their personal circle of friends, for example, or have received as a recommendation.

But, does this real estate agent have the right contacts in his network? In the end, your forest plot will only end up on various portals and accordingly everyone will know that your forest plot is for sale.

Is that what you want?

Tip: Trade your woodland property off market.

Forest valuation: Valuation of forests

What is a spruce forest still worth? A typical question, especially if you yourself have not been active in trading for a while and / or do not have time, for example because it is a small part of your own investment portfolio.

The condition of the forest is of course the criterion for the offer price, but also for the ultimate selling price of your forest. Has the forest been maintained or is it lying fallow? Location, transport connections but also the condition of the terrain are further value factors.

Forest evaluate, among others by:

• Condition of the forest
• Sustainable care of the forest
• Soil quality; forest soil expertise
• Location and transport links
• Condition of the terrain

Some factors increase the price, others decrease it. The valuation should always be carried out by an expert, i.e. a surveyor. The geotechnical expert, a civil engineer or geologist, prepares the soil expertise on site.

Selling forest land: Expiration

Of course, at this point we can’t give you a one-to-one guide to how land sales work in each individual case. Especially when it comes to the forest floor, there are still special factors to consider. But to give you a rough idea, we would like to refer you to our guide to selling land.

Checklist: Fast track forest sale

That’s how it works:

1. You should allow sufficient time for your forest sale
2. Valuation by an expert
3. Broad marketing on portals OR targeted off market sales
4. Credit assessment and buyer selection
5. Purchase contract and notary appointment

Here we show the different phases, from the first step, to the purchase contract and the settlement.

• Sell land

Sell the land and the spring?

Anyone who already owns land is familiar with the subject, but anyone who has spontaneously come into possession of their own forest land, as described for example by inheritance, divorce, donation, has many questions! It becomes particularly interesting when the forest plot not only has good quality soil, but also its own water source.

Sell water source: special case

With sufficient capacity (millions of liters / year), you have quite an interesting piece of land, for very many investors. Would you have thought of buyers from the food industry before the sale? Especially large food companies are very hot on quality water sources, because water sources are one of the most sought-after raw materials today. Just think of the water shortages that already exist today, even in countries like Spain or South Africa, when there is no water from the ground for weeks in the summer.

If you happen to have come into possession of a water source and are wondering, what do I do with it? Read more about the topic here:

• Sell water well

Land sale Berlin: Learn the procedure

There are various factors that influence the value of a plot of land, depending on whether it is a meadow or forest plot, agricultural land, raw building land, land awaiting construction or building land. On the one hand, of course, the intended use of the land, the possibilities of building on it and, of course, one of the central value factors: the location of your land. Regardless of whether it is a building plot, land for construction, forest land or agricultural land in the Berlin area, the same questions always arise for sellers and property owners!

This is where our guide or guidebook comes in, which brings the sale of land, including the valuation of the land, piece by piece closer.

The right time: credit pressure, old age, inheritance

As different as the reasons are, the process of selling real estate is always relatively the same. Broadly speaking, it involves 3 phases: 1) the preparation for the sale of the property, 2) the marketing phase and 3) the completion of the sale.

Reasons for selling a property are many and varied. As mentioned above, it can be a sudden inheritance and confronting a property that may not even be in your immediate area. Even if it is right next door, what do you do with that property? Apart from inheritance, there are of course many other reasons, for example financial pressure due to existing loans, as well as old age.

Either way: Timing is key so there is no pressure to sell. Ideally, you inform yourself now because you want to sell in 3 or 4 months. If you need to sell sooner, it is advisable to approach domestic investors, foreign investors, institutions, construction companies directly through experts in off market trading. More on this later.

Advantage Berlin: Hype of the city

Berlin attracts investors like no other city in Europe. Berlin is located in the middle of the many countries that are part of the European Union. Berlin is also relatively central in Germany and is easily accessible from cities like Munich, Hamburg and Cologne, by car, train and plane. As the capital city, it is not only interesting for tourists and business, the country’s major politics are also at home here. You see: Many, different target groups!

This in turn supports the sale. Sell in districts such as Schöneberg and Wannsee or in trendy neighbourhoods such as Kreuzberg, Friedrichshain and classy districts such as Grunewald and Weißensee.

Sale in 3 phases: Preparation, marketing and closing of the sale

You may have already read about these 3 phases, with their individual steps, in our guide to selling property.

This additional guide to selling land in Berlin is specifically for those selling their first property. In addition to the phases, we also take a look at the property valuation (location, layout, size, development, etc.), the general and more specific documents and records needed for the sale and … but let’s start at step 1:

The preparation of the sale

Prepare land sale: Planning and strategy

The preparation phase is concerned with strategic planning, as with the sale of an apartment or house. The preparation phase is crucial for the success of the sale, here it is about the right timing, the selection of the right broker (for the right target group, as mentioned above), important documents and records for the sale, from which ultimately the offer price (land value) is calculated. No matter whether building plot, forest, field or acre.

Berlin is a sought-after place. At the same time, as a (first-time) seller, you can make an extremely large number of mistakes that ultimately cost you a lot of money. A loss of only 15% on a property worth 5,000,000 euros can result in a loss of 750,000 euros. And we are not even talking about properties in Berlin Mitte. You can achieve such prices in Berlin Pankow, for example.

But back to step 1 in the preparation:

1. Set time schedule
2. Make an appointment with a real estate agent
3. Collect documents
4. Prepare property
5. Determinequotation price
6. Create exposé

Timing and broker selection

First of all there is the time planning. For the sale of a property you should calculate with at least 3 months, from the first thought to the notary appointment and transfer of the purchase price. Of course, it can go faster (the mentioned, direct and discreet investor approach in the off market area), but we want to give a general overview here!

At least 3 months time, until the sale, does not mean that it is also sold after three months. Here, above all, the decision for the right real estate agent plays a role, as well as the valuation of the property. If the valuation is set too high, you will lose interested parties for your property offer – even in Berlin!

Generally speaking, selling under time pressure is never a good option.

Real estate prices in this country are relatively high and stable in almost all locations, after all, it is one of the strongest real estate markets in the world. Berlin in particular has been experiencing a boom for a long time. Square meter prices in Berlin are rising, even though the city government is fighting against it. Measures against “speculators” (investors) are, for example, the Mietpreisbremse (albeit recently overturned), ordinances on renovation and modernization, conversion of rental housing to condominiums, etc.

Berlin: Price development (comparison)

The goal of most investors: to develop land. That means: the more residential units, the more buildable floor space, the better. This is also evident when looking at the price being asked for a square metre of condominiums in Berlin.

The development of asking prices for condominiums in Berlin, from 2012 to the 1st quarter of 2021 are enormous. Here is an insight into the average price, in euros per square metre.

• 2012 (Q1): 1,671 Euro / m²
• 2015 (Q1): 2.321 Euro / m² (+ 38.9%)
• 2017 (Q1): 3.154 Euro / m² (+ 35.9%)
• 2019 (Q1): 3,897 euros / m² (+ 23.5%)
• 2021 (Q1): 4,781 Euro / m² (+ 22.6%)

From 1st quarter 2012 to 1st quarter 2021, a total increase of + 168.1 %.

Sell land privately?

From my experience without expertise through previous sales, a real experiment and venture, where many mistakes can arise in the sale of property. Often it is then recommended to accept the help of the real estate lawyer, because he knows better with the tax savings in the sale of real estate, finances & Co.

If you’re interested in the dangers that can happen from selling property privately, here’s our list of the typical, 15 mistakes when selling real estate. Condo, house, apartment building, land:

• Mistakes in the sale of real estate

So let’s summarize briefly: If you sell off market to well connected brokers, it can be very quick, sometimes under 30 days to transaction, thanks to targeting investors in the internal network. When selling via real estate portals, it’s more like 3 months and a lot of communication with private individuals, plus credit checks, etc.

After scheduling and choosing a good real estate agent, move on to the documents and paperwork they will need for the property sale.

Documents and records for the sale of land

The documents are prepared early, because they also serve for the valuation of the property, we will come to that in a moment.

Reading Tip: Selling Property: Documents

As a rule, before you sell a property, you need the following documents:

1. Cadastral map or real estate map from the cadastral office
2. Development plan
3. Land register extract Land registry
4. Land use plan
5. Preliminary building application
6. Information on building encumbrances
7. Development proofs
8. Notice of land tax

Prepare the land? Shouldn’t the next step be the property valuation and the offer price? No, because by no beauty corrections the price can be corrected often still a little upward. No picture has been taken yet, no exposé and no investor has been approached.

Increase in value before property valuation

Here is a small example from practice: When I speak with my investors, these are usually larger companies, institutions or family offices. Accordingly, a person is quickly sent from somewhere in the country, who quickly makes an overview of the property, live on site. Just like that, quickly by car, a few meters on foot.

For the exposé, for the valuation but also for such spontaneous viewings, it is worth taking a look at ways in which you can still increase the value of your property. From simple “beauty corrections” to preparatory measures for further development.

In our example from practice it was about a property from Berlin. Who knows Berlin knows that empty properties, without security measures, are quickly littered. If even apartment buildings in Berlin are occupied, then no properties are safe.

It’s just little things, but just as an increase in the value of the property, through small beauty corrections or renovations is achievable, can also optimize properties before the property photos, before the valuation, before the first visits. Thus the value can be increased with the property sale, in which you for reorganization work a craftsman, or for small rebuilding measures an architect in Berlin to rate pull. It is not about 5%, 10% increase in value, but even an increase in value of 1%, 2%, makes a property of 1 million market value already a significant proportion, which you can pocket as a seller profitable for themselves.

Offer price: Determine property value (valuation)

The valuation of a plot of land is subject to various factors, just like the valuation of any property. The following factors, among others, are decisive for the valuation of land.

First, as with any property, is location.

Location, location, location … also for Berlin properties

This is also about the development and transport links. The next factor in land valuation is the size of the plot. But size is not everything, the layout also plays a role. In addition to size and layout, there is of course also the development, soil condition, standard ground value, as well as possible contaminated sites and third-party rights.

Exact details should always be discussed and worked out in cooperation with your advisor (broker).

In addition to the location and size, of course, it becomes much more specific: Are we talking about building land, are we talking about soil samples, are we talking about forest land, then also climatic changes, to agricultural land and so on. The land valuation is therefore not as easy to summarize as the apartment valuation or the house valuation.

Value factors: checklist

The factors are important for the evaluation:

• Location of the property
• Size and cut
• Development of the area
• Soil composition
• Degree of development or buildability
• Legacy
• Third-party rights
• Ground value

Property types

In addition, depending on the property, still value factors in the area of the development. Depending on which possibilities are available for the construction.

• Forest or meadow land; if necessary, no construction is allowed
• Land awaiting construction; may be built on in the foreseeable future
• Undeveloped land; land not yet developed
• Building land; development possible within the framework of the development plan

Preparation for the sale of land – Conclusion

Here is a summary of the individual steps. A simple checklist, consisting of 6 key points, which will bring you closer to the process of selling a property.

1. Timing
2. Broker appointment
3. Documents
4. Prepare property
5. Offer price
6. Exposé

When it comes to property valuation, there are a number of factors that come into play. The complexity of each individual property valuation, we can not convey in this general guide, but we can give you this tip, ask yourself the following questions:

• What type of land are you selling? Is it a building plot, a forest plot, agricultural land,…
• How big is your property?
• What type of use is intended for your property?
• How can your plot be built on? This means building footprint (BGF) and house type and / or apartment type
• What are the transport links to the location of your property?

Berlin: Real estate in the capital

Capital, university city, historical stronghold and as an international location an attractive place to live for families, couples, singles and students. Accordingly, Berlin faces a continuously growing population due to immigration.

Berlin real estate market: overview

Berlin offers everything from fashion, art, finance, start-ups, and the list goes on. There is hardly a person who would not find their passion in this city of 3.75 million. This is also evident in the sprawl of the city and the different districts. For this reason it is often described as’ many cities in one’. A walk through Berlin-Mitte is very different from Kreuzberg and Prenzlauer Berg is not often confused with Zehlendorf.

• Real Estate Berlin

Living in Berlin: Popular residential areas

We present the most beautiful districts of the German capital and tell you where you can buy the best, highest quality and most exclusive properties to set up your new home, or which districts are best suited to invest in a property as an investment. Here we present the most popular residential areas – from upscale Grunewald to charming Schmargendorf and quiet Dahlem to historic Charlottenburg. Back to overview: Living in Berlin.

• Grunewald
• Charlottenburg
• Zoo
• Dahlem
• Schmargendorf
• Prenzlauer Berg
• Kreuzberg
• Kurfürstendamm

Selling real estate in Berlin: house, apartment and land

As an international location, Berlin is an attractive place to live for people from all over the world. While the district of Wilmersdorf in Charlottenburg convinces with its well-kept green spaces, the residential areas of Prenzlauer Berg and Weißensee in Berlin-Pankow inspire with their unbeatable prices and central location. You want to sell your apartment, your apartment building or your property in the world metropolis Berlin? With our free guides and tips on the topics of real estate sales and property valuation, you are well prepared. Back to overview: Selling real estate in Berlin.

• Pankow
• Charlottenburg
• Wilmersdorf
• Friedrichshain-Kreuzberg
• Prenzlauer Berg
• Kreuzberg
• Wannsee
• Steglitz
• Schöneberg

Firewood storage at a glance: Security for your property

• Correct, fire-protected place for the storage of firewood
• Correct storage is regularly checked by a chimney sweep

Storage tips

If you have found a suitable storage place for your firewood, then you should still consider a few things. The firewood should always have a sufficient air supply and be protected from moisture. Make sure that the firewood has had a reasonable drying time when it is burned. Depending on the moisture content of the wood, this drying time can vary. As a general rule, hardwood requires a longer drying time than soft wood.

• Firewood needs sufficient air supply
• Should be protected from moisture
• Adequate drying time before combustion
• Hardwood needs longer drying time than soft wood

Heating with fireplace & stove fireplace?

A fireplace provides relaxation, a sense of well-being and warmth. That’s why it’s not surprising that fireplaces and other stoves are at the top of the wish list of homeowners. Especially on cold days, there is nothing better than snuggling up in front of a crackling fireplace bursting with warmth and enjoying the time. There are many different types of fireplaces. From open and closed to tiled or pellet stoves that all have advantages and disadvantages.

• Fireplace & stove fireplace

Firewood storage do it yourself & cheap

Firewood from the forest?! Tips

Crushing, stacking and storage

Back to the wiki: Real Estate

There are several well-known major cities nearby that are very easy to reach by car. These include Frankfurt am Main, Offenbach am Main and Wiesbaden.
Apart from the core town, Friedberg has five districts named Bauernheim, Ossenheim, Dorheim and Bruchenbrücken. The districts were annexed to the town in the course of municipal area reforms and each has its own individual character.

Successful real estate sales in Friedberg

The real estate market in Friedberg is very much on the move. Properties for sale often enjoy very brisk demand shortly after the advertisements are published. Building plots, houses and condominiums are considered particularly popular. As Friedberg is surrounded by various towns, the town has a very good infrastructure, which has a positive effect on the value of the property.

If you are planning a property sale in Friedberg, you can be prepared for many enquiries and viewing requests right from the start. Friedberg is very popular as a place to live due to its size and interesting location.

Since the sale of real estate often involves a high investment of time and a stress factor that should not be underestimated, we offer you our support. If you are planning to sell your property quickly and at a price that is advantageous for you, you should decide to hire the online brokerage Lukinski – My House Sale. Our services include creating the exposé, placing the advertisements and communicating with potential buyers. If you don’t want to, you don’t even have to contact potential buyers, because we’ll take care of that for you. Choose to sell your property quickly and benefit from the fact that Lukinski, as your online broker, is available to you around the clock. We specialize in regions in the federal states of Hesse and Rhineland-Palatinate and bring our experience to every real estate purchase. Convince yourself of our commitment and contact us.

Real Estate – Tax Traps – Video

Possibilities for local recreation and leisure activities

Friedberg looks back on a long history. All tax aspects explained: capital gains tax. This has left its mark on the town over the centuries. Among the sights that are always worth a visit, even for locals, are the city church “Unser Lieben Frau”, the Jewish bath (Mikwe), the old town hall, the theological seminary, the city wall, the Wetterau Museum and the water tower. The region is also very interesting from a scenic point of view. Friedberg is located in the Wetterau, above the confluence of the Usa and the Wetter. Part of the Friedberg district lies in the Taunus mountains on the Steinkopf, which reaches a height of up to 518 meters.

Very good infrastructure for commuting and travel

The A5 serves as the most important transport connection. Frankfurt am Main and the university town of Gießen in the north can be reached quickly via the motorway.
The A45 comes from the Gießen area. It takes you to the eastern Rhine-Main area. The Bundesstraße 3 also leads in the direction of Frankfurt am Main and ran through Friedberg until 2009. From 2009, the bypass was opened to traffic and relieves the inner-city traffic of the city of Friedberg. The international airport Frankfurt am Main is about 40 kilometres away and can also be reached quickly via the A5.