Owned land or leased land: difference

Some weekend homes are located in popular holiday regions. Others are considered more of an insider tip and are hidden away on the edge of the mountains, near the Main River or in the middle of nature. If you want to buy a weekend house, you can choose whether you prefer nature, water or mountains. Decide on a location that you individually prefer. Weekend homes are not designed for residential purposes. They are for recreational purposes. For this reason, it is important that you feel comfortable in the area. If you are planning a rental, you should find out which locations are particularly popular. We will be happy to assist you in this and offer you weekend houses that exactly meet your individual requirements.

Reading tip: Buy a farm

The decision to buy a farm is made by families as well as couples or singles in middle or older age, who want to change and appreciate the individual way of living in the middle of nature. We offer farms in attractive rural locations. Read more here: Buy a farm.

Cottage with garden plot:

Country house and idyll in one:

The perfect getaway on vacation (+ potential for rental):

Residential purpose and purchase agreement

When buying a weekend home, the demands of buyers differ from those who want to purchase a property for residential purposes. Weekend homes are often smaller and more simply furnished than residential properties. The land on which a weekend home is located does not necessarily have to be the subject of the purchase contract. Many weekend homes are on leasehold land. This is particularly the case within garden colonies where weekend homes are often managed on leasehold land.

Lease land

If you lease the land, it does not become your property. The advantage is that the purchase of the weekend house is significantly cheaper than if you also purchase the land. The disadvantage, however, is that you sometimes cannot use the leased land as you would like. Especially in garden plots there are specifications. For example, you must plant part of the garden with fruit or vegetables and use it accordingly. Find out in advance about the possible uses and the requirements in relation to the leased land. It is also important to find out what will happen to the leased land in the future. Sometimes the owner has plans for a different use. We will be happy to assist you in obtaining this information.

Owned land makes for higher purchase price

If the weekend home you have shortlisted is on freehold land, you will have to pay a higher purchase price. In return, you acquire ownership that enables you to use the weekend house and land as you like. There are no covenants, unless you are buying in a privatised garden allotment and the owners have collectively decided on certain covenants at the meeting. You can find this out in advance. Otherwise, you can use the garden land as you wish and create an oasis for relaxation and recreation.

Dreamlike at the North Sea:

Perfect for families: close to the beach.

Apartment or house? Tips for the purchase

Owning instead of renting. Most people prefer to spend their holidays in the same place, over and over again. So why pay rent when you can be the owner?

Even better, the condominium or weekend house can be easily rented out with management. In this way, the weekend apartment or house also generates a return.

Buy an apartment: Condominium instead of rent

If you want to buy an apartment, you have a choice of different properties. You can invest in an expensive apartment in an advantageous city centre location to rent out on the open housing market or move in yourself and live in an attractive and popular residential location. Alternatively, opt for an apartment that is located on the outskirts of a city or that is in the countryside. There are apartment buildings there as well, where apartments are sometimes offered at very reasonable prices. If you are looking for a housing option that is cheap in terms of monthly costs and if you cannot invest a high purchase price, this option is a very good choice for you.

• Buying an apartment: Tips

Buying a house: Tips for the second home

The dream of owning your own home, living independently within your own four walls instead of in a rented holiday apartment, being able to design everything yourself and furnish it according to your individual wishes. Buying instead of renting means: building up knowledge. What is buying a house all about?

With wishful thinking around the “dream house” for the holidays it is far from done. Because there is much more to buying a house. The goal of being able to sit back, relax in your own garden and enjoy life at the weekend is a long way off. To make this as easy as possible, here are the best tips & tricks, what you should pay attention to when buying a house, and what pitfalls you can avoid.

• Buying a house: Tips

Buying a weekend house: Important criteria

Once you have obtained all the information relevant to the purchase of the property, you should also consider the criteria that are relevant to the purchase of a weekend home.

Old building: Check building fabric to water supply

Pay particular attention to the fabric of older houses and those that are not of solid construction. Wooden houses, for example, need very good maintenance, ideally done inside and out. Include the condition of the roof in your research and find out if and how the weekend home can be heated. Especially in remote regions along the Main or in the Taunus, heating or connection to the central water supply are not a matter of course. Mountain huts, which are sold also gladly as weekend houses, have sometimes only a fire-place and a well, from which clear water can be won. But it is precisely this equipment that makes a very special attraction for many buyers of weekend houses.

Condition: Windows, doors & Co.

The condition of the windows and doors is also an important purchase criterion. Find out whether renovation work is due in the near future and how high the investment is likely to be. The more information you gather, the more certain your purchase will be.

Dream property in the Alps: Kitzbühel

Valley view with classic wooden elements

Building permit and extract from the land register

A little caution is advised with weekend houses, which are offered at very low prices. Pay particular attention to the building fabric of these properties and enquire about any conditions, such as those imposed by the authorities responsible for the preservation of historical monuments. It is also important that you always ask to see the planning permission and, if the property is owned, the extract from the land register. There are weekend houses that have been built without permission. If you come to the attention of the authorities, in the worst case scenario you will have to demolish the weekend house and will not be able to claim any compensation.

Buy a farm: Country house in the green

Buying a farm – The decision to buy a farm is made by families as well as couples or singles in middle or older age, who want to change and appreciate the individual form of living in the midst of nature. We offer you farms in attractive rural locations.

Buying your own farm as a permanent residence or as a weekend home. You need to decide if you want to buy a property in need of renovation. These farms can often be purchased at a very reasonable price. Alternatively, there are properties that have already been refurbished by their previous owner and are in a modern and very good condition. These farms are usually ready for immediate occupation. However, you will have to expect a higher purchase price. This is especially true if the farm is in a very central location with a good infrastructure.

• Buy farm

Buy a holiday home: Live and rent

Holiday home & holiday apartment – The dream of a holiday home exists for many city dwellers. Whether it’s a house by the sea, in the warm south or simply a retreat in the countryside. However, there is a lot to consider when making such a big decision and you should plan well before you decide to take the big step.

Prices of €200,000 to €300,000 are quite common for smaller properties of 40 to 50 square metres of living space.

Modern property in the countryside or in holiday areas are often on offer. The perfect properties for those who want a quiet retreat. However, such an investment is by no means cheap and finding the right property is not easy. In addition, you should consider a few things before you decide to buy.

• Buy a holiday home

This is where we like to buy weekend houses

Which places are particularly popular? We have evaluated the current search queries of the Germans and evaluated the following top list of the most popular places in Germany, for weekend homes.

Sauerland: Weekend house in NRW

In fact, one of the most popular places in Germany is Sauerland. Located in North Rhine-Westphalia, the Sauerland is a real hotspot for holiday homes and weekend cottages for 17.93 million people who live in NRW alone.

North Sea: sea air and beach

Fresh sea air and quiet beaches. Along with NRW, the North Sea is another hotspot in Germany for the holiday domicile. Well deserved, because here you can find everything from culinary delicacies to entertainment, away from the tranquility of the beaches.

Eifel: Nature and National Park

Not much far from the Sauerland you find the Eifel. Rhine, Moselle, absolute nature. From the National Park and its tourism, to hiking through kilometers of trekking trails, the Eifel attracts especially the buyers who are also looking for outdoor activities.

Lower Saxony: North Sea, Netherlands …

Anyone who wants to travel from North Rhine-Westphalia to the North Sea and who is at the North Sea is in Lower Saxony. Thus, the state has gradually become the absolute region when it comes to retreat from the stressful everyday life.

Hesse: Retreat

Hesse is located in the middle of the most populous state NRW and the wealthy Baden-Württemberg, also sharing the northern Bavaria. This makes the state so popular and that is why it is also number 5 in the ranking.

Baltic Sea: Holiday apartments

Already the North Sea was very popular to buy a weekend house and of course it is also the Baltic Sea. If you want to rent a holiday home, you will find over 20,000 offers. Those who are looking for their own home, bet on their own weekend house.

Foreign property: Denmark, Switzerland and the Netherlands

Denmark, Switzerland and the Netherlands – many buy their weekend home in a nearby country. Mountains, sea air, sun, beach and sea: only a few hours from Germany are many dream destinations for holidaymakers and buyers.

Italy is not only one of the most popular destinations in Europe, because many decide to emigrate to this beautiful country. But not everyone can decide to take such a step, because in Germany lives the family and many memories are firmly connected with this country. If you are lucky enough to be able to afford another property abroad, then this would be the ideal alternative for you.

France: mountains, coasts and life

Every holiday you treat yourself to, you always spend in France? France almost feels like your second home? Have you ever considered buying a property abroad in France? Of course, such a decision needs sufficient consideration and must be weighed. We will help you with the decision and show you in this article online portals where you can find the most beautiful properties abroad in France and show you the most beautiful residential areas.

• Foreign property France

Spain / Majorca: Fincas

Spain is one of the most popular holiday destinations for Germans. No wonder, because here there is besides sun and beach also wonderful landscapes. Besides Mallorca, there are many other beautiful holiday destinations in Spain. However, if you are already sure that your foreign property should be in Mallorca, you can read our article that specializes specifically in Mallorca.

• Property Spain
• Property Mallorca

Italy: Tyrol, Milan, Lake Garda

Lake Garda is one of the most popular destinations in Italy. Not entirely improbable is the thought for holidaymakers who visit the same holiday destination in Italy every year to buy their own small holiday home here. They save not only the search for a suitable accommodation and have to worry whether this is then also available at the planned time, they also save a lot of money. Nevertheless, you should consider that a foreign property requires a certain care. At this point you should weigh up whether the purchase is worthwhile for you.

• Property Italy

Buying real estate: Tips from the investor (external)

Buying real estate but also investing in real estate requires a lot of knowledge and expertise. The best way to learn is to draw from the experience of professionals. Therefore, in conclusion, a recommendation for real estate beginners.

Newcomer Tips + Germany Comparison: Buying Real Estate

External guide (link opens in new tab):

• First property purchase
• Buying real estate: What to look out for?
• Buying mistakes
• Save taxes with real estate

Comparison of cities: Purchase prices in Germany (external)

In these individual guides to the major German cities are the important districts for real estate buyers, information on the infrastructure, as well as prerequisites for the purchase such as income, creditworthiness (credit rating), banks and equity. But much more important: mistakes, risks, rental yields and more. What is decisive for the purchase price and the valuation? Everything about location, building fabric, renovations, equipment and all that, free of charge.

External guides (link opens in new tab)

City / Purchase Price Current:

• Munich ~ 8,993 Euro / m²
• Frankfurt ~ 6,701 Euro / m²
• Stuttgart ~ 6,324 Euro / m²
• Berlin ~ 5,578 Euro / m²
• Hamburg ~ 5,507 Euro / m²
• Düsseldorf / Cologne ~ 5,470 Euro / m²

Leasehold instead of buying land – is leasehold really worth it?

Leasehold is a welcome alternative to the traditional purchase of land. The principle is very simple. The owner of a plot of land leases it to a house builder or buyer of the house standing on it. So there is a clear separation. What happens to the property: divorce guide. There is one owner who owns the land and one who owns the building on the land. This principle attracts great savings for land prices for the buyer and at the same time ensures regular cash income for the lessor again and again for a long and regular period of time. It is a good possibility with lack of building sites fast and favorably to the home of one’s own to come. However, there are also pitfalls hidden here.

No land costs but ground rent – costs at a glance

The principle of the ground lease includes the fact that you do not acquire a plot of land and therefore do not own one but still have to pay for it. Because with a ground lease you commit yourself to pay a certain amount to the owner of the land at regular intervals, i.e. to the lessor. It is similar to renting, only that here no living space is rented, but the land. This amount is called ground rent or ground rent and is between 4 and 8 percent of the actual purchase price of the land per year, depending on the size and location of the land.

Since you are the buyer and owner of the property on the land, a lease term is established for leases. This is stated in the lease agreement and decided between the parties. Here, there are common terms that are concluded in most cases. Mostly the terms range from 50 to 99 years. Very rarely, there are also terms of 25 years, but these should only be agreed upon if expressly requested. How long you want to lease a plot of land should be considered well in advance, because there are advantages and disadvantages for each term. With a lease term of 25 years, you will have large sums of money to raise over a short period of time. The advantage, however, is that this term will not outlast your own lifetime and you will therefore not leave any debts or contractual obligations to your children.

If you buy a property in Germany, you have to pay the so-called land transfer tax. Unfortunately, this is also levied on leaseholds, even if you do not buy the property. The amount of the land transfer tax depends on the value of the property and is calculated as a percentage of this value. It only has to be paid once and is due immediately after signing the contract, just as with a purchase. The same rates apply as for a sale.

Is the ground rent really worth it?

Is a ground lease worth it compared to a purchase? This question cannot be answered in principle, as the costs depend on the land prices. If these are high, the ground rent also rises sharply and leasing becomes more expensive. In general, one can only say that a lease is worthwhile if the ground rent is lower than the mortgage interest. It must be noted, however, that a lease usually binds for 99 years, so for a long period of time to a monthly or annual contribution is bound. In the lease agreements, an adjustment clause is agreed upon, which allows for an increase in the interest rate. This means that the interest rate can be adjusted every three years and therefore there is a risk that it will increase. With a loan, the risk of interest rates going up is much lower. You should therefore be aware of the conditions and think through a lease carefully.

Expiry of the lease – and now?

Before the lease period expires, it should be clear what is to happen to the land after the period expires. It is possible for the leaseholder to secure a right of first refusal and thus buy the land after the lease expires. However, if nothing is agreed, the tenant has the right to compensation for the value of the building at the end of the lease term. In return, however, he does not have to remove the building from the land. If the tenant does not pay the rent for a certain period of time or uses the land in a different way than agreed, a reversion occurs. This means that the land will revert to the lessor before the expiry of the lease term. However, all these provisions should be clearly set out in the leasehold agreement.

Land purchase & loan interest – costs at a glance

Buying land is comparatively more profitable. Firstly, you own the land when you buy it and don’t just ‘rent’ it through a lease. In addition, the buyer usually pays off the loan after 10 – 20 years and then owns the land debt-free and the loan interest remains over the entire term at the agreed level and does not increase, as with the lease. A leasehold is therefore only worthwhile in comparison to the purchase, if there is a high-interest phase. Otherwise you should fall back on alternatives. This includes, for example, the complete purchase of property and land together, which is ideal when the construction interest rates are low. So think carefully about which alternative is the best for you and which is available on the current interest rate market.

Legal situation – leasehold or purchase of land

From a purely legal point of view, the builder of a plot of land acquired by ground lease is almost equivalent to the buyer of a plot of land. He acquires the land from a private person, the public sector, a non-profit organisation or an ecclesiastical institution. Thus, the leaseholder is the owner of the land for a fixed period of time. The heritable building right continues to apply to him even if the property is foreclosed or even destroyed. He therefore has the right to sell, rent, bequeath and lend his leasehold, but even in the event of a change of ownership, the lease agreement does not change.

Generally speaking, the hereditary building right does not permit any land speculation, as the holder of the hereditary building right is obliged by the contract to build on the land. This right is documented in two land registers, the land register and the hereditary building land register. This is made to secure the builder. Once an amount has been agreed, the hereditary building right cannot be terminated. It expires only after the time specified in the contract, which is usually 99 years.

Top 10 Tips – How to find beautiful and affordable properties

The plot of land is the basis for building a house. So it should not only be well located and beautiful, but also meet some requirements. We have summarized the best tips for the search for the perfect building site for you.

https://www.instagram.com/p/BlI8nMLnRYp/?tagged=vacantlot

Tip 1: Acquire land by ground lease

This is a special case, because here you do not acquire the land by purchase, but by paying the ground rent. The land is thus rented, so to speak, but can be used and built on according to one’s own ideas. This so-called hereditary building right expires after an agreed period of time, which is usually 99 years. Such hereditary leases are usually granted by municipalities, churches or foundations. A good way to get a relatively cheap property and to design it according to his own ideas and wishes. You can find out more about ground leases in our article on the subject of acquiring land with a ground lease.

Tip 2: Acquire land from municipalities

When looking for the perfect plot of land, you should also definitely take a look at the website of the municipality in which you want to build. Many municipalities publish their own real estate offers and plots, which are usually even cheaper than those of brokers or private individuals. The brokerage commission is omitted, so you save money and municipalities work less profit-oriented, which is why the properties are often offered very cheap. So you might find a potential plot for your dream property, quite simply online.

Tip 3: Use gaps between buildings

Before new building land is developed in communities, they first try to get rid of the gaps between buildings. Such plots are not very attractive for developers, as they are usually narrow and not suitable for large detached houses. Such building gaps usually require a specially planned architect’s house. For those who are not afraid of such a solution, this is a great way to acquire cheap building land. Here even the advantage exists that these building gaps can have mad situations and lie thus in the proximity of many purchase possibilities, schools or green spaces. So not only do you have the opportunity for a great, unique home but also a great neighborhood where you may not have been able to find a vacant home and now simply use a vacant lot for it.

Tip 4: Move from the city to the country

For many an impossible notion, it seems more and more attractive when you take a closer look. Cities have many advantages, but the country life also has its advantages. In the countryside you can find comparatively very cheap properties and even in the suburbs, the properties are not as competitive as in the city. Especially when family planning is just around the corner anyway, the countryside shows many advantages for children as well. Safe streets, lots of opportunities to play, the great outdoors, and great schools. In addition, there are also great connections to the city in suburbs, so you are not completely excluded from this life.

Tip 5: Let relationships and contacts play

From his own circle of acquaintances you often get the best insider tips, especially in the region, because someone knows someone who knows someone and very quickly you get insider tips and great recommendations for companies, construction financiers, brokers or even free land. Also, the experiences of friends who have already built and have gone through the same thing can be very valuable and tips from all sides, especially with such a large project, you really should not do without.

Tip 6: Search classified ads yourself

Many great properties and real estate are not on well-known portals, such as Immobilienscout24 or similar to find, so it is also worth in free portals to look. Portals like ebay classifieds but also newspapers and other portals can be helpful. So spending a Sunday afternoon with newspaper ads can already lead them to their dream home.

Tip 7: Resort to property development sites

Property developers buy suitable building land and sell it on to their customers. These then undertake to build a house with the same developer and receive a favourable plot of land in return. Who had no particular house in mind, can use these offers well, because then the choice of the developer is unnecessary. However, one should not make a hasty choice in the developer, because with this they still have a while to do and the whole house construction runs through him. So one should get well informed beforehand.

Tip 8: Participation in a builder’s association

A community of builders is a relatively simple principle. Here, several builders – i.e. people who want to build a house – join forces and jointly acquire a plot of land on which they share the land transfer tax and the development and surveying costs. This is usually a large plot, because each of the builders needs enough space to build his house. Such large plots are often not very sought after, as they are far too large for the normal ‘house builder’. Accordingly, the prices are relatively cheap. But here you should make sure that the builders get along well with each other, because they will be future neighbors.

Tip 9: Start a search yourself

Many owners of building plots own plots of land, but do not sell them because they do not need it financially or because they are afraid of the effort. So if you have a certain plot in mind that is simply not sold, you can find out the name and contact information of these people relatively quickly at the city. Asking does not hurt and perhaps one has luck and the building plot is really not used and one can acquire it simply directly with the owner. A rather unusual but often effective way to develop a plot of land, whereby the effort itself is relatively high, but for the perfect property you do this with pleasure.

Tip 10: Acquire land from foreclosure auctions

A rather questionable, but still very effective method. These properties are usually cheap and often very well located. Unfortunately, someone is forced to sell, however, it is for seekers a great opportunity to acquire a super plot. Beforehand, however, one should inform oneself exactly about the property, the bidding and the price. The property should be inspected and approved and you should be absolutely sure that it is the perfect property before you put your money on it. Before the auction, you should set a fixed budget that you do not exceed when bidding, otherwise there may be unpleasant surprises.