Good day,
I hope I have posted in the right subforum.
I am planning to build a house on my own land in Hessen at some point.
I often encounter the same issue:
I do not want to acquire a leasehold property (ground lease). The land should belong to me "completely."
Some listings also mention that the property is leasehold.
Here are my specific questions:
Can a purchased plot of land that was NOT acquired as leasehold still be subject to expropriation?
How can you tell if a property might be leasehold, other than it being explicitly stated in the listing? I don’t want to waste valuable time in inquiries only to later realize that although it is not literally mentioned, there is some kind of "code" or other indication in the listing that experts recognize as a leasehold reference, meaning it actually is leasehold.
How does property law generally work in Germany? Does it vary from state to state or is it uniform?
Can it generally be said that property rights in Germany are better or worse compared to neighboring countries such as Austria, Switzerland, or France?
And the most important question: how can I be sure that the land I purchase belongs solely to me?
Best regards
alwayssearchin
I hope I have posted in the right subforum.
I am planning to build a house on my own land in Hessen at some point.
I often encounter the same issue:
I do not want to acquire a leasehold property (ground lease). The land should belong to me "completely."
Some listings also mention that the property is leasehold.
Here are my specific questions:
Can a purchased plot of land that was NOT acquired as leasehold still be subject to expropriation?
How can you tell if a property might be leasehold, other than it being explicitly stated in the listing? I don’t want to waste valuable time in inquiries only to later realize that although it is not literally mentioned, there is some kind of "code" or other indication in the listing that experts recognize as a leasehold reference, meaning it actually is leasehold.
How does property law generally work in Germany? Does it vary from state to state or is it uniform?
Can it generally be said that property rights in Germany are better or worse compared to neighboring countries such as Austria, Switzerland, or France?
And the most important question: how can I be sure that the land I purchase belongs solely to me?
Best regards
alwayssearchin
OWLer schrieb:
@Tarnari Just out of curiosity, since we have also considered building on a leasehold basis. Is there a clause linking the ground rent, for example, to the inflation rate? Every five years, the ground rent can be adjusted according to the consumer price index. This is apparently the usual practice for church-owned land.
This can mean an increase or a decrease. It is quite common that no adjustment occurs for many years, and then suddenly there is a significant increase. I once heard about an elderly lady who paid the same rent for decades and then had to pay 300% more (or so) from one day to the next.
But that’s probably just sensational news.
N
nordanney8 May 2020 22:48OWLer schrieb:
Is there a clause that ties the ground lease, for example, to the inflation rate?Usually linked to the CPI (Consumer Price Index).A
alwayssearchin14 May 2020 09:16I would like to thank everyone again for their responses. Simply by participating in this thread, various aspects have been raised and discussed that address exactly the questions I have.
Of course, I appreciate this answer very much. However, I find your assessment of 0% somewhat unrealistic. Furthermore, you mention in the following sentence that you would then "only" lose the land and house. Excuse me? What else do I have on my property with a house, besides—not even including—the treasure chest with gold coins that Tassimat referred to?
I would like to respond to your last question
Further away and more undeveloped = cheaper but higher risk regarding new developments (and possibly even expropriation?)
Closer to the center = more expensive but (supposedly) higher security against expropriation and new developments.
Best regards
alwayssearchin
nordanney schrieb:
The probability is 0%. The obstacles are extremely high, and you only lose the land and house (regardless of the legal form) in exchange for the market value. So, no financial loss.
By the way, highways or rail lines are not simply built through residential areas in cities and towns.
Of course, I appreciate this answer very much. However, I find your assessment of 0% somewhat unrealistic. Furthermore, you mention in the following sentence that you would then "only" lose the land and house. Excuse me? What else do I have on my property with a house, besides—not even including—the treasure chest with gold coins that Tassimat referred to?
I would like to respond to your last question
nordanney schrieb:Referring to my first post in this topic: The goal is to acquire information in the long term so that I can purchase land without leasehold and subsequently build a multi-family house with as little risk as possible.
What do you actually want? To build, to buy, to satisfy curiosity?
HilfeHilfe schrieb:Thank you very much for your response. I have also considered this. I would even accept the additional travel time. However, based on the posts I’ve read, I can deduce the following connection:
Solution approach: move 50 km (30 miles) away and buy
Further away and more undeveloped = cheaper but higher risk regarding new developments (and possibly even expropriation?)
Closer to the center = more expensive but (supposedly) higher security against expropriation and new developments.
Best regards
alwayssearchin
N
nordanney14 May 2020 09:45alwayssearchin schrieb:
However, I find your assessment of 0% somewhat unrealistic.You are completely wrong there.alwayssearchin schrieb:
Furthermore, you mention in the following sentence that "only" the land and house would be lost.
Excuse me? What else do I have on my property with a house, not even the treasure chest with gold coins Tassimat mentioned belongs to me.Nothing else. But you will be generously compensated for the value of the house and land. You suffer zero loss! (except for the move – but then you get a new house)alwayssearchin schrieb:
so that acquiring land without a leasehold and subsequently building a multi-family house is possible with as little risk as possible.Both types of land pose exactly the same risk. There is no difference at all.alwayssearchin schrieb:
Farther away and mostly undeveloped = cheaper but higher risk concerning new development (and maybe even expropriation?)The risk of expropriation there is also practically zero, unless you build a farm. In standard zoning plan areas, expropriation does not occur.alwayssearchin schrieb:
Closer to the center = more expensive but (supposedly) higher security against expropriation and redevelopment.Yes, more expensive, but you can also expect higher rental income. Security against expropriation is the same.What exactly do you mean by "risk concerning new development"? I don’t understand that.
In summary: You have an irrational fear of expropriation and leasehold rights. Where does this fear come from? The former practically does not exist, and the latter is not a disadvantage.
If I am already thinking about building a multi-family house, I have 100 other, much more important questions to consider. You might want to think about that.
M
Matthew0314 May 2020 09:49alwayssearchin schrieb:
Farther away and mostly undeveloped = cheaper but higher risk regarding new developments (and possibly even expropriation)?
Closer to the city center = more expensive but (supposedly) more secure against expropriation and new developments. With this way of thinking, you will never build or buy... where does this completely unnecessary fear of expropriation come from? Were you raised in Germany? Then I will never understand it.
You are only standing in your own way and blocking any potential desire to build a house. All prospective builders weigh up factors: distance to workplace, cost of land, cost of construction, proximity to family, considerations about children, do I want a hillside location, how is the neighbor, semi-detached or detached house, how far can I commute, and many more... and in 99.9999999% of cases, the question never arises: where am I more likely to be expropriated?
With this “excessive fear,” you will never be able to build or buy.
By the time you have figured out whether eggs are also laid on the Wollmichsauweg plot and how high the chance is that these will be taken away by the government, the Müller family will already have bought, built, and moved in.
Be clear about where your fears come from, overcome them, and then things can really happen.