ᐅ Additional Costs When Purchasing a Plot of Land – Property Tax?

Created on: 15 May 2016 01:09
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Henrik0817123
Hello,

we are currently considering building a new house, and I have just learned that besides the additional costs when purchasing a plot of land and the usual monthly utility costs for energy, water, waste, etc., there is also the so-called property tax...

The calculation doesn’t seem straightforward and varies depending on the location, but is it theoretically possible that this could amount to several hundred euros per month?

We plan to build about 160 sqm (1,720 sq ft) of living space over two floors on a 700–900 sqm (7,535–9,688 sq ft) plot in North Rhine-Westphalia (Essen, Wuppertal) – I hope I might have made a mistake somewhere in my calculations... If not, this could really be a dealbreaker for many, since that would mean substantial additional costs?
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Henrik0817123
15 May 2016 12:47
Examples don’t help me if they don’t include the square meter numbers. Is this about the value of a house including the land and the rent it generates?

I just want to rule out that you would get several hundred euros per month based on my example above. There must be a simpler way to calculate this; it can’t be that complicated if you don’t own a house yet or haven’t dealt with this before.

Who can help me?
Uwe8215 May 2016 12:59
It really varies a lot and is often hard to understand, but it usually shouldn’t exceed 1000€ per year.
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HilfeHilfe
15 May 2016 13:10
Henrik0817123 schrieb:
Examples don’t help me if they don’t include square meter figures. Are we talking about the value of a house including the land, in terms of the rent it could generate?

I just want to rule out the possibility of paying several hundred dollars per month based on my example above. There must be a simpler way to calculate this; it can’t be that complicated, especially if you don’t own a house yet and haven’t dealt with this before.

Can anyone help me?

From Tuesday, feel free to contact the city or municipality.

Do you all include other additional costs as well? Water/sewer/stormwater charges, chimney sweeping, building liability insurance, reserves for the house, etc.
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T21150
15 May 2016 13:48
Henrik0817123 schrieb:
Examples don't help me if there are no square meter figures included. Is the question about the value that a house including the land generates as rent?

The square meter figure is less important. It also depends on the location, purchase price, and so on. A 2000 m² (21,500 sq ft) plot in MP can (and probably will) have lower property tax than a 500 m² (5,400 sq ft) plot in NRW.

The valuation method for the standard value is not very transparent. Just use search engines and read up on it yourself.

Again: The standard value is a value recalculated from Deutsche Marks based on some formula I don’t know; it refers to what it all would have cost around 1960. It also relates to the construction cost of the house. Here, you can give foolish, smarter, or appropriately informed estimates...

Best regards,
Thorsten
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Caspar2020
15 May 2016 18:00
As a general rule, you can estimate €2.50 per square meter (approximately $2.70 per square foot) of living space for operating and additional costs. So, for your 160 square meters (approximately 1,720 square feet) of living space, that means €400 (about $430). This also includes property tax. However, considering the location in NRW and the targeted plot size of 700-900 square meters (approximately 7,535–9,690 square feet), I would recommend budgeting €2.75 (about $3.00) per square meter, which comes to €440 (about $470) per month.
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nordanney
15 May 2016 19:56
The topic of property tax is actually quite negligible since you either rent a large apartment/house and pay the property tax through your service charges or you own the apartment/house and pay the property tax directly.

To owe around €1,000 per year (approximately $1,100) you generally need to have a house, which is beyond the scope of most users here.