Hello everyone,
I am new to this forum and hope someone can help me.
My husband and I, along with our two children, returned from Canada about a year ago and are currently renting near Gießen. We have settled in well and would like to buy a house with our own capital. We have found a plot in a village with around 800 residents, approximately 10 km (6 miles) from Gießen, with very good access to the A5 highway towards Frankfurt and otherwise just a few minutes’ drive from everything. However, there is no significant local infrastructure, and the building area has been developed for about three years but is not yet fully sold.
We have spoken to several people who believe we are making a mistake building in such a small village because the property value will not hold up in the long term. Since we want to leave something of value for our children, we are now wondering if this is the right decision.
Currently, we live in a community with about 12,000 residents, just 5 km (3 miles) from the other location. I feel uncertain and worry that we might be making a mistake, but the houses in our current community are all quite old and almost unaffordable, which is why we started looking elsewhere.
What advice can you give? It would be great if you could brainstorm with me a bit. Because of our 10 years living in Canada, we unfortunately no longer have experience with how things work in Germany. Things were much simpler there when it came to real estate.
Thanks in advance.
I am new to this forum and hope someone can help me.
My husband and I, along with our two children, returned from Canada about a year ago and are currently renting near Gießen. We have settled in well and would like to buy a house with our own capital. We have found a plot in a village with around 800 residents, approximately 10 km (6 miles) from Gießen, with very good access to the A5 highway towards Frankfurt and otherwise just a few minutes’ drive from everything. However, there is no significant local infrastructure, and the building area has been developed for about three years but is not yet fully sold.
We have spoken to several people who believe we are making a mistake building in such a small village because the property value will not hold up in the long term. Since we want to leave something of value for our children, we are now wondering if this is the right decision.
Currently, we live in a community with about 12,000 residents, just 5 km (3 miles) from the other location. I feel uncertain and worry that we might be making a mistake, but the houses in our current community are all quite old and almost unaffordable, which is why we started looking elsewhere.
What advice can you give? It would be great if you could brainstorm with me a bit. Because of our 10 years living in Canada, we unfortunately no longer have experience with how things work in Germany. Things were much simpler there when it came to real estate.
Thanks in advance.
Hello Daniela,
It’s quite simple: in popular areas, there is high demand and usually at least stable property values or even appreciation. In these areas, there are more buyers than available plots of land, mostly due to the general infrastructure.
In the development area you are interested in, there are fewer buyers than available plots, meaning demand is low. It can be assumed that property values in this area will not hold up compared to more popular residential locations and will probably decline unless demand increases due to improved infrastructure or other value-boosting factors (for example, if many new jobs are created locally) over the next 30 or 40 years. This cannot be predicted with certainty, but it does not sound very likely, so people tend to live or buy there only if they really want or have to, and anything gained in terms of value is a matter of luck.
Therefore, as a lasting investment or for value appreciation, it is rather not recommended. However, if the location suits simply for "living it down," it can still be purchased. Still, the house value in 30-50 years will probably not be zero if it is maintained regularly—but there remains a residual risk that the property could lose significant value if demand continues to decrease and people move away.
This isn’t necessarily connected to a "village" setting—some villages have an abundance of building plots available, while others have more demand than they can or want to supply.
Best regards,
Dirk Grafe
It’s quite simple: in popular areas, there is high demand and usually at least stable property values or even appreciation. In these areas, there are more buyers than available plots of land, mostly due to the general infrastructure.
In the development area you are interested in, there are fewer buyers than available plots, meaning demand is low. It can be assumed that property values in this area will not hold up compared to more popular residential locations and will probably decline unless demand increases due to improved infrastructure or other value-boosting factors (for example, if many new jobs are created locally) over the next 30 or 40 years. This cannot be predicted with certainty, but it does not sound very likely, so people tend to live or buy there only if they really want or have to, and anything gained in terms of value is a matter of luck.
Therefore, as a lasting investment or for value appreciation, it is rather not recommended. However, if the location suits simply for "living it down," it can still be purchased. Still, the house value in 30-50 years will probably not be zero if it is maintained regularly—but there remains a residual risk that the property could lose significant value if demand continues to decrease and people move away.
This isn’t necessarily connected to a "village" setting—some villages have an abundance of building plots available, while others have more demand than they can or want to supply.
Best regards,
Dirk Grafe
Hello Dirk, thank you very much for your detailed response. That was more or less what I had in mind. We really like the place, but I am genuinely concerned about the infrastructure and social life.
Additionally, we have a daughter with a physical disability, and we don’t know if she will ever be able to drive. The thought of her being stuck in the village is not very reassuring.
At the moment, I am leaning more towards buying an existing property in our current area and renovating it accordingly. I believe that would be the better solution—not cheaper, but definitely better.
Thanks again.
Additionally, we have a daughter with a physical disability, and we don’t know if she will ever be able to drive. The thought of her being stuck in the village is not very reassuring.
At the moment, I am leaning more towards buying an existing property in our current area and renovating it accordingly. I believe that would be the better solution—not cheaper, but definitely better.
Thanks again.
S
Sinus19867 Sep 2016 09:33Hi, may I ask where you are planning to build? We are also from the area near Gießen and have already secured a plot close to Grünberg with excellent access to the A5 highway. From my perspective, good motorway access is invaluable, especially since base prices for plots near highways are likely to keep rising in the foreseeable future... Flexibility and mobility will become major cost drivers... So – if the access is good, go for it!
Hello Sinus1986, we have reserved a plot of land in Bersrod, in the municipality of Reiskirchen. The connection to the A5 highway is absolutely ideal, about 7 minutes by car. That’s why we thought the price should definitely increase or at least stay the same. The municipality also offers a child allowance to encourage young families to move there.
Hello Daniela,
I’d like to add another point: the value of a house as part of an inheritance should be considered relatively. If it is definitely going to be sold, the price development should be closely monitored. If the option exists that one of your children will live there permanently, the situation changes. In that case, the value of a fully paid-off home and the “only” ongoing costs should be considered higher. The same applies if there is the option of renting it out. A good friend arranged it similarly—his children inherit the paid-off house in the suburbs of Berlin. Whether they live there themselves or rent it out (and thereby have a steady additional income) is up to them.
Due to its proximity to GI, I personally don’t think the property will lose value. At the moment, the trend is actually toward rural areas with good access to urban centers, and you have that. Those who want a big city or city center lifestyle choose that. Those who move to the outskirts prefer peace, while still having infrastructure within reach.
The only tricky point is your daughter. But the question is how things are at her current place of residence. Is her mobility there secured in the long term?
I’d like to add another point: the value of a house as part of an inheritance should be considered relatively. If it is definitely going to be sold, the price development should be closely monitored. If the option exists that one of your children will live there permanently, the situation changes. In that case, the value of a fully paid-off home and the “only” ongoing costs should be considered higher. The same applies if there is the option of renting it out. A good friend arranged it similarly—his children inherit the paid-off house in the suburbs of Berlin. Whether they live there themselves or rent it out (and thereby have a steady additional income) is up to them.
Due to its proximity to GI, I personally don’t think the property will lose value. At the moment, the trend is actually toward rural areas with good access to urban centers, and you have that. Those who want a big city or city center lifestyle choose that. Those who move to the outskirts prefer peace, while still having infrastructure within reach.
The only tricky point is your daughter. But the question is how things are at her current place of residence. Is her mobility there secured in the long term?
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