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.
S
Sinus19867 Sep 2016 10:59Nice, we lived directly in Reiskirchen until three years ago and are therefore quite familiar with the area.
However, be aware that the traffic through Reiskirchen, especially in the mornings and evenings, can be quite problematic due to the railway crossing.
So, the 7-minute drive can easily turn into 10 to 15 minutes. But maybe you will take a different route.
However, be aware that the traffic through Reiskirchen, especially in the mornings and evenings, can be quite problematic due to the railway crossing.
So, the 7-minute drive can easily turn into 10 to 15 minutes. But maybe you will take a different route.
Thank you, Sinus1986, yes, I am aware of that. But since my son will continue attending daycare in Großen Buseck, I would have to drive through Beuern anyway, so passing through Reiskirchen wouldn’t be an issue for me.
Svetta16, thank you for your response. It all makes sense. Our daughter goes to an inclusive primary school in Gießen, so not in our local town either. Her friends are scattered throughout the district, and she doesn’t have any contacts with children in our current neighborhood. Whenever she meets someone, I have to drive her there. I’m also not sure if we will get to know people in Bersrod that would help her make more friends. You never really know. I just know that quite a few young families already live there. It would be something to take a chance on. At the moment, I feel very uncertain. We’ll see how things develop.
Svetta16, thank you for your response. It all makes sense. Our daughter goes to an inclusive primary school in Gießen, so not in our local town either. Her friends are scattered throughout the district, and she doesn’t have any contacts with children in our current neighborhood. Whenever she meets someone, I have to drive her there. I’m also not sure if we will get to know people in Bersrod that would help her make more friends. You never really know. I just know that quite a few young families already live there. It would be something to take a chance on. At the moment, I feel very uncertain. We’ll see how things develop.
I can only partly agree with all of this. Certainly, the value will initially decrease. That is normal. I don’t know the area, but if there is no sign of urban exodus, the value should still increase.
I come from a village where my dad built a house about 30 years ago. Houses there are occasionally sold, and they definitely go for double what they cost back then.
Additionally, you should consider that you probably paid significantly less for the land than you would in a city.
Prices in cities tend to rise more than in rural areas, but I strongly doubt that your house will be worth less after 30 years and normal market development than it is today.
I come from a village where my dad built a house about 30 years ago. Houses there are occasionally sold, and they definitely go for double what they cost back then.
Additionally, you should consider that you probably paid significantly less for the land than you would in a city.
Prices in cities tend to rise more than in rural areas, but I strongly doubt that your house will be worth less after 30 years and normal market development than it is today.
S
Sinus19867 Sep 2016 12:21PhiTh schrieb:
I can only partly agree with all of this. Of course, the value will initially drop. That’s normal. I’m not familiar with the area, but if there’s no sign of urban exodus, the value should still increase.
I come from a village where my dad built a house about 30 years ago. Houses there are sold occasionally, and they’re definitely going for double what they cost back then.
You also have to keep in mind that you probably paid significantly less for the land than you would in a city.
Certainly, prices tend to rise more in cities than in rural areas, but I don’t believe for a second that your house would be worth less after 30 years and normal development than it is today! I agree with that!
PhiTh schrieb:
Occasionally, houses are sold here, and that’s guaranteed to be at twice the price they originally cost.
Okay. If you guarantee that the house the original poster will buy in Bersrod will be worth double in real terms in 30 years, then you surely won’t have any problem with the original poster including a corresponding notarized clause protecting their interests in the purchase contract, right?
To keep it brief: if you sign that, you probably wouldn’t be able to sleep peacefully for 30 years—and with good reason.
@DanielaS: This is a village through and through, regardless of the motorway (highway) connection. If you like living there, it’s an option. However, property value retention is catastrophic there; that needs to be said harshly. It might only make sense if you invest less capital, resulting in a smaller loan and interest payments, which means you can better tolerate the higher depreciation. On the other hand, you also have free capital available to spend on more important things.
In my opinion, the key question isn’t whether it retains value but whether you actually want to live there or if the location involves compromises—for example compared to a residential area in GI.
Best regards
Dirk Grafe
What exactly is your motivation for buying a house?
Do you simply want it as an investment (and because you currently have extra money)?
Or is it more about increasing your quality of life (more space, a garden, or similar)?
In the latter case, in my opinion, it’s acceptable to buy in a “less desirable” location, since you will benefit from the space, garden, etc. for at least the next 15 years.
Nonetheless, with both options, it’s worth considering what will happen when both children move out (would you then live there alone?)
and if neither child wants to live in the house in 30, 40, or 50 years (or what if both want to live there).
Do you simply want it as an investment (and because you currently have extra money)?
Or is it more about increasing your quality of life (more space, a garden, or similar)?
In the latter case, in my opinion, it’s acceptable to buy in a “less desirable” location, since you will benefit from the space, garden, etc. for at least the next 15 years.
Nonetheless, with both options, it’s worth considering what will happen when both children move out (would you then live there alone?)
and if neither child wants to live in the house in 30, 40, or 50 years (or what if both want to live there).
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