Dream building plot for spacious single-family home in historic villa location

When purchasing a newly built property, a building description is attached to the certified purchase contract as an essential part.

When buying a property, you must expect the following ancillary acquisition costs: Land transfer tax, notary and land registry fees, brokerage fees and bank charges.

The "hereditary lease" is prohibited by law in Germany today. Colloquially, however, the "Erbbaurecht" is often referred to as "Erbpacht". A "hereditary building right" is a right equivalent to real property which is formed in a separate "hereditary building right land register".

The risk profile of the property should be comprehensively assessed as part of a "due diligence", i.e. a simple consideration of the gross yield (annual rent : sales price x 100) is certainly not sufficient. This involves a large number of assessment steps, which are only presented as examples in the context of this blog.

The exact amount of equity to be contributed depends on the financial and income situation of the potential buyer as well as the location and risk profile of the property.