The building boom is unstoppable in germany. The high level of interest in real estate means that land is in short supply across germany. Especially in and around large metropolitan areas, it is difficult to find building land for a house. If the search is ultimately to be crowned with success and prospective buyers do not want to invest excessive costs, tomorrow's builders should heed the most important tips for acquiring properties.
Consult real estate agents on the land issue
Presumably, finding the perfect property is a lifetime task. Anyone who wants to make this search easier should call on the support of competent experts. Good real estate agents are happy to assist their clients in finding suitable building land. Real estate agents are familiar with the local real estate market and building laws. However, this service costs money. Depending on the state, a real estate agent charges 3.57 to 7.14 percent of the complete purchase price in commission. A request for a plot of land from the municipality may also be successful. Up-and-coming communities are happy to sell land developed as residential areas at comparatively low prices. The advantage for prospective buyers: there are no additional fees other than the purchase price for building land owned by a municipality.
A successful property search on the internet
In the meantime, the internet has also become a popular platform for looking for building sites on real estate exchanges. Several national and local real estate exchanges are active on the world wide web, presenting property offers to real estate agents and private individuals. The advantage of this search method is that interested parties can select their favorite building land from the comfort of their own home. In addition, the plots presented online are usually described in detail and accompanied by photos. Developer land is sold mainly in metropolitan areas where there is a shortage of building land. Potential builders are forced to purchase the selected plots from the respective developer. This procedure is disadvantageous in that prospective buyers are usually contractually obligated to have the house automatically built by this builder.
Pay attention to development plans and land register entries
Once the buyers have made their decision, they should make detailed inquiries about the plot of land. Before entering into a purchase agreement (important content in the real estate purchase agreement), it is essential to clarify whether the land ownership is actually available as building land. Therefore, future builders should first look at the development plan of the relevant municipality. This document provides information on how many stories and which roof shapes are permitted for a house. Furthermore, the development plan prescribes minimum distances to neighboring land and the shape of the owner-occupied home.
It is also important to keep an eye on the land register. This document provides information about crucial facts such as a possible right of first refusal by the municipality, existing rights of way or possible mortgage encumbrances. Further attention should be paid to the question of the extent to which the property is already developed. This question deals with issues such as connecting the land to the energy and water supply or sewerage system. If the land has not yet been developed, prospective house builders can expect additional costs of several thousand euros. In addition, a development may take a long time to complete. In turn, undeveloped land has a great advantage and is usually relatively inexpensive.
Does the living environment meet your expectations??
Further attention is paid to the condition of the building site. Prospective buyers should take a close look at the building site. Plain areas need a different development than land on a slope. If a high groundwater level is present, a particularly secure basement waterproofing system may be necessary. A site investigation provides information about such circumstances. These investigations are usually carried out by geotechnical offices. In order for the building site to actually meet all expectations, the living environment should also be inspiring. Future builders are asked to take a closer look at the transport links, leisure facilities in the surrounding area and the infrastructure. Companies with a strong odor or noise in the immediate vicinity can also significantly reduce the pleasure of living there. Potential property buyers should pay attention to these factors.
Contaminated sites – a sensitive issue
The view of old burdens of land ownership also flows into the decision-making process. Contaminated sites are environmentally hazardous materials such as oil, electronic waste or chemicals. Such contaminated sites are usually the remains of old commercial or industrial properties. Furthermore, old burdens occur on land property on which waste was once stored. Builders can exclude such contaminated sites by submitting appropriate inquiries to the building authority or the relevant register of contaminated sites. If there are justified doubts, prospective buyers should take the precaution of having a ground survey carried out. Although associated trial wells are subsidized by up to 1.500 euros can save buyers from making a momentous decision in certain circumstances.
Buying land – purchase price and additional costs
In addition, the financial question must be clarified. The purchase of a plot of land is not covered by the purchase costs alone. The following additional costs are also incurred:
- For notary costs, buyers of a plot of land must budget around 1.5 percent of the purchase price for the land register as well as the notary.
- If a real estate agent is used, brokerage fees of 3.57 to 7.14 percent of the property price will be charged.
- The state automatically demands land transfer tax on the purchase of the property. This tax differs from state to state and varies from 3.5 to 6.5 percent.
A possible alternative for a classic land purchase is the hereditary building right. In this case, the house builder leases the land from a so-called hereditary lessor. These leasehold lenders are mostly religious institutions that do not charge for the acquisition of the landed property. However, builders must pay a ground rent for the term of the lease, which is usually 99 years. This interest rate usually varies between four and six percent of the land price.