Representative country villa with large granny annexe

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 buyer can often incorporate his or her own ideas regarding the interior and room design.

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.

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

There are three standardised methods for determining the value of real estate in Germany: the comparative value method, the capitalised earnings value method and the asset value method. The aim of the valuation is to determine the market value of the property.