Buying a land plot in Germany

At all times, the land was the most promising object for investment. Firstly, it reliably protects capital from inflation, and secondly, its shelf life is not limited by time frames. Today this natural resource is in special demand in economically and politically stable countries. In particular, a land plot in Germany is the dream of all those who intend to build a cozy house for permanent residence or organize their own farm.

Why is it worth buying a land plot in Germany

As one of the main economic pillars of the European community, Germany is a stable and reliable state also in terms of legislation and the protection of the rights of civilians. All real estate, including land plots, is included in special registers - land books.

Any person, regardless of whether he is a resident of the country or a foreigner, has the right to acquire this or that object. This applies to all types of real estate:

• commercial;
• non-profit;
• land plots.

A list of the main advantages of acquiring land in Germany will help to make the final decision in favor of the purchase:

• the ability to choose a region and settlement with the lifestyle that appeals to you;
• saving money - a land plot will cost several times cheaper than an apartment or a ready-made house;
• a wide range of land use options: building a house or a mini-hotel, organizing a farm, using land for growing crops;
• living in a rural area with a quieter life and a cleaner environment;
• the possibility of building a house according to your own project.

However, it should be borne in mind that the ownership of land in Germany does not allow a foreign citizen to automatically obtain a residence permit or permanent residence. Actually, the legalization procedure itself is not simplified. The only thing you can count on is a long-term multiple-entry visa.

How to find a suitable site

The first step is, of course, the choice of a land plot. Please note that its area and location should fully correspond to the purposes for which you will use it. There are several ways how to find the property you need: you can deal with this issue on your own, or you can resort to the help of intermediaries who are well familiar with the peculiarities of the German land market.

Broker assistance

Contacting an intermediary can rightfully be considered the simplest and at the same time the most expensive way. This is due to the fact that the broker will take care of all the organizational issues:

• search for suitable sites;
• verification of documents on the allotment;
• preparation of a contract;
• registration of all papers and other necessary actions.

However, he will ask for a rather substantial reward for his work.

Based on where exactly the object of purchase will be located - in Saxony, Westphalia or Bavaria - the cost of intermediary services can be estimated at 3.57-7.14% of the transaction amount.

The advantage of this search option is the fact that the broker knows not only where the best plots are located, but also has information regarding the specifics of construction on them. More often than not, information of this order is invaluable compared to the price that the intermediary has to pay.

We select a site through the developer

In large cities of the country, where the building density is extremely high, many construction companies seek to earn extra money by selling land plots. To begin with, they buy out the territory where the buildings are located, which will be demolished, and then they are looking for a buyer for this or that site.

You can buy such a land object at a fairly reasonable price. However, it should be remembered that favorable conditions will be available only on condition that you sign the contract for the construction of the house with this particular contractor. And if the latter has managed to recommend itself from the best side, there is nothing bad for you in this.

Newspaper advertisements and assistance from city officials

An excellent option for solving the issue related to the purchase of a land plot would be a daily viewing of local newspapers, which publish a huge number of advertisements, including those for the sale of land.

The fact is that locals quite often solve pressing issues through the press. Therefore, if they urgently need to sell housing, they first put an ad in the newspaper, and only then turn to a broker. You can buy printed publications at any kiosk, at railway stations, in the metro, at the post office.

To buy land in Germany, you can go directly to the city administration. We'll have to tell you exactly why you need a land plot - to build a house or run a business. This way of resolving the issue can be considered the most profitable, since you do not have to pay either resellers or a broker - at the mayor's office you will be connected directly with the owner of the real estate.

Search on the Internet

The World Wide Web can be called a treasure trove of proposals for the sale of objects for construction. The leader in this segment is ImmobilienScout. Here you can find an object in any federal state by the name of the city and even by the postal code.

The resource makes it possible to sort the plots by price and even by the type of proposed development. However, keep in mind that not only individuals, but also intermediaries post their offers here. If you find what suits you, do not hesitate and immediately get in touch with the author of the ad.

Moreover, you should not limit your searches only to specialized sites - you can use the search engine and keywords: Grundstück kaufen or Neubaugebiet.

Buying real estate at forced auctions

Forced auctions in Germany are considered a mortgagee's nightmare and a buyer’s dream. The procedure looks like this: let's say you took out an apartment on credit, but for some reason you cannot pay for your obligations to the bank. In this case, the lender applies to the court, which initiates the process of compulsory sale of the loan object.

According to statistics, annually through the Zwangsversteigerung (forced auctions) about 30 thousand real estate objects go.

Information about where and when these "sales" will take place is published in local newspapers or websites. You can find them at the request of Zwangsversteigerung. However, in this case, you need to be very careful, since the main information on the object is announced directly on the day of the auction.

Long term rental - Pacht

An alternative option to buying a land plot for a long period of time can be considered quite good. In Germany it is called Pacht. Let's say you are interested in land on Lake Constance, but you don’t have enough funds to purchase it. In this case, there is an opportunity not to buy this plot, but to rent it from the owner for 99 years.

The annual fee for the use of such land will be paid in the amount of 4-6% of its assessed value. In these cases, landlords are most often religious communities. It should be remembered that the lease of real estate, including land, in Germany is regulated at the legislative level to the smallest nuances.

What to consider when buying a plot

It is best to choose a land plot directly on the spot. Select the city in which you want to make a purchase, make an appointment with the property owners.But before you agree, there are a few things to check:

• ask the city hall for a building plan. The documents provided to you must indicate the requirements for the future building - for example, its maximum height and the color of the facade. This information will be useful not only for you, but also for the construction company, which will undertake the construction of the facility. Please note that the size of the structure can significantly affect its architectural form;
• connection to communications. If you have to pull sewers, electricity and water to the site, this will result in serious costs (about 5-10 thousand euros additionally);
• checking the land for the possibility of erecting structures on it. There can be a lot of possible surprises here: underground waters, filled up ravines, deposits of stones. To begin with, it will not be superfluous to obtain a geotechnical conclusion from the relevant bureau in the given federal state;
• clarification of information regarding what was on this land earlier. Perhaps a long time ago there was an old city well here, which everyone has already forgotten, but which will be found when digging a foundation pit and will create a lot of problems;
• the site that was under an industrial enterprise deserves special attention - the question of what was here before should be the first on your list. For example, if the land in this area is saturated with oils or harmful substances, this will cause a continuous headache, both literally and figuratively. If you have any suspicions, be sure to order an examination of a soil sample. However, in this case additional drilling for sampling can cost about a thousand euros;
• checking the site for debts. This is especially true in relation to areas where buildings for demolition are located.

How much will the purchase cost

How much is land in Germany worth? The price will depend on the size of the plot and on its location. For example, in the small village of Mainz-Bingen-Kreis, a square meter of land will cost 165 euros, and in the same-sized village of Taunus it will cost three times as much. The approximate cost of land plots is given in the table:

At the same time, the following expenses must be included in the budget for the purchase of land:

• directly the cost of the site itself;
• registration of a transaction with a notary - 0.5-0.75% of the value of the object;
• amendments to the information about the owner of the land plot in the land register - 0.5-1%;
• one-time tax for the purchase of land - differs in each federal state and is on average 5% of the value of the subject of the contract;
• broker services, if you decide to resort to his help - 3.75-7.14%.

Not the last place in the list will be paid for the work of a construction team, designer, architect. This will have to set aside at least half of what you spend on buying land.

Summing up

Buying a land plot in Germany is considered a rather profitable investment of money both for those who decided to build a comfortable home for themselves, and for those who decided to organize their own business here. There are several ways to find a suitable place for a future building: using the help of a broker or the city hall, finding an interesting ad in newspapers or on real estate websites. If there is not enough money to buy the site, you can take a long-term lease or find something inexpensive at forced auctions.

But before you sign a contract, you need to collect complete information about the property. It is important to find out what was here earlier, whether the main communications have been brought up, whether the former owners have debts. When choosing a land, its value will play a huge role - in Germany it depends on the location of the site and its area.

Buy an inexpensive house in Germany