Long-term lease in Freising: Opportunity for families or financial trap?

Long-term lease in Freising: Opportunity for families or financial trap?

A lot is happening on the real estate market in Freising. More and more families are turning to the leasehold model, which represents an interesting alternative to the classic purchase of land. Given the rapidly rising real estate prices and interest rates, this form of property acquisition is becoming increasingly attractive. How Mercury reports, the leasehold model opens up new living space for younger generations.

A clear advantage of the leasehold model is the lower financial barrier to entry. Buyers do not have to purchase the entire property, but only pay for the house and an annual ground rent, which is usually between 3 and 5 percent of the land value. With this strategy, the initial costs are significantly lower, which helps families finance their own property. Loud Financial tip In one example, the costs in the first year can be up to 152,000 euros lower than with direct purchase.

Advantages and disadvantages at a glance

Of course, the leasehold model does not only bring advantages. A major disadvantage is the obligation to pay the ground rent over the entire term, which is often 60 to 99 years. The uncertainty as to whether the contract will be extended can also be a burden. If the contract ends, the house reverts to the property owner, how Mercury highlights. In addition, when financing leasehold properties, banks are often more cautious when it comes to the possible loan amount.

An essential question about financing is emerging: Who is the leaseholder? Banks have different criteria. Houses offered by trustworthy owners such as municipalities or foundations are usually easier to finance, while private owners are sometimes considered to be more risky. The term of the lease agreement is also important; A loan should always be paid off at least 15 years before the contract expires Immo.info supplemented.

Current developments in Freising

Leasehold properties are currently experiencing a boom in the Freising district. There are many offers to be found particularly in the areas of Eichenfeld, Waldsiedlung, Lerchenfeld and Holzgartenstrasse. Here, the leasehold model not only attracts young families, but also helps communities secure housing for certain professional groups.

Overall, it is clear that leasehold in Freising can be an attractive option for addressing the housing shortage. But as with any decision, it is important to be well informed and, if necessary, to seek legal advice. With the right hand, you can also make good business in this form of property acquisition.