In Engelswies, a local church fund is offering four plots of land for a unique kind of property rental known as „Erbbaurecht.“ This system allows individuals to construct homes on land they do not own, with one plot already leased for 99 years. The church retains ownership, and renters must pay an annual fee for the land, which is determined based on the pure soil value excluding development costs. This fee is fixed for the first twelve years and then adjusted every six years according to the Consumer Price Index, making it a potentially fluctuating expense for renters.
The church’s decision to lease rather than sell is rooted in sustaining local community finances through ongoing income. Prices for these plots range from 30,000 to 40,000 Euros for areas of 500 to 600 square meters. Families with children may benefit from reduced fees during the first seven years, making home construction more affordable amidst rising land and construction costs. Should the 99-year lease expire without agreement on continuation, the church is obligated to compensate the tenant for the building’s value, provided two-thirds of the price is paid. For a deeper dive into the mechanics of this arrangement, more details are available auf www.schwaebische.de.
