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Buying a leisure property: Your dream of your own paradise – Here’s how to succeed!

Buying a leisure property: Your dream of your own paradise – Here’s how to succeed!

Buying a leisure property: Your dream of your own paradise – Here’s how to succeed!

Buying a leisure property: Your dream of your own paradise – Here’s how to succeed!

09.02.2025

16

Minutes

Federico De Ponte

Expert for Real Estate at Auctoa

22/02/2025

16

Minutes

Federico De Ponte
Federico De Ponte

Expert for Real Estate at Auctoa

Imagine being able to escape the stresses of everyday life and create your own little paradise. A recreational plot of land offers you precisely this opportunity. But before you sign the purchase agreement, there are several things to consider. Discover in this article how to find your ideal recreational property and what pitfalls to avoid. Need assistance with the search or financing? Contact us for a no-obligation consultation.

The topic in brief

The topic in brief

The topic in brief

The topic in brief

Purchasing a leisure property is an investment in quality of life and returns. It offers relaxation, nature experiences, and potential income through rentals.

The market analysis is crucial. Rising prices require a strategic buying decision and a thorough due diligence to benefit from the investment in the long term.

Pay attention to legal aspects, risks (environmental liabilities, building encumbrances), and financing options. Comprehensive information and careful planning are essential to avoid pitfalls and maximise returns. The annual rental yield can amount to 3-5% with good leasing.

Discover the key aspects of buying a recreational plot. We show you how to find your dream plot and what to consider regarding financing, usage, and legal conditions.

Discover the key aspects of buying a recreational plot. We show you how to find your dream plot and what to consider regarding financing, usage, and legal conditions.

Leisure property: Cleverly combine relaxation and returns

Leisure property: Cleverly combine relaxation and returns

Leisure property: Cleverly combine relaxation and returns

Leisure property: Cleverly combine relaxation and returns

Buying a recreational property is more than just acquiring land; it is an investment in your quality of life and potentially a solid asset. But what exactly defines a recreational property, and why should you invest in one? This article highlights the key aspects you should consider when purchasing such a property.

Definition: Focus on recreational property

A recreational property is a plot of land primarily used for leisure purposes. Unlike building plots, which are intended for residential buildings, or agricultural land, which serves farming purposes, recreational properties focus on relaxation and recreation. It serves as a retreat from daily stress, offering space for hobbies and nature experiences.

Distinction from other types of land

  • Allotment gardens: Allotment gardens are often part of an allotment complex and are subject to strict regulations regarding usage and building.

  • Building plots: Building plots are intended for the construction of residential houses and are subject to the building regulations of the respective state.

  • Agricultural land: These areas are primarily used for agricultural purposes and are subject to the respective laws and regulations.

Why buy a recreational property?

Purchasing a recreational property offers both personal and financial benefits. It is a place where you can individually shape your leisure time and be close to nature. At the same time, it can be an attractive investment that offers potential for appreciation.

Personal benefits

A recreational property provides you with the opportunity to escape the stress of everyday life and relax in nature. You can pursue your hobbies, whether it’s gardening, keeping animals, or simply enjoying the peace. It is a place where you can recharge your batteries and gain new energy. The proximity to nature and the opportunity for active recreation are invaluable benefits that such a property offers.

Financial aspects

Apart from the personal benefits, a recreational property can also be an interesting investment. In times of low interest rates, many people are looking for alternative investment opportunities, and properties can represent a solid investment. Additionally, there is the possibility of renting out the property and thus generating additional income. The long-term appreciation and potential income sources make a recreational property an attractive option for capital investors.

Market Analysis: How Prices for Recreational Properties Are Developing

Market Analysis: How Prices for Recreational Properties Are Developing

Market Analysis: How Prices for Recreational Properties Are Developing

Market Analysis: How Prices for Recreational Properties Are Developing

The market for recreational plots in Germany is diverse and subject to regional variations. To make an informed decision when buying a recreational plot, a thorough analysis of the current market situation is essential. Both supply and demand, as well as price trends, play an important role.

Current Market Situation

In recent years, the demand for recreational plots has increased, leading to price developments. Prices have risen especially in popular regions with good infrastructure and attractive leisure opportunities. Therefore, it is advisable to be informed about the current market situation in the respective region before purchasing. A strategic buying decision is essential in view of rising prices to benefit from the investment in the long term.

Regional Differences in Supply and Demand

The supply of recreational plots varies greatly depending on the region. In some regions, there is a large supply, while in other regions, demand exceeds supply. This naturally affects prices. A thorough market analysis is therefore essential to make the right decision and acquire a plot at the best possible price.

Price Trend: Upward Tendency in Commercial Plots (Handelsblatt Analysis)

According to an article in the Handelsblatt, the prices for commercial plots are rising, which can also impact the market for recreational plots. This requires a strategic approach when purchasing. A thorough due diligence, especially concerning zoning and environmental regulations, is essential. It is advisable to develop negotiation strategies aimed at long-term value appreciation, and to consider alternative financing options like private equity or joint ventures. The rising prices require careful planning and a sound decision-making basis.

Factors Influencing Value

The value of a recreational plot is influenced by various factors. These include the location and accessibility, the size and nature of the plot, as well as any existing development and infrastructure. An accurate assessment of these factors is crucial to determine the real value of the plot and to make an informed purchase decision.

Location and Accessibility

The location is a crucial factor for the value of a recreational plot. Good accessibility by car or public transport, as well as proximity to attractive leisure opportunities, are important criteria. A plot in a popular region with good infrastructure will generally have a higher value than a plot in a remote area.

Size and Nature of the Plot

The size and nature of the plot also play an important role. A large plot offers more possibilities for individual design and use. The soil condition and topography of the land can also influence its value. A level plot with fertile soil is generally more valuable than a steep plot with poor soil quality.

Existing Development and Infrastructure

Existing development, such as a garden house or weekend house, can increase the value of a recreational plot. The availability of infrastructure, such as electricity and water connectivity, also plays an important role. A plot with existing development and infrastructure is generally ready for immediate use and does not require additional investments.

Legal certainty: How to avoid pitfalls when buying property

Legal certainty: How to avoid pitfalls when buying property

Legal certainty: How to avoid pitfalls when buying property

Legal certainty: How to avoid pitfalls when buying property

When purchasing a recreational plot, numerous legal frameworks must be observed. To avoid future problems, it is important to gather comprehensive information in advance and carefully plan the necessary steps. This section provides you with an overview of the most important legal aspects.

The German Real Estate Law

The German real estate law governs ownership rights and the transfer of properties. A key component is the land register, where all relevant information about a property, such as owners, encumbrances, and restrictions, is recorded. Before purchasing, you should definitely take a look at the land register to inform yourself about the ownership status and possible encumbrances.

Land Register and Ownership Status

The land register provides information about ownership status and possible encumbrances of the property. It is a public register maintained at the local district court. An extract from the land register gives you an overview of the legal situation of the property and helps you to avoid risks.

Notarial Contract and Purchase Processing

The purchase of a property in Germany must be notarised. The notary is responsible for the proper execution of the purchase contract and advises both buyers and sellers impartially. The notarial contract regulates all important details of the purchase, such as purchase price, payment terms, and handover date.

Building Regulations and Permissions

If you wish to build or make structural changes on your recreational plot, you must adhere to the building regulations of the respective federal state. These govern permissible development, boundary distances, and design specifications. Make sure you are informed in advance about the applicable building regulations and obtain any necessary approvals as needed.

Development Plan and Land Use Plan

The development plan specifies how a particular area may be developed. The land use plan provides an overview of the planned use of land areas within a municipality. These plans inform you about which development possibilities exist on your recreational plot.

Measures Requiring Approval

For certain construction activities, such as the erection of a garden house or weekend residence, you will need a building permit. The requirement for approval depends on the building regulations of the respective federal state. Check in advance with the relevant building authority to determine whether your planned activities require approval.

Tax Aspects

Various taxes apply when purchasing a recreational plot. These include the land transfer tax, property tax, and potentially income tax on rental income. Familiarise yourself with the tax implications of the purchase and incorporate these into your financial planning.

Land Transfer Tax

The land transfer tax is a one-time tax incurred upon purchasing a property. The rate of tax varies from state to state. It is levied on the purchase price of the property and is borne by the buyer.

Property Tax

Property tax is an annual tax levied on the value of the property. The amount of the tax depends on the municipality. It is levied on all property owners and helps fund municipal tasks.

Income Tax for Rentals

If you rent out your recreational plot, you must pay tax on the rental income. Income tax is levied on the profit from the rental. Make sure you are informed about the tax regulations for rental income and include these in your tax return planning.

Finding Your Dream Plot: How to Successfully Search

Finding Your Dream Plot: How to Successfully Search

Finding Your Dream Plot: How to Successfully Search

Finding Your Dream Plot: How to Successfully Search

The search for the ideal leisure property can be a challenge. There are various ways to find a suitable property, each with its own advantages and disadvantages. This section provides you with tips and tricks to make your search successful.

Online Portals and Estate Agents

Online portals and estate agents are popular places to look for a leisure property. They offer a wide selection of properties and can assist you in your search. Compare the offerings of various portals and agents to find the best deal.

Advantages and Disadvantages of Different Search Methods

Online portals provide a wide selection and enable a quick search. Estate agents have expertise and can offer personalised advice. Weigh the pros and cons and choose the search method that best suits your needs.

Research on realogis.de (Commercial Land)

Even though realogis.de primarily offers commercial land, it may be worth searching there for potential leisure properties, especially if you are interested in commercial use. However, note that the requirements for commercial land may differ from those for purely leisure properties.

Viewing and Assessing the Property

Once you have found an interesting property, you should definitely visit and assess it. An on-site visit gives you an impression of the location, size, and condition of the property. Use a checklist to review all important aspects and get a comprehensive picture.

Checklist for the Viewing

Create a checklist with all the important aspects you want to check during the viewing. This includes, among other things, the location, size, condition, development, infrastructure, and surroundings of the property. A systematic approach helps you not overlook any important details.

Professional Appraisals

In certain cases, it may be wise to have a professional appraisal carried out. An appraiser can objectively assess the property's value and assist you with the purchase decision. An appraisal gives you security and can help you in negotiations with the seller.

Financing Options

The purchase of a leisure property is generally associated with high costs. Learn about various financing options, such as bank loans, private financing, and support programmes. Compare the offerings of different providers and choose the financing that best fits your financial situation.

Bank Loans

Bank loans are a common way to finance the purchase of a property. Compare the interest rates and terms of different banks to find the best offer. Pay attention to the term and the monthly instalments of the loan.

Private Financing

In addition to bank loans, there are also private financing options, such as loans from friends or family. These can be a flexible alternative to bank loans. Agree on clear terms with the private lender to avoid misunderstandings.

Support Programmes

There are various support programmes that assist with the purchase of a property. Inform yourself about the current support programmes from the federal government, states, and municipalities. Use the support programmes to optimise your financing.

Creating a Paradise: Ideas for the Optimal Use of Your Property

Creating a Paradise: Ideas for the Optimal Use of Your Property

Creating a Paradise: Ideas for the Optimal Use of Your Property

Creating a Paradise: Ideas for the Optimal Use of Your Property

After purchasing a leisure plot, the exciting phase of design and use begins. There are countless ways to customise the plot according to your individual wishes and needs. This section offers you ideas and inspiration for the optimal use of your leisure plot.

Garden and Landscape Design

Garden and landscape design is an important aspect of using a leisure plot. You can create a nature and relaxation garden, design a kitchen garden for personal use, or combine both. Let your creativity flow and design your garden according to your vision.

Nature and Relaxation Garden

A nature and relaxation garden offers you a place of peace and relaxation. You can use native plants, create a pond, or design a cosy seating area. Create an oasis of relaxation where you can escape the stresses of everyday life.

Kitchen Garden for Personal Use

A kitchen garden gives you the opportunity to grow your own fruit and vegetables. You can make beds, plant herbs, or design a small orchard. Harvest fresh and healthy produce from your own garden.

Leisure Activities on the Plot

A leisure plot offers a variety of possibilities for leisure activities. You can barbecue and have campfires, engage in sports and games, or keep animals. Use your plot to make your leisure time active and varied.

Barbecuing and Campfires

A barbecue area and a fire pit are ideal places to spend relaxed hours outdoors with friends and family. Pay attention to safety regulations and avoid noise disturbances. Enjoy delicious food and a crackling campfire under the open sky.

Sport and Games

A leisure plot provides ample space for sports and games. You can install a volleyball court, set up a trampoline, or simply play in the garden. Keep fit and active in the great outdoors.

Keeping Animals

If you like animals, you can keep small animals on your leisure plot, such as chickens or rabbits. Ensure proper animal care and comply with applicable regulations. Experience the joy of animal keeping and enjoy fresh eggs from your own production.

Building Possibilities

On a leisure plot, you can generally build a garden shed or a tool shed. In some cases, the construction of a holiday home or weekend house is also possible. Find out about building possibilities and obtain the necessary permits if required.

Garden Shed and Tool Shed

A garden shed provides storage for garden tools and furniture. A tool shed is used for storing tools and materials. Create order and clarity on your plot.

Holiday Home or Weekend House (possibly subject to permit)

A holiday home or weekend house gives you the opportunity to spend extended time on your leisure plot. Find out about permit requirements and building regulations. Enjoy carefree holidays in your own holiday home.

Minimising risks: What you need to watch out for before purchasing

Minimising risks: What you need to watch out for before purchasing

Minimising risks: What you need to watch out for before purchasing

Minimising risks: What you need to watch out for before purchasing

When purchasing a recreational plot, there are some pitfalls you should avoid. Contamination, easements, and contract clauses can lead to unexpected issues. This section shows you what to watch out for before buying to minimise risks.

Contamination and Environmental Issues

Contamination and environmental issues can significantly diminish a property's value and lead to high remediation costs. Conduct a soil investigation before purchasing to rule out contamination. Check the local council's contamination register to identify potential risks.

Soil Investigations

A soil investigation provides information about the soil's condition and any potential pollution. It should be carried out by a certified laboratory. The cost of a soil investigation is a well-spent investment to avoid future problems.

Contamination Register

The local council's contamination register contains information about known sites of suspected contamination and contaminated locations. Check the register to identify possible risks.

Easements and Access Rights

Easements and access rights can limit the use of a property. Before buying, ensure you have access to the easement register to identify any possible constraints. Clarify existing access rights to avoid conflicts with neighbours.

Access to the Easement Register

The easement register contains information about easements that apply to a property. Easements can restrict how a property is built or used. Refer to the register to identify potential constraints.

Clarification of Access Rights

Access rights grant others permission to enter or drive through your property. Clarify existing access rights to avoid conflicts with neighbours. If necessary, arrange a written agreement with the entitled parties.

Contract Clauses

Pay attention to important clauses when drafting the purchase contract, such as the right of withdrawal and warranty. Seek advice from a lawyer or notary to protect your interests. Review the contract carefully before signing it.

Right of Withdrawal

A right of withdrawal allows you to back out of the purchase contract if certain conditions are not met. Agree on a right of withdrawal to protect yourself from unexpected problems.

Warranty

The warranty assures you that the property is free from defects. Agree on a warranty to protect yourself from hidden defects.

Investment: How to Achieve Returns with Your Leisure Property

Investment: How to Achieve Returns with Your Leisure Property

Investment: How to Achieve Returns with Your Leisure Property

Investment: How to Achieve Returns with Your Leisure Property

A recreational property can be not only a place of relaxation but also an attractive investment opportunity. Through renting, value appreciation, and development, you can achieve returns. This section shows you how to use your recreational property as an investment.

Rental as a Source of Income

Renting out your recreational property can be an attractive source of income. You can rent it out short-term to holiday guests or long-term to permanent campers. Generate additional income by renting out your land.

Short-term Rental to Holiday Guests

Short-term rental to holiday guests is a particularly lucrative option in tourist-attractive regions. Offer your land through online portals and rent it to vacationers. Achieve high rental income in the peak season.

Long-term Rental to Permanent Campers

Long-term rental to permanent campers provides you with a stable source of income. Rent your land to campers who set up their caravan or tent there. Secure regular rental income over a longer period.

Value Appreciation through Development

By extending, modernising, and changing usage, you can increase the value of your recreational property. Invest in the development of your land and achieve value appreciation.

Extension and Modernisation

By extending a garden house or modernising a holiday home, you can increase the value of your land. Invest in improvements in amenities and comfort.

Change of Use (Potentially Requires Approval)

In some cases, it is possible to change the use of a recreational property, for example, into a building site. Inform yourself about the approval requirements and prerequisites for a change of use. Achieve a significant value increase by changing the use.

Risk Considerations

Like any investment, purchasing a recreational property involves risks. Market fluctuations, vacancies, and maintenance costs can impact returns. Consider the risks in your decision and plan these into your financing.

Market Fluctuations

Property prices can fluctuate. Inform yourself about the current market situation and future forecasts. Consider possible price fluctuations in your decision.

Vacancy

If you rent out your property, there is a risk of vacancy. Ensure attractive marketing and offer your land at a market-appropriate price. Minimise the risk of vacancy through a good rental strategy.

Maintenance Costs

Costs will arise for the maintenance of your property. Plan these costs into your financing. Consider the maintenance costs when calculating your returns.

Conclusion: Leisure property – Your key to a personal paradise?

Conclusion: Leisure property – Your key to a personal paradise?

Conclusion: Leisure property – Your key to a personal paradise?

Conclusion: Leisure property – Your key to a personal paradise?

Purchasing a recreational property can be a rewarding investment, both for your quality of life and your financial future. It provides you with the opportunity to escape everyday stress, personalise your leisure time, and acquire an attractive investment. However, before deciding to purchase, you should inform yourself comprehensively and consider the most important aspects.

Summary of the Key Aspects

The key aspects when buying a recreational property include location, size, condition, development, infrastructure, legal framework, financing options, and risks. Consider all aspects in your decision to find a suitable property and minimise risks.

Individual Basis for Decision-Making

The decision for or against purchasing a recreational property is an individual decision that depends on your personal needs, desires, and financial possibilities. Weigh the advantages and disadvantages and make an informed decision.

Outlook on the Future of the Recreational Property Market

The recreational property market is expected to continue developing positively. The demand for nature-related recreational areas is increasing, and properties are becoming more attractive as an investment. Benefit from the positive development of the market and invest in a recreational property.

Are you ready to create your own paradise? A recreational property offers you the unique opportunity to realise your dreams while making a solid investment. We at Auctoa are happy to assist you in evaluating and financing your dream property. Discover our services and find the perfect property for your needs. Our experts are at your side with advice and assistance throughout every step of the purchasing process.

Take the opportunity and invest in your quality of life. Contact us today for a non-binding consultation and let us find your dream property together. We look forward to your enquiry!

Your dream of a recreational property: Now with Auctoa to your dream real estate!

Your dream of a recreational property: Now with Auctoa to your dream real estate!

Your dream of a recreational property: Now with Auctoa to your dream real estate!

Your dream of a recreational property: Now with Auctoa to your dream real estate!

Buying a recreational property is a decision that requires careful consideration. With the right preparation, meticulous planning, and professional support, you can realise your dream of owning your very own paradise. Use the tips and tricks in this article to avoid pitfalls and make a successful investment. A recreational property by the lake or in the mountains – the possibilities are diverse.

Auctoa revolutionises the valuation of properties and land with the use of cutting-edge automation and AI-supported human expertise, providing precise, certified, and market-appropriate valuations. Our unique combination of advanced AI and experienced human appraisal guarantees the highest precision and speed in determining the true property value. We offer fully automated valuation platforms, hybrid AI-human appraisals, digital market analyses, and comprehensive valuation reports.

Are you ready to find your dream recreational property? Auctoa supports you with state-of-the-art technology and expert knowledge. We help you determine the true value of your desired property and ensure you make the best decision.

Contact us today to learn more about our services and how we can help you find your dream recreational property. Start your search now!

FAQ

FAQ

FAQ

FAQ

What exactly is a leisure property and how does it differ from other types of property?

A leisure property is primarily for recreation and relaxation. Unlike building plots or agricultural land, the focus here is on leisure activities. It provides space for hobbies and nature experiences.

What personal benefits does purchasing a leisure property offer?

A leisure property allows you to escape the daily stress and relax in nature. You can indulge in your hobbies, enjoy the peace and recharge your batteries.

What financial benefits can purchasing a leisure property offer?

A leisure property can be an interesting investment with potential for value appreciation. Additionally, there is the possibility to let the property and thereby generate additional income.

How are the prices for leisure properties currently developing?

The demand for leisure properties has increased in recent years, which has generally led to a price trend. Prices have particularly risen in popular regions with good infrastructure and attractive leisure opportunities. A strategic buying decision is essential.

What factors influence the value of a leisure property?

The value is influenced by various factors, including the location and accessibility, the size and condition of the property, and the existing buildings and infrastructure.

What legal aspects need to be considered when buying a leisure property?

There are numerous legal frameworks to consider, especially property law, building regulations, and tax aspects. Comprehensive information and careful planning are important to avoid problems later on.

Where can I find the right leisure property?

Online portals and estate agents are popular points of contact. Even though realogis.de primarily offers commercial properties, it may be worthwhile to look there for potential leisure properties.

What risks need to be considered when buying a leisure property?

There are some pitfalls you should avoid, including contamination, building restrictions, and unfavourable contractual clauses. A thorough check in advance is crucial.

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auctoa – Your partner for precise valuations and certified appraisals. Real estate and land valuation. With digital expertise, expert knowledge, artificial intelligence, personalized advice, and comprehensive market insights.

auctoa – Your partner for precise valuations and certified appraisals. Real estate and land valuation. With digital expertise, expert knowledge, artificial intelligence, personalized advice, and comprehensive market insights.

auctoa – Your partner for precise valuations and certified appraisals. Real estate and land valuation. With digital expertise, expert knowledge, artificial intelligence, personalized advice, and comprehensive market insights.

auctoa – Your partner for precise valuations and certified appraisals. Real estate and land valuation. With digital expertise, expert knowledge, artificial intelligence, personalized advice, and comprehensive market insights.