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Properties in Urban vs. Rural Locations: Advantages and Disadvantages

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Alessio Furlan

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Alessio Furlan

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(ex: Photo by

Alessio Furlan

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City or countryside: Where is your property truly valuable?

City or countryside: Where is your property truly valuable?

City or countryside: Where is your property truly valuable?

City or countryside: Where is your property truly valuable?

09.02.2025

15

Minutes

Federico De Ponte

Expert for Real Estate at Auctoa

22/02/2025

15

Minutes

Federico De Ponte
Federico De Ponte

Expert for Real Estate at Auctoa

Do you dream of a property that not only meets your needs but also represents a profitable investment? The choice between city and country is crucial. Learn more about the pros and cons and how to make an informed decision. Need assistance in evaluating your property? Get in touch with our experts here.

The topic in brief

The topic in brief

The topic in brief

The topic in brief

The choice between city and countryside heavily depends on individual needs and preferences. While the city offers better infrastructure, the countryside scores with tranquility and nature.

The professional evaluation of a property is essential for making an informed decision. An appraisal takes into account all relevant factors and offers legal assurance.

Considering development costs, zoning plans, and legal encumbrances is crucial to avoid cost traps and optimally determine the land value. A thorough assessment can increase the value by up to 10-15%.

Discover the key factors that influence the value of your property, whether in the city or countryside. Learn which location is worthwhile for you and how to obtain an accurate appraisal.

Discover the key factors that influence the value of your property, whether in the city or countryside. Learn which location is worthwhile for you and how to obtain an accurate appraisal.

Maximise property value: Strategically choose city or rural location

Maximise property value: Strategically choose city or rural location

Maximise property value: Strategically choose city or rural location

Maximise property value: Strategically choose city or rural location

The decision for a property is often one of the most significant in life. The question arises: Should it be a property in the city or in the countryside? Both options offer advantages and disadvantages that need to be carefully weighed. This article aims to help you make the right choice and determine the optimal value of your property. Auctoa is revolutionising the valuation of real estate and properties through the use of cutting-edge automation and AI-powered expertise. Find out how to receive an accurate valuation.

Buying Property: A Location Decision with Far-Reaching Implications

The location of a property is crucial to its value and appeal. Both the macro-location and micro-location play an important role. The macro-location encompasses regional infrastructure and economic strength, while the micro-location considers the immediate surroundings, amenities, and environmental factors. A good macro-location is characterised, for example, by good connections to major transport routes and a stable economy. The micro-location, on the other hand, is determined by factors such as proximity to schools, shopping facilities, and green spaces. Finding the right location is essential for the long-term success of your investment.

Overview of the Advantages and Disadvantages of City and Country Locations

The choice between city and country depends on your individual needs and preferences. In the city, you benefit from excellent infrastructure, a variety of jobs, and a broad cultural offering. However, property prices in the city are generally significantly higher than in the countryside. In the countryside, however, you enjoy peace, nature, and more space, but must contend with longer distances and less developed infrastructure. A well-founded basis for decision-making is therefore essential. The professional valuation is indispensable in this regard.

Precisely determine property value: Comparative, asset and income value methods

Precisely determine property value: Comparative, asset and income value methods

Precisely determine property value: Comparative, asset and income value methods

Precisely determine property value: Comparative, asset and income value methods

To determine the value of a property, various methods are employed depending on the type of property and the purpose of the valuation. The most common methods are the comparative value method, the standard land value method, the cost value method, and the income value method. Each of these methods considers different aspects and factors to determine the most accurate value possible. It is important to know the advantages and disadvantages of each approach to select the appropriate method for your situation. The ImmoWertV provides the framework for this.

Traditional and Modern Valuation Methods

The comparative value method is the preferred method for determining property value. It is based on comparisons with similar properties that have been sold in the recent past. The more comparable sales are available, the more accurate the result. The standard land value method is an alternative when sufficient comparative data is unavailable. It is based on the standard land values determined by the expert committees. However, it should be noted that the standard land value can differ from the actual market value. The cost value method is primarily used for developed properties and considers the building's value as well as the land value. The income value method, on the other hand, is used for properties intended to generate rental income, and it is based on capitalisation of the potential earnings. Modern approaches use GIS, Big Data, and Machine Learning for accurate valuation.

Key Factors Influencing Property Price

In addition to choosing the valuation method, various key factors also play an important role in determining the property price. The location is one of the most crucial factors. Properties in central locations, close to schools, shopping facilities and transport links, typically achieve higher prices. The size and shape of the property also affect its value. A rectangular plot is usually easier to develop than a plot with an unusual shape. The soil quality is another important factor. A property with poor subsoil can lead to significant additional costs. The development level also plays a part. A fully developed property is generally more expensive than one that is not yet developed. Development costs should always be taken into account. The buildability also influences the value. A property that can only be developed to a limited extent due to zoning regulations or building codes is usually less valuable.

Optimising Urban Living: Weighing the Advantages and Disadvantages of City Locations

Optimising Urban Living: Weighing the Advantages and Disadvantages of City Locations

Optimising Urban Living: Weighing the Advantages and Disadvantages of City Locations

Optimising Urban Living: Weighing the Advantages and Disadvantages of City Locations

A plot in the city offers numerous advantages that make urban life attractive. The proximity to workplaces, shopping facilities, and cultural offerings is a major plus. Also, the good infrastructure and transport connections should not be underestimated. However, there are also disadvantages that should be considered when making a decision. The higher property prices and living costs, as well as noise pollution and air pollution, can affect life in the city. Therefore, it is important to carefully weigh the pros and cons to make the right decision. The location is crucial.

Advantages of Urban Location

The urban location offers a high quality of life due to its proximity to all important facilities and amenities. Workplaces are often within walking distance or accessible by public transport, saving time and money. There is an abundance of shopping options, allowing you to complete all necessary errands quickly and conveniently. The cultural offerings in the city are also significantly more varied than in the countryside. Theatres, museums, concerts, and other events provide variety and entertainment. The good infrastructure and transport connections allow you to travel easily and quickly from A to B. Whether by bus, train, or car – the city is well connected. The central location is a significant advantage.

Disadvantages of Urban Location

Despite the many advantages, there are also some disadvantages that can make city living less attractive. The higher property prices and living costs are a significant factor. Those who wish to live in the city generally need to dig deeper into their pockets than in rural areas. Noise pollution and air pollution can also affect city life. Traffic noise, emissions, and fine dust can harm health. In addition, there are often fewer green spaces and recreational opportunities in the city. Those seeking peace and nature often need to head to the outskirts or surrounding areas. The parking situation can also be problematic in the city, with the search for a parking spot costing time and patience.

Embrace rural charm: Peace and nature with compromises

Embrace rural charm: Peace and nature with compromises

Embrace rural charm: Peace and nature with compromises

Embrace rural charm: Peace and nature with compromises

A plot in the countryside promises peace, a close connection to nature, and affordable land prices. However, there are compromises to consider. Longer distances to workplaces, shopping facilities, and services, as well as poorer infrastructure and transport links, are disadvantages that must not be overlooked. The decision for a countryside plot should therefore be well thought out. The location is crucial.

Advantages of Countryside Living

The countryside living stands out mainly because of its tranquillity and proximity to nature. Here you can escape the everyday stress and relax your mind. The more affordable land prices are another bonus. Those willing to compromise on infrastructure and transport links can save a lot of money in the countryside. Additionally, the space and privacy are generally greater in the countryside than in the city. Here you can unfold freely and realise your individual housing dreams. The evaluation of properties is important here.

Disadvantages of Countryside Living

The flip side of the rural idyll is the longer distances to workplaces, shopping facilities, and services. Those living in the countryside typically have to accept longer journey times. Furthermore, the infrastructure and transport connections are often worse in the countryside than in the city. Buses and trains run less frequently, and the roads are often less well developed. Additionally, there are often fewer cultural offerings and leisure activities in the countryside. Those who value a varied leisure programme often have to go to the nearest city. The dependence on a car is another disadvantage. Living in the countryside generally requires a car to maintain mobility. The international land prices vary significantly.

Avoid cost traps: Understanding development charges and the development plan

Avoid cost traps: Understanding development charges and the development plan

Avoid cost traps: Understanding development charges and the development plan

Avoid cost traps: Understanding development charges and the development plan

When purchasing a property, it is important to consider not just the purchase price but also the development costs and legal aspects. Development costs can be a significant expense, and the local development plan determines what type of building can be erected on the land. Legal encumbrances and restrictions can also affect the value of the property. Therefore, it's crucial to seek comprehensive information and advice before making a purchase. Development costs are a major consideration.

Development Costs: A Significant Financial Factor

The development costs include the expenses associated with connecting the property to public utilities (electricity, water, sewage, gas, telecommunications). The amount of development costs depends on various factors such as the location of the property, the degree of development, and local conditions. The 'allocation notice' governs the division of costs between buyer and seller. Typically, the buyer covers the cost of developing the land. However, there are exceptions, such as when a different arrangement is specified in the purchase contract. The owner is liable for up to 90% of the costs in accordance with §129 BauGB. A professional valuation is essential here.

Development Plan and Its Significance

The development plan is a vital component of building law. It specifies what type of building can be constructed on the land. The plan includes detailed provisions about building lines, roof shapes, facade colours, etc. The development plan greatly influences the developability and the property value. A plot of land that can only be developed in a limited way due to the plan is generally less valuable than one that can be freely developed. Valuation is crucial in this context.

Legal Encumbrances and Restrictions

Legal encumbrances and restrictions can also impact the value of a property. Mortgages (loans), rights of way, and residential rights can diminish the property's value. A mortgage burdens the property with a monetary claim. A right of way grants another person the right to enter or drive over the property. A residential right grants another person the right to live on the property. Therefore, it's essential to be informed about any potential legal burdens and restrictions before purchasing. These factors are important for value determination.

Mastering special cases: Correctly evaluating built-up properties and hinterland

Mastering special cases: Correctly evaluating built-up properties and hinterland

Mastering special cases: Correctly evaluating built-up properties and hinterland

Mastering special cases: Correctly evaluating built-up properties and hinterland

The valuation of developed properties and properties with hinterland requires specific expertise and methods. For developed properties, both the value of the building and the land value must be considered. For properties with hinterland, different valuation approaches must be applied for the building land and the hinterland. Therefore, it is advisable to seek advice from a professional. The professional valuation is essential in this regard.

Valuation of Developed Properties

In valuing developed properties, a mixed calculation of land and building value is carried out. The value of the building is generally determined using the cost value approach, considering the construction costs of the building minus depreciation. The land value is usually determined using the comparative value method or the standard land value method. For new development plans, demolition costs must be taken into account. Demolition costs reduce the value of the property. The factors for property valuation are important here.

Hinterland: Valuation of Properties with Non-buildable Areas

When valuing properties with hinterland, different valuation approaches must be applied for the building land and the hinterland. The building land is generally valued using the comparative value method or the standard land value method. The hinterland is usually valued using the income value approach or the cost value approach. The factors that influence the value of the hinterland include recreation value and conservation value. Hinterland that can be used as a local recreation area is generally more valuable than hinterland used for agriculture. The factors for determining value are important in this context.

Leverage expert knowledge: Professional appraisals for legally sound decisions

Leverage expert knowledge: Professional appraisals for legally sound decisions

Leverage expert knowledge: Professional appraisals for legally sound decisions

Leverage expert knowledge: Professional appraisals for legally sound decisions

A professional appraisal is essential to objectively and legally determine the value of a property. An appraiser has the necessary expertise and experience to consider all relevant factors and provide a well-founded valuation. Online valuation tools and DIY methods are often inaccurate and can lead to incorrect decisions. The professional valuation is indispensable here.

Why a professional appraisal is essential

A professional appraisal offers objectivity, market knowledge, and legal certainty. An appraiser is independent and impartial and can therefore provide an objective valuation. They have comprehensive market knowledge and can consider current market trends and price developments. Furthermore, an appraisal is legally secure and can be used in court in the event of a dispute. Online valuation tools and DIY methods are often inaccurate and can lead to incorrect decisions. They often do not consider all relevant factors and are therefore unreliable. The property valuation is important here.

The different types of appraisers in Germany

In Germany, there are different types of appraisers: publicly appointed and sworn appraisers, independent appraisers, and certified appraisers. Publicly appointed and sworn appraisers are appointed and sworn by an authority and are subject to special oversight. Independent appraisers are not publicly appointed and sworn but may have the necessary qualifications. Certified appraisers have passed an examination and received a certificate. The DIN EN ISO/IEC 17024 certification and DAkkS accreditation are important quality features. The factors for property valuation are important here.

Costs of an appraisal and when it is needed

The costs of an appraisal depend on various factors, such as the value of the property, the scope of the appraisal, and the effort of the appraiser. Typically, costs range between 0.5% and 1% of the market value plus VAT. An appraisal is needed in various situations, such as during sales planning, divorce proceedings, inheritance matters, and tax issues. The factors for determining value are important here.

Identifying Trends: Analyzing Market Developments and Regional Differences

Identifying Trends: Analyzing Market Developments and Regional Differences

Identifying Trends: Analyzing Market Developments and Regional Differences

Identifying Trends: Analyzing Market Developments and Regional Differences

Land prices are subject to constant changes and depend on various factors. It is therefore important to know the current market trends and price developments to be able to make a realistic assessment of the land value. Regional differences also play a major role. Land prices in urban centres are generally significantly higher than in rural areas. The location is crucial.

Current Market Trends and Price Developments

The price increases, supply and demand, as well as regional price differences are important indicators for market development. In recent years, land prices have risen sharply in many regions of Germany. The high demand for building land and the limited supply have led to a price increase. However, there are also regional differences. In some regions, prices have risen more sharply than in others. The influence of urban centres on land prices should not be underestimated either. In urban centres, prices are generally significantly higher than in rural areas. International land prices vary greatly.

Future Developments and Trends in Land Valuation

Automation, smart systems, and CNC technology will play an increasingly important role in land valuation in the future. By using automated processes, assessments can be conducted more quickly and efficiently. Smart systems can analyse large amounts of data and identify patterns relevant for valuation. Simulation technologies and big data analysis will also play a greater role in the future. Simulations allow different scenarios to be played out and the impacts on the land value to be analysed. Accurate valuation is important in this context.

Make an individual decision: Align choice of property with personal needs

Make an individual decision: Align choice of property with personal needs

Make an individual decision: Align choice of property with personal needs

Make an individual decision: Align choice of property with personal needs

The choice of the right property is a personal decision that depends on your needs and preferences. There’s no one-size-fits-all answer to whether a property in the city or the countryside is better. Both options present pros and cons that need careful consideration. The professional evaluation is essential here.

Summary of the key advantages and disadvantages of urban and rural locations

The urban location offers good infrastructure, a variety of job opportunities, and a wide cultural offering. However, property prices in the city are generally higher than in the countryside. The rural location, on the other hand, offers tranquillity, nature, and more space but comes with longer commutes and less developed infrastructure. The factors for property evaluation are important here.

Emphasis on individual needs and preferences in site selection

When choosing the right property, you should consider your individual needs and preferences. If you value good infrastructure, a variety of job opportunities, and a wide cultural offering, a property in the city might be the right choice for you. However, if you are seeking tranquillity, nature, and more space, a property in the countryside may be more suitable. The factors for value determination are important here.

Final recommendations for an informed decision

To make an informed decision, you should thoroughly research and seek advice before purchasing. Obtain quotes from various surveyors and compare prices and services. Consult an architect or civil engineer to assess the buildability of the property. Inform yourself about the development plan and the legal framework. And finally: trust your instincts and choose the property that suits you best. Government subsidies for heat pumps offer an excellent opportunity to invest in a sustainable and efficient heating solution. Whether it's a new build or the renovation of an old building, the available support programs and tax advantages make the switch to a heat pump attractive and financially viable.

With a variety of support programs and tax incentives, there are numerous ways to reduce the cost of installing a heat pump. Auctoa offers comprehensive advice and support in selecting the right heat pump, meeting technical requirements, navigating the application process, and avoiding potential issues.

By choosing a heat pump, you are investing in the future of your home. Not only do you reduce your energy costs and secure constant warmth, but you also make a significant contribution to environmental protection.

Now is the perfect time to explore the support possibilities for your project. Contact us today to start your tailored consultation and facilitate a quick and easy funding application. Register for free and receive an immediate initial estimate for the renovation needs of your property.

FAQ

FAQ

FAQ

FAQ

What factors have the greatest impact on property value in the city?

In the city, the location (micro and macro-location), infrastructure, proximity to workplaces and cultural offerings are the main drivers of value. The buildability also plays a crucial role.

What advantages does a rural property offer in terms of quality of life?

Rural properties generally offer more peace, a connection with nature, and space. This can lead to a higher quality of life, especially for families and those looking to escape urban noise.

How do development costs affect the overall price of a property?

The development costs can constitute a significant portion of the total price. They include the costs of connecting to the public utility network (electricity, water, sewage, etc.). It's important to take these costs into account before purchasing.

What role does the development plan play in deciding on a property?

The development plan determines what type of building can be constructed on the property. It contains detailed regulations about building lines, roof shapes, facade colours, and more. The development plan greatly influences the buildability and property value.

How can I use the standard land value as an initial guide for property valuation?

The standard land value is an average price per square metre determined by the appraisal committees. It serves as an initial guide but should not be used as the sole basis for valuation as individual property characteristics are not considered.

When is a professional appraisal essential for property valuation?

A professional appraisal is essential in sales planning, divorce proceedings, inheritance matters, and tax issues. An appraiser has the necessary expertise and experience to provide an objective and legally sound valuation.

What role do market trends and regional differences play in property valuation?

Market trends (price increases, supply and demand) and regional price differences are important indicators of market development. Property prices in metropolitan areas are generally significantly higher than in rural regions.

How can Auctoa assist with property valuation?

Auctoa is revolutionising property and land valuation through the use of advanced automation and AI-driven expertise. We offer precise, certified and market-driven valuations for real estate investors, banks, real estate agents, developers and private owners.

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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.