Real property

A property (Lat. in - mobilis for a non-moving thing), known in the legal and business language "immovable tangible good ," is a piece of land or a building (buildings, apartment). If a property is meant a property is called property. A peculiarity of the Swiss language use is that the property referred to in the grounds constructed building, equivalent to the German term property. In the Austrian usage properties are referred to as realities.

There are some occupations the real estate industry, who specializes in real estate, building and the property market: Geodäten and other civil engineers, real estate brokers and real estate broker, mortgage companies, real estate funds, insurance companies and, not least, the Federal Agency for Real Estate.

Under terms

There are sub-concepts, differentiate the property after its use. Not always these are clearly defined:

• Commercial Property: A building or part of a building which is used exclusively or predominantly for business purposes.
• Social property: Among buildings are summarized that the detection, treatment, prevention and rehabilitation of acute diseases serve (health properties such as hospitals and clinics ). As a social property in the strict sense in particular buildings that serve the residential, lodging, care and maintenance of old, disabled and dependent, seriously ill and dying people and marginalized social groups apply. Insofar as nursing homes residential homes and nursing homes, but also facilities such as child and youth homes or homeless shelters.
• Special property or special property: a building that is created and intended for a well-defined, special use, such as a train station, a power plant building or a hotel.
• Residential Property: A building or part of a building which is used exclusively or mainly for residential purposes.
• Investment property or investment property: A commercial property or a residential property which is used exclusively for return on invested capital and is not intended for self-use.
• Company property or business premises or, in the international environment, corporate real estate (CRE ) is the description of the real estate companies, which are not built, operated and used for the purpose of investment, but due to the use by the respective company.
• Services real estate: land, including the upstanding buildings and their accessories that are necessary to provide services and who are the primary instrument of the provision of its services to the service provider. Here, the provider takes regularly the function of the property owner. In that regard, are often also called Service Real Estate Operators Real Estate. With this type of property deals since 2003, a separate working group of the Society of Property Researchers (gif), in which the concept of the Service property was first defined separately ( https://www.gif-ev.de/cms.191/show/serviceimmobilien ). The Working Group has, inter alia, developed a set of criteria for assessing service residential real estate.
• Operator of property: A property owner includes such land together with the upstanding buildings and their components, requires the use of an operator. Real estate is gaining its commercial value by the operating performance of this operator, which goes beyond the mere use. Therefore, they are "investment sensitive" in the sense that owners and operators stand in a special relationship of dependency, which is characterized by the limited use capacity.

Special rules for property

Purchase, property, rights and taxes

Because of their " immobility " real estates are subject acquisition, use, etc., other statutory provisions as movables. The purchase and transfer of ownership of a property require three operations:

Property could be encumbered with rights as movable property. Such rights include, among liens (eg Belehnbarkeit, see mortgage) and various easements. This may be rights of way regulations to the water law or other easements.

For land is payable usually land tax, which is a local tax. Its amount depends on the unit value of the property, the tax base rate ( § 13 to § 15 GrStG ) and the assessment rate ( percentage). Exceptions to the tax liability apply to land, the public, charitable, religious and scientific purposes ( see § 3, § 4 GrStG ). With the purchase beside land register and other fees (eg cadastral updating fee ) falls on a percentage of land transfer tax. The current purchase costs fluctuate in Germany currently between 9.07 % and 15.14 % additional.

Real Estate in companies and as an investment

Since a large portfolio of real estate owned by the company is an active and result -oriented management of corporate real estate in recent years has greatly increased in importance ( corporate real estate management ). Components thereof are professional management techniques such as facility management of objects, the project development of unused or older inventory building as well as a holistic property controlling. As core real estate leased properties are designated non-current, good tenants.

When a property less the direct use (in the sense of its value ), but primarily as an investment, in addition to their income by renting or leasing the performance is to be observed over a longer period.

Plots exist legally, on the one from the land and on the other from the buildings and physical structures located thereon. The land is largely resistant to inflation, in real terms, because its value remains stable in the long term as "non -augmentable good". In contrast, the value of the property a building falls often. The reasons for this are the " individuality " of the built often on the needs of the original owner building, changing standards and new requirements, other laws and especially the ongoing wear. Depending on the location of the property thus obtained for a plot of land (land building) a positive or negative value.

Impairments in new buildings of 20-50% in the first ten years are not yet in Munich in more rural regions of a rarity. In the long term, ie with observation periods of more than 30 years, the scarcity of soil should lead to the increase in value resulting in an inflation. The decisive factor, however, is the demographic development and especially the development of the region.

A safe investment is real estate that is especially true if the rent or the Mietersparnis are sufficiently high, not only all costs, but also to compensate for the expected future impairments and earn a reasonable return. Lack of state funding and a rethinking of the population, in terms of the quality of real estate as an investment should lead the long term, that the current negative trend in completed houses - can be stopped - which is opposed by another increase in newbuilding prices.

The construction cost index describes the average cost in new construction and influences indirectly the real value of existing properties.

Performance of real estate

To look at the performance of real estate, one must divide them into different categories. The following subdivisions are common:

In general it can be assumed that the value of a property during the first five levels continuously increased. The transition from the first to the second and third stage is usually accompanied by the highest percentage increases in value. In the sixth stage mostly an impairment and in the seventh stage, the value is greatly reduced, sometimes even below the level of the first stage when reorganizations are necessary or refuse dumps exist.

Also the proximity of schools, health and leisure facilities affects the value usually favorable. At first development as construction or land however a basic strip must be assigned as a public good, so that the community can build roads and pipelines.

Depreciating are however emissions, a high noise level or contaminated sites - for example, if on the plot a gas station stood and the soil is contaminated thereby. Also a classification as a nature reserve can be depreciating, because then usually a construction ban is enacted. Impairments or increases may be (for example, construction of an airport or a highway ) and a consequence of a political decision. The performance then depends on the potential uses of the land before and after such a decision.

Valuation

The determination of the value of a property is in Germany in the Regulation on the principles for the determination of fair value of land - controlled ( Property Valuation Ordinance ImmoWertV ). It is a regulation on the basis of § 194 of the Building Code. The following procedures for the determination of property values ​​are described therein:

• Comparison approach
• Income Approach
• Asset value method

These procedures are binding on officially approved experts. In addition, there are numerous so-called " non- standardized " methods such as the DCF method. These find application in particular in international transactions.