ᐅ No building plot available due to new EU local residency model?
Created on: 11 Nov 2017 21:49
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Hanneshickel
Hello everyone,
We are a family of two who have been searching for a building plot east of Munich, about 50-70km (30-45 miles) away, near the upcoming A94 highway, for several years. We have applied multiple times to local municipalities near us for a plot under the local resident model, but each time we were rejected due to too few points or because our equity or income was too high. We have too few points because we don’t have children. Since we have been searching for a long time, we have saved around €130,000 (about $140,000) and can save about €15,000 (about $16,000) more each year. However, here you are not allowed to have more savings than the plot would cost (mostly around €150-200/sqm (about $140-190/sqft), so approximately €120,000 (about $130,000)). Also, you are not allowed to earn more than the municipal average, which as a couple is about €80,000 (about $85,000) gross. We, however, earn almost double that gross, so together we have a net income of around €6,500 (about $7,000) per month (both earn roughly the same).
Therefore, our only option is to buy a plot privately. But prices here are extremely high compared to municipal land. We are talking about €500-700/sqm (about $460-650/sqft), so quickly around €300,000 (about $320,000) just for the plot. Then I estimate construction costs of about €400,000-500,000 (about $430,000-540,000) for a 160 sqm (about 1,700 sqft) house with a basement, double garage, and a simple building shape. That means approximately €700,000-800,000 (about $750,000-860,000) in total.
We don’t feel confident financing this amount, as it would easily mean paying over €2,000 (about $2,150) per month for the next 30 years. If one of us takes time off work due to having children, then there would be too little left for living expenses. Or is it now normal to finance this much for a house? My pain threshold is currently around €1,800 (about $1,950) per month for the mortgage.
What do you think?
What other options do we have to get affordable building land?
Or should we forget about building and only look for existing houses?
Thank you and best regards,
Hannes
We are a family of two who have been searching for a building plot east of Munich, about 50-70km (30-45 miles) away, near the upcoming A94 highway, for several years. We have applied multiple times to local municipalities near us for a plot under the local resident model, but each time we were rejected due to too few points or because our equity or income was too high. We have too few points because we don’t have children. Since we have been searching for a long time, we have saved around €130,000 (about $140,000) and can save about €15,000 (about $16,000) more each year. However, here you are not allowed to have more savings than the plot would cost (mostly around €150-200/sqm (about $140-190/sqft), so approximately €120,000 (about $130,000)). Also, you are not allowed to earn more than the municipal average, which as a couple is about €80,000 (about $85,000) gross. We, however, earn almost double that gross, so together we have a net income of around €6,500 (about $7,000) per month (both earn roughly the same).
Therefore, our only option is to buy a plot privately. But prices here are extremely high compared to municipal land. We are talking about €500-700/sqm (about $460-650/sqft), so quickly around €300,000 (about $320,000) just for the plot. Then I estimate construction costs of about €400,000-500,000 (about $430,000-540,000) for a 160 sqm (about 1,700 sqft) house with a basement, double garage, and a simple building shape. That means approximately €700,000-800,000 (about $750,000-860,000) in total.
We don’t feel confident financing this amount, as it would easily mean paying over €2,000 (about $2,150) per month for the next 30 years. If one of us takes time off work due to having children, then there would be too little left for living expenses. Or is it now normal to finance this much for a house? My pain threshold is currently around €1,800 (about $1,950) per month for the mortgage.
What do you think?
What other options do we have to get affordable building land?
Or should we forget about building and only look for existing houses?
Thank you and best regards,
Hannes
Imagine the situation of a mayor in a community of 1,200 people near a highway and a large city. The land for building in his community is reaching record high prices. People moving in from the city drive these prices with their incomes. However, these newcomers have zero interest in the community itself. They use it only as a place to sleep; otherwise, it’s all about the highway access. And when they do show any interest in the local kindergarten or primary school, they think they know better than everyone else. Yes, they seem to look down a bit on the “simple” villagers. On the other hand, the locals earn much less. Max, a skilled carpenter, and his wife Hanna, a bakery sales assistant, can no longer afford the high land prices. But Max is active in the fire brigade, and Hanna coaches the young kids in handball at the sports club. The two have always lived here, are involved everywhere, and well-liked... They are also raising children.
Now, the mayor has the opportunity to acquire six hectares (15 acres) of land. The longtime farmer, Mr. K., wants to sell as his son is not taking over the farm. An agreement is reached, and the mayor is now convincing the town council that the land will become a building site, subsidized at 99 per square meter (approx. 9.20 per square foot). Fully developed infrastructure included. And only locals will be able to buy; newcomers, the village has enough already. Max and Hanna will get a plot. The Koslowskis from the city will not.
...If I were mayor, I would do the same. Karsten
Now, the mayor has the opportunity to acquire six hectares (15 acres) of land. The longtime farmer, Mr. K., wants to sell as his son is not taking over the farm. An agreement is reached, and the mayor is now convincing the town council that the land will become a building site, subsidized at 99 per square meter (approx. 9.20 per square foot). Fully developed infrastructure included. And only locals will be able to buy; newcomers, the village has enough already. Max and Hanna will get a plot. The Koslowskis from the city will not.
...If I were mayor, I would do the same. Karsten
@Karsten
Well, I’m not sure. I’m also a former city dweller who moved to a village. I’m involved in the village’s environmental protection group, I rented a vacant property in the municipal town, and I’ve already had the mayor over for joint activities with other residents who want to make a difference. I’m slowly getting to know all the villagers. OK, I’m no longer part of the sports club – they only ever ate cake. That was a bit counterproductive for me. But the way you describe it, it seems too black and white.
Where exactly are city dwellers supposed to go?
Well, I’m not sure. I’m also a former city dweller who moved to a village. I’m involved in the village’s environmental protection group, I rented a vacant property in the municipal town, and I’ve already had the mayor over for joint activities with other residents who want to make a difference. I’m slowly getting to know all the villagers. OK, I’m no longer part of the sports club – they only ever ate cake. That was a bit counterproductive for me. But the way you describe it, it seems too black and white.
Where exactly are city dwellers supposed to go?
kaho674 schrieb:
Danger or not, and whether you work in the car or not. The time is gone, or are you allowed to deduct phone time from the 8-hour workday? I would be surprised.I am not paid by the hour, but by performance, so a clear YES. Once my work is done, I can leave whenever I want. For someone working on an assembly line under a collective agreement or sitting out their time in a government office, yes, making calls in the car doesn’t really help them at all...
H
Hanneshickel12 Nov 2017 17:15Thank you for your opinions, but unfortunately the discussions are drifting towards commuting. Not everyone can work in any location; for example, as a professor, you always have to commute to larger cities. It’s similar for us.
We have already accepted a maximum commute of 1 hour. That’s just about bearable. What is not bearable are land prices in the Munich commuter belt of over 1000 €/m2 (1000 €/10.8 sq ft).
We are used to and appreciate the rural surroundings.
However, the question remains how and where we can find a property like that.
We are also willing to pay more than through the local resident scheme, but not three to four times the price on the open market.
We have already accepted a maximum commute of 1 hour. That’s just about bearable. What is not bearable are land prices in the Munich commuter belt of over 1000 €/m2 (1000 €/10.8 sq ft).
We are used to and appreciate the rural surroundings.
However, the question remains how and where we can find a property like that.
We are also willing to pay more than through the local resident scheme, but not three to four times the price on the open market.