ᐅ No building plot available due to new EU local residency model?
Created on: 11 Nov 2017 21:49
H
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
H
HilfeHilfe12 Nov 2017 18:06Hanneshickel schrieb:
Thanks for your opinions, but unfortunately the discussion is drifting towards commuting. Not everyone can work in just any location; for example, as a professor, you always have to travel to larger cities. It’s similar for us.
We have already accepted a maximum commuting time of 1 hour. That is just about bearable. What is not bearable are land prices in the greater Munich area of over €1000/m2 (approximately $100 per square foot).
We are used to and appreciate the rural surroundings.
The question remains how and where we can find such a property.
We are also happy to pay more than through the local resident program, but not three to four times the price on the open market.There is no other solution than to keep searching and saving. Possibly staying with affordable rent after all. Given your income, that’s not unreasonable. You belong to the higher income group. Regarding commuting, I understand the debate, but it’s a matter of weighing income and construction costs against commuting time.
Hanneshickel schrieb:
We are also happy to pay more than what the local model requires, but not three to four times the price on the open market.Well, what can one say about that attitude? You want something that simply doesn’t exist (like that, for you, in your area)! What are you going to do now? Stamp your foot angrily and threaten to fall apart at the seams? Life isn’t fair, but this forum won’t change that. The solution: wait, save more (which, as previously noted, should be easily possible), and hope for a bit of luck.
Clearly, that’s not what you wanted to hear, but that’s the reality! And forgive me, but given your income situation, your request really comes across as complaining on a very high to extremely high level!
You could also try filing a lawsuit. In the worst-case scenario, however, the municipality might then drop the local resident preference scheme (if it’s not legally secured) and either take no action or sell everything at the normal market price. After all, there is demand...
T
toxicmolotof12 Nov 2017 20:27If children are planned within the next 1-2 years anyway, this should at least be taken into consideration in your planning, as it reflects reality.
Have you ever participated in a points game like that? The husband registers the wife as a cleaner just to score an extra 3 points.
Have you ever participated in a points game like that? The husband registers the wife as a cleaner just to score an extra 3 points.
Tego12 schrieb:
I am not paid by the hour but by output, so a clear YES. Once my work is done, I can leave whenever I want. For those working on an assembly line under a collective agreement or clocking time at a government office, yes, making calls in the car doesn’t really help much... That statement is still nonsense; no one will spend 7 hours in the morning on the phone with you.
And no, you cannot nearly talk on the phone in the car as well as in the office. I have a colleague who occasionally does it in a new 5 series, current model, so it should be state-of-the-art regarding technology, soundproofing, etc. He often can’t fully follow the conversation or get his points across, and when we discuss several slides, it gets impossible. Even though he sometimes tries to review the slides and numbers beforehand and memorize as much as possible.
Grym schrieb:
That statement is still nonsense; no one will talk on the phone with you at 7 a.m.
And no, you can’t nearly have as good a phone call in the car as in the office. I have a colleague who does it occasionally in a new 5 Series, current model, so the technology, sound insulation, etc., should be state of the art. He often can’t fully follow the conversation, can’t make his points, and when we discuss a few slides, it completely breaks down. Even though he sometimes tries to review the slides or figures beforehand and memorize as much as possible. Why? It would be 2 p.m. in China. On the way home, you can then call the USA.
Although I already find it difficult to understand everyone well on good connections (during conference calls). It doesn’t get any better in the car. And then you regularly have dead zones and the connection drops.
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