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
Farilo schrieb:
If by "such an income group" a "wealthy group" is meant, then I don’t understand that at all...
6500 together is... common...Seriously? I mean, we don’t earn badly either. But 6500 euros is far from normal.
I also find it strange when people calculate with 6500 euros (so 2 full earners) when planning for children. Somehow, it feels like self-deception, since this situation (both partners earning full-time again) usually only happens again 2-4 years later or more, with much less disposable income.
Zaba12 schrieb:
Seriously? I mean, we don’t earn badly either. But 6500€ is far from normal.
I’d say in Munich it is. It’s a good salary but not outstanding. If I had to grade it on a scale from 1 to 6, I’d give it a 3+. In Schwerin it would be a 2+, and in places like Friedland or similar small towns in Mecklenburg, almost a 1-.kaho674 schrieb:
In Munich, I would say yes. It’s a good salary but not outstanding. If I had to grade it on a scale from 1 to 6 (1 being the best), I’d give it a 3+. In Schwerin, it would be around a 2+, and in small towns like Friedland in Mecklenburg, almost a 1-. So, living on parental allowance for 1–2 years and then with one full-time earner (like the original poster in the future) means living at the subsistence level in Munich?
Zaba12 schrieb:
Seriously? I mean, we don’t earn badly either. But €6500 (about $7000) is far from normal.Well… two professionals with full salaries… that usually results in this kind of income.
And just look at the houses around you… take a look at the cars on the street…
You don’t really believe they all inherited their wealth, do you? Some people always say “it’s just leasing!” Well, even those payments have to be covered in the first place.
I’d be interested in the average salary in Germany if you excluded all social welfare recipients, people on basic income support (Hartz IV), and those earning €500 (about $540) above Hartz IV.
So, if you can’t earn at least €4000 (about $4300) net per person, then why bother studying at all? (From a financial perspective)
Farilo schrieb:
Well... two university-educated full earners... that usually turns out like this.
And just look at the houses around you... Look at the cars on the street...
You don’t really believe they all inherited everything, do you?! Some then always shout “It’s just leasing!”. Well, even those payments have to be covered first.
I would be curious about the average German salary if you excluded all social welfare recipients, Hartz IV recipients, and those earning +500 euros net above Hartz IV.
So, if you can’t earn at least 4,000 euros net per person, why would you even study?! (From a financial point of view)Here are some relatively recent figures from 02/2017.
The median gross salary is 3,000€. So, quite far from your 4,000€ net.
An acquaintance earned 75,000€ gross, his wife works, and they built a house for 600,000€ (with a 10-year fixed interest rate) and leased two new cars. I don’t need to look at the street to know that many people are show-offs. I much prefer people who have a 10-year-old Passat in their carport and the wife drives a 15-year-old Polo.
You don’t have to pretend to be someone when you are nobody.
Not every degree leads to a 4,000€ net salary. There are people who choose their field of study based on personal preference or interests and then earn around 1,950€ net. That wouldn’t be my choice, but the topic shouldn’t be generalized.
Regarding leasing, any normal clerk or university graduate earning 1,950€ net can afford a BMW 5 Series. Whether you want to is another question.
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