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
Zaba12 schrieb:
Here are some relatively recent figures from February 2017.
The median is around €3000 gross. So, quite far from your €4000 net.
An acquaintance with a gross income of €75,000 plus a working wife had a house built for €600,000 (with a 10-year fixed interest rate) and leased two new cars. I don’t even need to look outside to know that many people are all show. I prefer those who keep a 10-year-old Passat in their carport and whose wife drives a 15-year-old Polo.
You don’t have to pretend to be someone you’re not.
Not every degree earns you €4000 net. There are also people who choose their field of study based on personal preferences or interests and then earn around €1950 net. That wouldn’t be my choice, but you shouldn’t generalize on this topic.
Regarding leasing, any normal clerk or university graduate earning €1950 net can afford to lease a 5 Series BMW. Whether you want to is another question.
Thanks.
However, this table is somewhat irrelevant to me because it also includes people who are basically near social welfare level and those earning €600 to €700 more. (Sounds harsh, but that’s the reality. €3000 gross equals about €1950 net.) That distorts what I mean...
I don’t want to start a fundamental debate again, but anyone in Germany who thinks that €300 net above social welfare qualifies them as middle class has read too much tabloids.
And as you rightly said... many can lease a 5 Series with a low salary.
But a 5, 6, 7 Series, G55, Cayenne, Maserati, S-Class, plus a house and second and third cars, wife not working, two kids, holidays two or three times a year… That’s not sustainable without serious money. And there are THOUSANDS of those!
You said yourself, “One (1) acquaintance of yours has...” Look around how many more there are... Won’t be many. The majority isn’t like that.
Those who have studied, have at least five years of work experience, and still earn less than €3000 net on a 40-hour workweek are doing something wrong somehow...
They could have done a commercial apprenticeship and worked at a bank counter instead. (Where, with all benefits, they might even earn more).
In my department, about 150 people with university degrees work, and we pay collective agreement wages, so we are quite representative. The average salary with 5 years of professional experience is around 55,000 gross.
If you are the sole earner, a net income of 3,000 per month is quite realistic. Without a management position, however, reaching 4,000 is very difficult.
If you are the sole earner, a net income of 3,000 per month is quite realistic. Without a management position, however, reaching 4,000 is very difficult.
Farilo, I think that’s really arrogant and completely disconnected from reality. :-(
Do you honestly believe that, for example, almost all social workers are doing something wrong? There are simply jobs where, even with a degree, you often earn "nothing"—at least not the net 3,000 you mentioned!
Even in our government office, there are plenty of graduates who are classified similarly to pay grade 3.QE earning less than 3,000 net (and please don’t take this as another criticism of the public sector! I just want to show that, according to your opinion, a lot of people are doing many things wrong).
Do you honestly believe that, for example, almost all social workers are doing something wrong? There are simply jobs where, even with a degree, you often earn "nothing"—at least not the net 3,000 you mentioned!
Even in our government office, there are plenty of graduates who are classified similarly to pay grade 3.QE earning less than 3,000 net (and please don’t take this as another criticism of the public sector! I just want to show that, according to your opinion, a lot of people are doing many things wrong).
Zaba12 schrieb:
I prefer people who have a 10-year-old Passat in their carport and whose wife drives a 15-year-old Polo. Normally, the wife would drive the Passat and the husband the Polo, right?
Maria16 schrieb:
Do you really believe that, for example, almost all social workers are doing something wrong? There are simply jobs where, despite having a degree, people often earn "nothing"—at least not the €3,000 net you expect! My respect for the profession, but yes, they are doing something wrong! The teaching profession in Germany needs a completely new image and also better pay!
B
Benutzer1914 Nov 2017 15:52@Farilo According to Google, over 80% of the population in Germany do not have a university degree. So you are writing about a minority and presenting it as the only true ideal.
Additionally, the number of people who need a second job to make ends meet is steadily increasing. Sorry, but your attitude is so unrealistic and detached from reality.
Additionally, the number of people who need a second job to make ends meet is steadily increasing. Sorry, but your attitude is so unrealistic and detached from reality.