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
Wage dumping? That doesn’t really happen here. At most, some professions are oversaturated because everyone somehow wants to work in an office.
As a cleaner, you can earn more than some average office clerks or industrial clerks.
Since when do banks pay well?
I think a net income of 3,000 (about $3,300) is not necessarily low, and many people with bachelor’s or master’s degrees don’t even earn that.
However, there are also many who earn less than 3,000 net per full-time earner and still own a house with relatively good financing.
As a cleaner, you can earn more than some average office clerks or industrial clerks.
Since when do banks pay well?
I think a net income of 3,000 (about $3,300) is not necessarily low, and many people with bachelor’s or master’s degrees don’t even earn that.
However, there are also many who earn less than 3,000 net per full-time earner and still own a house with relatively good financing.
haydee schrieb:
I don’t necessarily think a net income of 3,000 is low, and many people with a diploma or master’s degree don’t earn that either.
However, there are also many earning less than 3,000 net per full-time earner who have a house with relatively good financing.Wow. Intense. I wouldn’t have expected that with a master’s or diploma...But financing, say, 350,000 with a net income of 4,000 is quite a statement!
Additional costs 250, reserves 250, car 750, food 850, insurance 200, clothing 150, phone/internet 50, then the loan repayment of, let’s say, 1,500 euros.
That adds up to exactly 4,000.
There’s no budget left for vacation, broken washing machine, cinema, braces, sports club, toys... That’s tough.
I wouldn’t do it with 4,000 net...
Kekse schrieb:
Why on earth would anyone spend 850 on food or 750 on a car?850€ (about $900) for food also seems quite high to me. On average, we spend around 600€ (about $640) for three people, including meals at the cafeteria and snacks at kindergarten, as well as non-food items from the supermarket. (I don’t separate the receipts.) Anyone who often eats out in the evenings or on weekends will quickly reach higher amounts.
750€ (about $800) for a car is a lot; for two cars, however, it’s rather low.