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:
Additional costs 250, savings reserve 250, car 750, food 850, insurance 200, clothing 150, phone/internet 50, plus a loan repayment of, let’s say, 1500€.
That’s exactly 4K.Somehow the money just disappears, that’s clear.
It’s a matter of priorities. Someone with 4k per month and a 350k loan, to stay with your example, wouldn’t spend 750 on a car but rather half of that. Food expenses can range from discount stores to gourmet shops or something in between. With 850, you’re probably at the gourmet level and/or eating out regularly.
Getting 200 for insurance is also not that easy. Excluding car insurance, we’re probably around 30, just as an example.
Savings reserves in a newly built house—commendable, but more of a theory. I would call it dead capital.
Musketier schrieb:
850€ for food seems quite a lot to me as well. On average, we spend about 600€ for 3 people, which includes meals from the canteen and snacks at the daycare, as well as other non-food items from the supermarket. (I don’t separate the receipts.) However, if you often eat out in the evenings or on weekends, it’s easy to reach higher amounts.
750€ for one car is a lot, but for two cars, that’s actually quite little. Respect! I like that. Honestly.
I easily spend around 350€ per month. But I don’t cook every day, so I often have to eat lunch outside.
As for the money spent on the car, well, you have to finance that too (or take it into account). For example, if you live 40 km (25 miles) from work, that’s 80 km (50 miles) per day. Two cars. Financing a "cheap car," wear and tear, taxes, fuel, repair reserves... 375€ per car goes away pretty quickly... you’re right.
Müllerin schrieb:
A 200€ insurance policy can be arranged very quickly.
With additional health insurance and disability coverage, for example, depending on the coverage amount, a single person can easily spend 200€.Well, if you choose everything the industry offers, that’s probably true -_-
There are already useful insurances that add up over time: liability, legal protection, household contents, building, dental supplement, car insurance, and income protection insurance (not a complete list). In my opinion, none of these are dispensable. But I still don’t come close to €200/m (about $220/m).
Joedreck schrieb:
There are already sensible insurances that do add up. Liability, legal protection, household contents, building insurance, supplemental dental, car insurance, and income protection insurance (not exhaustive). In my opinion, none of these are dispensable.
But I also don’t get to 200€/m (5 inches per meter) there.
Car insurance was a separate cost category, as were additional building-related expenses, so those are not included in the 200€ figure.
I consider legal protection and especially income protection insurance to be quite unnecessary, unless there is an assumed higher risk.
Liability, household contents, and term life insurance for survivors’ protection (although this is not designed so that the house is gifted after death, but rather to ease the child-rearing period until the children enter the workforce) I consider important.
This thread is fantastic. All topics related to life bundled in one thread.