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
Maria16 schrieb:
Farilo, I think that’s really arrogant and out of touch with reality. :-(
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 nowhere near the $3,000 net salary you mentioned!
Even in our government office, there are many graduates who are classified similarly to the 3rd salary grade and earn less than $3,000 net (and please don’t take this as an attack on the public sector! I just want to show that, according to you, many people are doing things very wrong). Maria16, I’m not trying to sound arrogant… I also think it’s unfortunate that things are the way they are.
But just because many or even all social workers do it like that doesn’t mean it’s right.
I don’t want to offend anyone here. And money definitely isn’t everything and shouldn’t define a person.
Still, a degree taking 5–6 years plus 5 years of professional experience, and then earning $2,500 net? That shouldn’t be the case.
kaho674 schrieb:
Normally, the woman drives the Passat and the man drives the Polo, right? Even if your intention is just to switch the roles of man and woman here, there is some truth to it.
At least I notice that fathers (with company cars) like to use the “primary car” to commute to work (especially if it’s a company car). The parking lot here is full of Tourans, Passats, and A4s.
I always wonder if they have two “primary cars.”
You don’t really need much to get to work. Meanwhile, the family squeezes into a smaller car during the day because the larger vehicle is parked at the company lot.
I see this repeatedly here; our neighbors are similar (he drives 7 km (4 miles) to work in a company Passat, she drives an 8-9 year old Astra with two kids). Of course, thanks to the fuel card, the Passat makes weekend trips to the bakery running on diesel.
SchleswigBau schrieb:
@Farilo According to Google, over 80% of the population in Germany do not have a university degree. So you are talking about a minority here and elevating them as the only truly educated group.
Additionally, the number of people who need a second job to survive is steadily increasing. Sorry, but your attitude is so unrealistic and out of touch. All good, SchleswigBau. I apologize.
80% of people earn "a bit" above social welfare benefits. Ok.
And the few luxury cars I see on the streets every day, the few luxury homes I see everywhere around here, the rents being paid, and the land prices well over 300 EUR/sqm (about $315 per sq yd) are all being paid for on credit by the 20% of society.
I am surrounded by the 20%'ers.
All good.
B
Benutzer1914 Nov 2017 16:07Farilo schrieb:
All good,
All good. Yes! My advice to keep it that way: Don’t ever take off your blinders!
Do you know what I find really amusing? You criticize someone for knowing 'one' and then you yourself talk about 'a few luxury cars.' Brilliant! Thanks! *wave*
SchleswigBau schrieb:
Do you know what I find really amusing? You criticize someone here for knowing ‘one’ and then you yourself talk about ‘a few luxury cars.’ Wonderful! Thanks! *wink* I don’t understand this statement...
But that’s not a problem either.
I keep my blinders on and see only 20%. You stay open-minded and clear-headed, earn 2000 net (after tax) as a graduate, and pay off your house over 70 years with remaining debt.
Again, all good.
B
Benutzer1914 Nov 2017 16:29Farilo schrieb:
But that’s not a problem either. Exactly! Unfortunately, now you’re mixing things up, which is a bit annoying, so I’m out of here. Especially since you’re also starting to make assumptions. I studied? I earn 2k net? I own a house? But in the end, you smooth everything over again, you rhetorical fox!