ᐅ No building plot available due to new EU local residency model?
Created on: 11 Nov 2017 21:49
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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:
Those who have studied, have at least 5 years of professional experience, and still earn less than 3000 net per month with a 40-hour workweek are somehow doing something wrong...
They might as well have completed a commercial apprenticeship and work at a bank counter. (Where, with all the benefits, they might even earn more).You could have a look for fun at the current Stepstone salary report.
There you can clearly see that for a graduate engineer with 5 years of experience, 3000 net per month = €63,000 gross annually (assuming tax class 1 or 4) can be an average. In other industries, regions, or smaller companies, however, earnings for a graduate with 5 years of experience can be significantly lower.
We are not even talking about 4000 net = €90,000 gross per year yet.
kaho674 schrieb:
Normally, the woman drives the Passat and the man drives the Polo, right? That's true. It's the same for me. Haha
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readytorumble14 Nov 2017 17:37@Farilo: Just because you see many expensive cars and beautiful houses and properties, does that mean all statistics and so on are untrue?
... What nonsense!
... What nonsense!
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Hanneshickel14 Nov 2017 17:55Wow, I didn’t realize my thread would develop like this.
With our income, we no longer consider ourselves average. Of course, we adjust our lifestyle accordingly—we don’t just take one trip per year to Jesolo; instead, we go on three or four shorter vacations and once a year on a long-haul trip. Otherwise, we generally live quite frugally.
Yes, we also drive nice cars, but the luxury we allow ourselves today with vacations and cars is something I’m reluctant to give up just for a house. We will reduce spending, but only moderately.
That’s also why we have a low financing rate.
The reason we haven’t saved more yet is that we haven’t had this level of income for long, and because education and other expenses, like a wedding, were costly in recent years. Now, we are basically just starting to save seriously.
With our income, we no longer consider ourselves average. Of course, we adjust our lifestyle accordingly—we don’t just take one trip per year to Jesolo; instead, we go on three or four shorter vacations and once a year on a long-haul trip. Otherwise, we generally live quite frugally.
Yes, we also drive nice cars, but the luxury we allow ourselves today with vacations and cars is something I’m reluctant to give up just for a house. We will reduce spending, but only moderately.
That’s also why we have a low financing rate.
The reason we haven’t saved more yet is that we haven’t had this level of income for long, and because education and other expenses, like a wedding, were costly in recent years. Now, we are basically just starting to save seriously.
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toxicmolotof14 Nov 2017 20:22Farilo schrieb:
I don’t want to offend anyone here. And money definitely isn’t everything and shouldn’t define someone.
Still; 5 to 6 years of university studies, plus 5 years of work experience, and then only a net salary of 2500? That shouldn’t be the case.Wow, last month I was approached by a headhunter from the largest German leasing company based in Bad Homburg.
When it came to salary expectations, he initially mentioned 80,000 euros gross (with 5 years of relevant work experience). When I openly told him that I only have that experience and, due to having two children and building a house, an unfinished (but exempt) degree, he adjusted it down to 60,000 to 65,000 euros.
When I politely pointed out that rent (or mortgage payments) for a comparable new build within a 20-minute radius of Bad Homburg costs at least 2,000 euros per month, he was lost for an answer and I declined the offer politely. Someone else can be foolish enough to accept that. Even 80,000 euros seemed like a joke given the housing costs there.
Tego12 schrieb:
Yes, I am a big troll, fat and sweating True!