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
Grym schrieb:
I know an expert like that too. Always drives as fast as possible on the highway, claims it’s no problem, but after every highway trip is always soaking wet and sweating.I’m neither soaking wet nor sweating, nor do I drive as fast as possible [emoji39]Driving 160 - 180 km/h (100 - 112 mph) on an open highway is more fun than stressful. I usually keep to the right. My husband simply enjoys driving at 130 km/h (81 mph) and seeing the low fuel consumption. [emoji6]
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HilfeHilfe15 Nov 2017 07:34kaho674 schrieb:
In Munich, I would say yes. It’s a good salary but not outstanding. If I had to grade it on a school scale from 1 to 6, I’d give it about a 3+. In Schwerin it would be around 2+, and in small towns like Friedland in Mecklenburg almost a 1-.Schwerin 6,500 net compared to 2 is a 2+, what world are you living in )))) In the East, people would be happy to have 2,500 net.
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HilfeHilfe15 Nov 2017 07:37Hanneshickel schrieb:
Wow, I didn’t realize my thread would escalate like this.
We no longer feel our income is average. Of course, you adjust your lifestyle accordingly—you don’t just go on one trip to Jesolo per year but maybe take three or four shorter holidays plus one long-distance trip annually—but otherwise, we live quite frugally.
Yes, we also drive nice cars, but I’m reluctant to give up the luxury we allow ourselves now with vacations and cars just to afford a house. We do reduce expenses, but only moderately.
That’s also why we chose a low financing rate.
The reason we haven’t saved much more yet is that we haven’t earned this kind of income for very long, and things like education or other expenses such as a wedding have been expensive in recent years. Now the real savings can begin.If your wife works part-time, you build a big house, and have kids, those big vacations probably won’t happen.
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HilfeHilfe15 Nov 2017 07:43toxicmolotow schrieb:
Wow, last month a headhunter tried to recruit me for the largest German leasing company based in Bad Homburg.
When it came to salary expectations, he initially mentioned 80,000 EUR gross (with 5 years of relevant professional experience). When I openly told him that I only have that amount of experience and, due to having 2 children and building a house, an uncompleted (but apparently credible) degree, he corrected it to 60,000 - 65,000 EUR.
When I politely pointed out that the rent (or mortgage payment) for a comparable new build within a 20-minute radius of Bad Homburg costs at least 2,000 euros, he didn’t have a response, and I declined politely. Let someone else take the offer. Even 80,000 EUR seemed like a joke given the local property costs.@toxicmolotow
What is an uncompleted degree? But you have very extensive expertise for that. I earned a part-time yodeling diploma.
Recently, I also spoke with a headhunter. Banking sector, good reputation, huge requirements. When I mentioned my current income and budget expectations, there was silence for a moment. My current salary (which is not huge but above standard pay scale) is in the upper range.
And why should I change jobs with 2 children and a house that’s not fully paid off? Well, because it could be a challenge. Um, no.
Maybe they could add 300 - 500 EUR gross per month. I politely declined.
She then explained in detail that expensive personnel are being let go and young people are hired with low salaries.
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toxicmolotof15 Nov 2017 08:13HilfeHilfe schrieb:
What is a course completed without formal credits? But you do have very extensive expertise. I have earned a part-time yodeling diploma "Scheinfreiheit" means having passed all exams and being approved to start the final thesis.
In other words: Even the final thesis doesn’t make me a better person.
Expertise may be based on studies, but it is only solidified and made concrete through practical experience.