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
Hanneshickel schrieb:
Wow, I didn’t expect my thread to develop like this.
We no longer feel our salary is average… but otherwise, we generally live quite frugally.
The luxury we allow ourselves today with vacations and cars is something I’m reluctant to give up because of a house…
Now the real saving begins.Yes, this is quite an active thread again… your posts even get lost here [emoji6]
You’re probably not average, no matter the region, and by now you should have noticed that here.
And yes, it’s completely understandable to want to enjoy life first and spend money on vacations and such.
But the fact is, anyone wanting to build a house, even with a good salary, needs to save for it. If you don’t accept that, building a house is difficult — even with special regional building programs or planning permission models. You still have time to save; once children arrive, the income gets tighter — then saving is no longer feasible.
Luxury and homebuilding rarely go together for “average” people and others either [emoji6]
ypg schrieb:
You could still save now; once children arrive, the income gets tighter – then saving is out of the question. Saving is really not popular at the moment. I don’t understand why anyone would want to do it now. I don’t think money will get any cheaper than it is.
HilfeHilfe schrieb:
Expensive staff are being laid off, and there is an attempt to hire young people with low salaries.Isn’t this approach nothing new...???
At some point, it will be our turn as well.
Here, department managers are being dismissed by the dozens because of major restructuring. The experienced managers are just considered a burden for the executive board and are being replaced by 34-year-old startup yuppies with no industry experience.
kaho674 schrieb:
Saving money is totally uncool right now. I really don’t understand why anyone would do that these days. True, you don’t have to save or build up equity since you can just borrow an extra €100,000 (about $110,000) at 2% interest??? *oh man*
kaho674 schrieb:
I don’t think money will get any cheaper than this.I’ve been reading that for 8 years now in all kinds of financing and construction forums.
Zaba12 schrieb:
So, you don’t have to save or build equity because you can just borrow an extra €100,000 at 2%??? *oh man* What is he trying to say? I’m not quite following.
Farilo schrieb:
Those who have studied, have at least 5 years of professional experience, and still earn less than 3000 net on a 40-hour workweek must be doing something wrong...
They could have also completed a commercial apprenticeship and worked at a bank counter. (Where, with all the benefits, they might even earn more).You must be joking—do you really think 70k+ jobs just fall from the sky in times of wage dumping? The trend is steadily going downward because more and more unqualified people, influenced by government and industry propaganda, believe they all have to go into STEM fields now.
The days when having a degree meant earning significantly more than those without one are long gone.
When I see what some tradespeople earn, it makes me feel sick and wonder why I even bothered to study.