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
Alex85 schrieb:
I consider BUZ to be quite unnecessary, for example Anyone who doesn’t consider BUZ unnecessary will probably find that 200€ won’t cover much.
Since there has already been cancer on both sides of my family, I personally don’t consider the insurance unnecessary.
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Bieber081516 Nov 2017 11:18BUZ really exists and apparently refers to combinations of disability insurance with a capital-forming life insurance policy. Generally, it is not recommended.
Disability insurance (DI) is a very important type of coverage. Unfortunately, it is often so expensive that it may be necessary to accept some gaps in coverage. In that case, only personal liability insurance and building insurance remain. (I assume that health insurance is already in place.)
Everything else is at most nice to have but usually not necessary, especially for people who can afford a house.
Disability insurance (DI) is a very important type of coverage. Unfortunately, it is often so expensive that it may be necessary to accept some gaps in coverage. In that case, only personal liability insurance and building insurance remain. (I assume that health insurance is already in place.)
Everything else is at most nice to have but usually not necessary, especially for people who can afford a house.
By BUZ, I meant pure occupational disability insurance.
And I consider it essential for employees because their ability to work is the only asset they have. Unfortunately, the risk is quite high.
Disability insurance costs almost nothing. You can also choose high coverage if you want. Legal protection insurance can become very important. At the latest after being taken advantage of once, people take it out. It only costs about ten dollars a month.
And I consider it essential for employees because their ability to work is the only asset they have. Unfortunately, the risk is quite high.
Disability insurance costs almost nothing. You can also choose high coverage if you want. Legal protection insurance can become very important. At the latest after being taken advantage of once, people take it out. It only costs about ten dollars a month.
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readytorumble16 Nov 2017 12:12I can only agree regarding disability insurance. Anyone who considers it unnecessary should take a couple of minutes to think it over and do the math with a calculator. In comparison, home contents insurance is a thousand times less essential.
Of course, disability insurance can quickly cost 60–80 euros or more. It’s tempting to skip it. However, you really shouldn’t, even in professions that are supposedly free of risks.
Of course, disability insurance can quickly cost 60–80 euros or more. It’s tempting to skip it. However, you really shouldn’t, even in professions that are supposedly free of risks.
B
Bieber081516 Nov 2017 13:25Joedreck schrieb:
Legal protection insurance can become very important. Alternatively, membership in a union or an employee association that provides legal protection in the area of labor law is an option. Otherwise, I believe it is quite possible to manage well in life without legal protection insurance.