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Impact of U.S. Africa Command on rental housing

Availability, quality, and prices of rental homes

Toytown Germany > Discussion forum > South Germany > Baden-Württemberg > Life in Baden-Württemberg
DedicatedOne
Greetings! I’m glad I found this site. I’m enjoying the wide variety of opinions shared. I’ve read many posts from members associated with the U.S. military presence in/around Stuttgart. I sincerely appreciate the valuable information and recommendations provided by everyone, especially the military and civilian employees associated with the U.S. European and Africa Commands.

I hope to stimulate discussion on an important topic for anyone considering a voluntary relocation to Stuttgart. While my questions may not be directly applicable to those ORDERED to Stuttgart (i.e., the military community), I believe everyone’s input is important, and I appreciate your future responses, in advance! I hope residents of Stuttgart not associated with the U.S. military will also post replies.

After reading several threads on Stuttgart relocation, I feel there needs to be a more extensive, robust discussion on the impact of the U.S. Africa Command (AFRICOM) on the rental housing market in/around Stuttgart. Some have stated “the housing situation is currently a nightmare, and will only worsen as Africa Command stands up.� Others stated “the housing situation has always been extremely chaotic and competitive, and it will be no different with the birth and infancy of Africa Command.� Hence, my first question is:

What is the impact of U.S. Africa Command on the availability, quality, and price of rental housing? Please include freestanding homes as well as apartments (or flats) as part of the discussion.

My second set of questions involves recent increases in the Post Allowance (also known as cost-of-living allowance) and Living Quarters Allowance (LQA) provided to most (if not all) civilian government employees recruited from the USA to serve at EUCOM and AFRICOM. On various public websites, it has been announced the Post Allowance for Stuttgart is now 60% of base salary. Not long ago, the Post Allowance for Stuttgart was 47%. Additionally, the LQA for Group 3 (WOF) was increased to $44K USD, maximum. My questions are:

Do members receiving these allowances feel they are fairly compensated in light of the significant increase in the cost-of living in Germany, and the dramatic decline of the U.S. Dollar-to-Euro exchange rate? Is there anyone who feels they are over-compensated?

NOTE: My motivation for asking if anyone feels they are over-compensated deals with a recent conversation I had with a Human Resources (HR) professional. The HR person stated “……nobody needs that much money to live well in Germany……..the Post Allowance and LQA are a waste of the taxpayer’s money, and employees lucky enough to receive these allowances are getting rich….� By the way, I vehemently disagreed with the HR person. I’d like to hear the opinions of EUCOM and AFRICOM employees (military, civilian, and Defense contractor) on the subject.

Again, thanks, in advance, for your thoughtful posts!
Nicole
QUOTE (DedicatedOne @ Mar 24 2008, 12:09 am) *
What is the impact of U.S. Africa Command on the availability, quality, and price of rental housing? Please include freestanding homes as well as apartments (or flats) as part of the discussion.

I don’t think AFRICOM has or will impact the amount of available housing. Twenty years ago before the drawdown, there were even more troops and civilians stationed here, most of whom were able to live off base. The areas around Panzer and Patch Bks have always been popular and sought after. The rents in these areas were always higher than outlying areas. North and West of Stuttgart and out towards Ludwigsburg have never been as popular and rents are still considerably lower. Traffic congestion is also an issue, some areas are consistently busy due to the traffic into and out of the Mercedes Plant. A lot of People tend to congregate near Patch and Panzer, it is their “island of safety� where everyone speaks English and everything is catered to their needs. The available jobs for spouses are mostly concentrated there as are the most popular schools.

German Landlords consistently charge American Renters more for rent than their German counterparts. One of the first questions asked is “What rank/grade� are you?� They know often to the penny what housing allowance is applicable and will charge as much as they can. If you aren’t willing to pay it, they know someone else will have no problem doing so.
The housing office in my opinion, is another thing that needs to be closely looked at. There are some shady dealings going on there, yet it seems to be unregulated. A lot of us have horror stories about ‘some’ of the employees and their business relationships with selected Realtors.
I’d say that 75% of the “quality� housing as you put it, is offered through the realtors. For the privilege of using said Realtors to find these better houses, you are paying them 2 or 3 months rent in fees, plus two months deposit and a month in advance. Renting a Nice house can end up costing you 12,000 Euros.

QUOTE (DedicatedOne @ Mar 24 2008, 12:09 am) *
My second set of questions involves recent increases in the Post Allowance (also known as cost-of-living allowance) and Living Quarters Allowance (LQA) provided to most (if not all) civilian government employees recruited from the USA to serve at EUCOM and AFRICOM. On various public websites, it has been announced the Post Allowance for Stuttgart is now 60% of base salary. Not long ago, the Post Allowance for Stuttgart was 47%. Additionally, the LQA for Group 3 (WOF) was increased to $44K USD, maximum. My questions are:

Do members receiving these allowances feel they are fairly compensated in light of the significant increase in the cost-of living in Germany, and the dramatic decline of the U.S. Dollar-to-Euro exchange rate? Is there anyone who feels they are over-compensated?

It certainly isn’t cheap to live here any more, however I doubt you will find any civilian who is really struggling to make ends meet. There are less Mercedes and BMW’s in the parking lots than there were 10 years ago, but the civilians I know, ourselves included are able to live in very nice houses and have little trouble in paying the bills. Everyone has tightened their belt, possibly eating out less and taking less trips. I also know where the cheapest places to shop are.
I highly doubt you will find anyone who will publicly admit that they are over compensated but I know we live a much better life as civilians than we did in the military.
moctoj2
At least you found this forum before you moved here. I didn't find it until I lived here for 6 mo. By then, I was used to the culture shock and was grateful for all of the new information.

We are non-military and found housing through my husband's employer. There is a 3 month deposit requirement and 90 day notice of termination of lease. If you want to find something on your own, you'll need a translator. Finding a single family home may be difficult. We are in an apartment building near Ludwigsburg. If we had a car, it would take about 30-45 minutes to get to Patch and Robinson and longer during evening rush hour. We use the train (S3) to get to the part of town around the base and it takes 40 minutes. Our rent is 600+ euros for about 900 sq feet. It includes german cable which offers two english channels - BBC Int'l News and CNN Int'l News. There are 50 channels and nothing on. We got a satellite dish and pay through the nose for it.

We had to purchase our kitchen from the former tenant which is rarely done (according to my sources). I'm talking everything in the kitchen we paid for. Sink, countertops, cabinets, dishwasher, range and fridge. The only fixtures in the apartment were the tub, sink and toilet in the bathroom. Most of the ceiling lights we had to purchase after moving in. But if you've read the threads, you probably know this. That was the biggest culture shock I had to suffer.

There is no air conditioning in this building and most buildings I've been to. Window air conditioners won't fit the windows and I haven't seen one since I moved here. Our electric/heat runs about 60 euros a month and water is also paid yearly here. We haven't seen our yearly bill yet. We have 2 parking spaces we pay 25 euros a month for but that's because I couldn't find a job so we couldn't afford a car.

One thing about doing business here, everyone uses bank transfers. Open an account at a local bank (lots of threads here on the best one) and get used to the fact that your rent will be deducted from your account every month. I don't think the concept of writing a check is used here. Credit cards usage is also rare and cash is carried everywhere.

Food is cheap on base and I wished I had a friend in the military. There are somethings you cannot subsitute here. Check those supermarket threads. Food in this part of Germany isn't too expensive, but you'll need to learn the german words for things.

Finally, if you earn in dollars and spend in euros, it will hurt.
Good luck.
bignellie
It costs a lot to live here...bottom line. The housing office screws you by advertising the landlords who charge twice as much as the local Germans pay. If you speak German or have a friend who will help you then you are golden. Otherwise the housing office rips you off. The funny thing is that the money is actually coming from the government, so you would think it would be in the governments best interest to make sure the housing office wasn't so jaded. But they don't and it isn't just here every housing office with locals working in in them everywhere I have been overseas is the same way.

This being said the Stuttgart area is one of the more expensive areas to live in. I have friends in the Ramstein and Ktown are and their rent is inflated but they get a lot more house for their money compared to the Stuttgart area.

Best wishes.
travelingpac
QUOTE (Nicole @ Mar 24 2008, 9:03 am) *
I don’t think AFRICOM has or will impact the amount of available housing. Twenty years ago before the drawdown, there were even more troops and civilians stationed here, most of whom were able to live off base. The areas around Panzer and Patch Bks have always been popular and sought after. The rents in these areas were always higher than outlying areas. North and West of Stuttgart and out towards Ludwigsburg have never been as popular and rents are still considerably lower. Traffic congestion is also an issue, some areas are consistently busy due to the traffic into and out of the Mercedes Plant. A lot of People tend to congregate near Patch and Panzer, it is their “island of safety� where everyone speaks English and everything is catered to their needs. The available jobs for spouses are mostly concentrated there as are the most popular schools.

German Landlords consistently charge American Renters more for rent than their German counterparts. One of the first questions asked is “What rank/grade� are you?� They know often to the penny what housing allowance is applicable and will charge as much as they can. If you aren’t willing to pay it, they know someone else will have no problem doing so.
The housing office in my opinion, is another thing that needs to be closely looked at. There are some shady dealings going on there, yet it seems to be unregulated. A lot of us have horror stories about ‘some’ of the employees and their business relationships with selected Realtors.
I’d say that 75% of the “quality� housing as you put it, is offered through the realtors. For the privilege of using said Realtors to find these better houses, you are paying them 2 or 3 months rent in fees, plus two months deposit and a month in advance. Renting a Nice house can end up costing you 12,000 Euros.
It certainly isn’t cheap to live here any more, however I doubt you will find any civilian who is really struggling to make ends meet. There are less Mercedes and BMW’s in the parking lots than there were 10 years ago, but the civilians I know, ourselves included are able to live in very nice houses and have little trouble in paying the bills. Everyone has tightened their belt, possibly eating out less and taking less trips. I also know where the cheapest places to shop are.
I highly doubt you will find anyone who will publicly admit that they are over compensated but I know we live a much better life as civilians than we did in the military.

Just a quick reply from me, but I think Nicole gave you some good advice.
We moved here in December. We paid a realtor a little less than 1.5% of the monthly rent (as a finder fee). A good house is to be found with or without the impact of AFRICOM. I know the realtors will tell you that you must decide quickly if you find a house since there is "so much competitition out there' -it is a sales tactic and no doubt they will show you some really poor houses. Hold firm to your housing requirements and you will find something. I know someone who found their house thru co-workers. As soon as they got to Germany, they asked everyone they knew if there were any houses becoming available. They found their nice house without paying a realtor and they are in a really nice location. Anyway, I think as the demand grows, so will the supply. The germans know they get more rent from us Americans, so they will soon want to get on the gravy train rent to us.

It is too bad that the housing office doesn't really look after "our" interest or the US gov't's. I think they are in a real strong position to demand that we pay the same rent as Germans. It depends on your timing when you get here. I have had bad experiences with the housing office but have talked to others who had great experiences.

You will get plenty of money for housing here and things are not THAT bad. I came here from the UK where it was Much Much Much more expensive! It is a great location and lots to see and do!
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