dmbartender

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About dmbartender

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Profile Information

  • Location Rosenheim, Bavaria
  • Nationality american
  • Hometown Milwaukee
  • Gender Male
  • Year of birth 1980
  • Interests Photography, fishing, travel, american football
  1. Bavaria and the real estate bubble

    Wow, now we even have Corona to deal with since March, and the prices are climbing even higher - about the mid 800s for a Doppelhaushälfte or Reihenhaus. Long gone are the days where a payoff of a home within a lifetime was possible.   What I don't get is, how in the heck are people doing this? Ok, if you earn €4.500 a month after taxes like some teachers do, than I guess it may be possible. But for me as an engineer these prices are too high. I recently found out our Kindergartenerzieherin and her policeman husband just bought a house for $850k. I don't get it. I suppose it doesn't matter anymore what job you have in Germany, everyone is buying houses, I just don't know how.   How are the prices looking in Munich?
  2. Hi James,   I have no experience with dividends, but I think as a US citizen, that the dividends would be taxed in the US, not in Germany. Maybe someone else will chime in with more advice. Otherwise, call the IRS. It sounds strange, but they actually answer, and help.   Cheers,   Tom
  3. Hey James,   I have been doing both German and US taxes since 2010. I always do my German first, and then the American. You have to keep things separate, so that any money earned in Germany gets taxed here, and vice versa.   As a US citizen, you will need to fill out a 2555 form, in order to exclude your foreign earned income. This will likely be most of your earnings. Then, you just enter the rest as usual on your 1040, along with the necessary appendices. I never end up paying American taxes, since I can exclude all of my foreign earned income. Even if I had income in the states, the standard deduction would likely cover that.   By the way, I called the IRS numerous times in the beginning to make sure I was doing things appropriately. They were willing to help. The german Behörden are forbidden to give tax help.   Tom    
  4. Bavaria and the real estate bubble

    Hi Karin, we have actually been in the market since 2012. I thought that €450k was too much back then, and I think that 800k is too much now. We have looked at about 12 places, but there has been no Eureka moment, since most places were just too expensive. I mean back when they cost €450k the banks wouldn't give us a loan, even though we had 100k Eigenkapital. Now, we have less EK, and the banks will finance 100%, but I do not think that is prudent. I don't think I can live with €800k debt, with no chance in my lifetime of paying it off...
  5. Bavaria and the real estate bubble

    Hi Karin, we have actually been in the market since 2012. I thought that €450k was too much back then, and I think that 800k is too much now. We have looked at about 12 places, but there has been no Eureka moment, since most places were just too expensive. I mean back when they cost €450k the banks wouldn't give us a loan, even though we had 100k Eigenkapital. Now, we have less EK, and the banks will finance 100%, but I do not think that is prudent. I don't think I can live with €800k debt, with no chance in my lifetime of paying it off...
  6. Bavaria and the real estate bubble

    Hey Karin,   Well, I mean there is a huge disparity in the price of renting vs owning. We currently rent for €1.400, and if we would buy something for 800k, then our monthly rate would be €3k. That would be impossible, since it would take up over 80% of my salary. We also need to buy groceries, food, and supplies.   The best I could do is maybe a 2 br apartment for 450k, but we have two kids, and that would be cramped. Plus, they wouldn't have a yard. Social distancing and staying at home is not great, but way better with a yard. We probably would have gone bonkers by know if we'd been sitting cramped in an apartment the last 6 weeks.
  7. Bavaria and the real estate bubble

     
  8. Bavaria and the real estate bubble

    Does anyone think the Corona virus will affect the housing market? I have the feeling that the market will remain strong, because nobody is moving anywhere. It might be that the market stagnates for a while, but will pick up again as soon as it is safe. I think the prices will stay the same.    Thoughts?
  9. Bavaria and the real estate bubble

    I've been watching the real estate market here around Rosenheim the last three years, entertaining the idea of buying a home. With ultra low interest rates and fear of inflation and currency reform, many people want to transfer their savings into Betongold. As a result, an ordinary single family home in our village of 6000 people costs half a million euros, whether old our built new. The housing prices have been rising at 5-10% per year.   I wonder how long the real estate market can keep this high? I feel that if interest rates can no longer be artificially suppressed that enough people will have to default, vacating possibly enough homes to bring the local market back somewhat to realistic rates.   Would anyone with more experience in this arena like to weigh in? Should I force buying a house now, or cross my fingers for a more favorable buyers market in the distant future?