dmbartender

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Everything posted by dmbartender

  1. 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
  2. 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    
  3. 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...
  4. 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?
  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

    Hey guys, it is now nearly 5 years since I started this thread.   We still haven't bought a house, but we have come close a couple of times. We nearly got one for 525k in 2017. Then, we almost got a EFH in 2018 for 660k, but that was also too much. Now we are looking at prices around 750k.   The house prices have gone way over our heads, and continue to pass us by. I don't know why we still have hope that something affordable and decent will come on the market. If this trend continues, in just a few years we will be about 1 Mil for a DHH or REH.   On the other hand, if the Leitzins is eventually raised, and house prices stagnate, it will still be just as expensive or more, due to the interest.    I would say we should have bought something in 2015 for 450k, but the banks wouldn't give us a loan back then. They wanted 28% down.   What do you all think? Will the prices ever come down to where a normal family might be able to buy one, like 400k?