House prices in Germany

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Hi all,

 

I have been looking on the internet in regards to house prices (buying) in Germany - most notably in Braunschweig.

 

I have come across a few houses and had a look at their prices - for example, this house here http://www.immonet.de/niedersachsen/braunschweig-maisonette-kaufen-87963c1114-3.html

 

It says - Kaufpreis: 110.000,00 € - For a 4 room place, thats damn good! (that is $110,000 yeah?).

 

I live in Australia and i converted that and that would be $145,531.34AUD - i would never be able to buy a place like that in Australia!

 

Am i reading the page correctly or are houses cheap? I am slowly continuing making plans on moving there and want to know if i should save up alot more. Or when you live in Germany, 110,000Euro is actually very expensive?

 

Sorry im just abit confused thats all!

 

Thank you

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It's an apartment you linked, not a house. Germans mostly rent, they don't buy. It is 4 rooms in 90qm, wich means small rooms. One of those low ceiling - small rooms post war buildings.

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Markets are very localised here. Some parts of Germany are pricy, others dirt cheap. Some places really have no market at all, you can pick something up for a few k. Same can apply within small locales.

 

I tend not to trust the "I could never by this in my home nation" line. It tends to mean: "I could not afford to buy this in a sought after place in my home nation for the same price". But you are not actually looking at a sought-after place, rather something at the lower end which probably does also exist in your home nation if you look lower end there. (For instance, 110k Eur would buy me nothing in London UK and a lot of other places, but would easily buy a 4 bed semi in my home town because it's not a place people want to go).

 

A lot of industrial NRW would not be my first place to look (I don't mean Köln etc). I know enough people who have migrated south from there. They often tell me they their family have big houses but they are worth zip as there is just no market.

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Thank you - in regards to house or apartment/flat or whatnot, either way if they are the actual prices then that would be great (even if what i linked is a low end price).

 

The house prices in Perth (AU), the lowest average is probably around $300,000-$350,000AUD and for a single income earner that unfortunately is very hard.

 

I just wanted to see possibly the reasons behind a cheaper house prices, renting or buying - possibly comparing job earnings aswell.

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Agent and notary fees will add on up to 10% of the price and for that particular property there is also a monthly service fee of €200. Braunschweig is a fairly cheap part of Germany due largely to the fact that it's shite; in the Munich region you'd probably pay double for the same property. Same in Australia: Sydney is (very) expensive, while a shack in a swamp somewhere will be cheap.

 

Also, "four-room" does NOT mean "four-bedroom". It means kitchen, bathroom plus four other rooms, i.e. living room and three bedrooms or living room, dining room and two bedrooms.

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My place in Berlin, which I bought in 2007, (70 M²) cost me about one-third of what I sold my place in Bristol, UK for. That place was only 60 M².

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Bristol is much higher up the UK hierarchy than Berlin is here, so the "like-for-like" thing again. 80k buys a 3-bed semi in my UK home town....with significant change. But people strangely prefer to live in places like Bristol! My 2 bed flat in DA (upper-end Germany) was the same as my 2.5 bed house in London (85sq m). I'm grateful I bought at GBP = 1.5 Eur rates and before the recent rises here, definitely the thing that worked best for me here :) .

 

I think AUD is going well vs EUR at the moment and so prices probably do appear quite good.

 

If I had 110k to spend in Germany, I'd definitely put it in Berlin before NRW :) . What you have here is more choice at the "lower end". More much supply there but that also reflects in re-sale values of course.

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Average price for a free-standing house in this area is about 250k.

 

What you looked at is a so-called "Maisonette Wohnung", a two-floor apartment that is part of another building.

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There are other things to consider, too.

 

Places up to 80M² in Berlin seem to be affordable, but once you go over that limit, the prices rise exponentially.

 

A place twice the size of mine won't cost twice as much, but 3 or more probably 4 times as much.

 

I have no idea why, either!

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I just wanted to see possibly the reasons behind a cheaper house prices, renting or buying - possibly comparing job earnings aswell.

 

The reasons why that linked apartment is that cheap are mostly:

a) it's spread over two levels, which means a significant portion of the apartment will not be usable as you want it due to the staircase

B) the apartment is spread over upper floor and attic, meaning half the apartment (and not the rooms shown in the pics...) will have angled walls

c) it was built in 1945, meaning it was effectively built as "emergency housing" postwar and is considered in the lowest categories regarding Mietspiegel rental expectations

d) the heating is noted as gas, which means single heaters for each room

e) the Hausgeld (maintenance/repairs for the rest of the house, jointly used utilities like trash etc) is pretty high at 200 Euro (2.22€/m²).

 

From the text below the ad certain parts of the house were recently renovated (wiring and roof), which would result in a higher Hausgeld than normal. Owner probably decided that 200 Euro rate was too high for him and is bailing out.

 

The price is not unusual for a house with that building year (range of 800-1600 €/m² in West Germany for semi-renovated 1945 apartments). Due to the building year it can be expected that that house will need further upgrading in the future.

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Thanks for the posts guys!

 

It seems there is alot more factors to consider, something i did not know up until now!

 

I was just curious and comparing markets etc. But you all made sense and helped out with the reasons why they might be lower than others and so forth!

 

I think i just got abit excited seeing those type of prices then compare them to the market here in Australia - something what now looks like you can't really compare due to different factors.

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Totally agree. You have to get out of the Australian mentality that renting is wasting your money. Over here, it's highly possible that buying will be a waste of your money.

 

House prices here are pretty much stagnant (of course, it depends on whereabouts) and the market is not fluid like it is in Australia, and you could have a lot of trouble reselling your house without making a loss (and it could take a long time). Cost involved with buying a house are about 10%, and you'd have to hold onto it for a long time to recoup this (of course there are exceptions).

 

Renting is often the better deal. You would be crazy to come over to a country that is foreign to you and where you don't speak the language and immediately buy something.

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That, and the general populace's obsession with Australian fucking rules football.

 

The good news is it's really only people from Victoria that care that much about AFL.

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It's a bit that way with house prices in NZ where I come from, which makes it well-nigh impossible for young marrieds to think about their own house AND a family. Prices are through the bloody roof and over the last 2-3 years renting as a normal "lifestyle" has been starting to creep in.

 

Here in Germany property prices are quite high because of the higher population density (200 inhabitants / sq. km in Germany c.f. 15-20 in NZ). Add to that compulsory brick construction, compulsory double glazing, compulsory insulation & compulsory central heating etc. and you end up with not much for your money. Which explains why most people (70% - 80%) rent.

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I come from West Aus. People are just as obsessive about AFL there. Myself included. Played it for 15 years. Better than the poncy "fall over if the wind changes" rubbish over here. Apart from that, bloody good advice on the housing market here, OP.

carry on.

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Thanks for more info guys!

 

A little bit info bout myself reasons why i chose a random apartment/house in Braunschweig is because i was born there and all my family live around there too - so my only experience in Germany would be around the area and Wolfsburg.

 

In terms of language, i know German, mainly understanding it all, but pretty good speaking but have to stay there to really grasp it again. I moved to Australia with parents back in 1990 when i was 3.

 

I talked to my parents about moving to Germany etc but alot of their info is around 20 years old and thats all they can refer me too.

 

So renting in Germany would be a better option for most? Why would that be, the prices are much better per week/month rather than paying off a house?

 

My mum told me - this might be old but please correct me if anything has changed - is that when you rent in Germany, you dont get kicked out due to the fact its all owned by the bank/insurance companies etc - not privately owned like you see in Australia (expensive renting!). Also, with renovating she said you could renovate the apartment/house etc and pay the costs and when you decide to move out, the next person pays for the renovation fees? (please note that the info she provided is bout 20 years old) - would like to get some new info on that.

 

Reason why i am asking all these questions is at the moment i am engaged to my lovely girl and we are considering starting fresh, she moved from overseas so she dosnt have any family in Australia and all i have is my mother. We are just considering what options there might be, organize and plan whilst instead of going in blind and find ourselves in trouble.

 

PS. I am not an AFL fan and i live in Perth. Game never really interested me, but have been playing football (soccer) since i was 10 so :).

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Find a place to rent first. Then once you're committed to the region you can think about buying for the long term. Buying a property straight away and deciding a year later that this isn't the right area or isn't the right property will leave you seriously out of pocket.

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So renting in Germany would be a better option for most? Why would that be, the prices are much better per week/month rather than paying off a house?

Pretty much. Rents are fairly low (relative to the purchase price), closing costs on a purchase are fairly high (~10%) and house prices are pretty stable, so you're not gonna build much equity just by owning a house. Unless you have a very large down payment, you will have to keep a house for at least 10-15 years to make it worthwhile financially.

 

If you don't, someone who rents and puts the difference between the rent and the mortgage payment into a savings account will come out with more total equity.

 

When a landlord buys a house and rents it out, the mortgage interest he pays is considered a tax-deductible business expense. When you buy the same house to live in it, it's not a business, therefore you don't get to deduct mortgage interest.

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Thanks Small Town Boy.

 

I think for the first bit would stay at my Grandparents place till i find a job and rental place whilst go from there.

 

Also, could you kindly list a few real-estate websites i could browse and see what there is?

 

Thanks!

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