House prices in Germany

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Thanks for the website guys.

 

With the rent prices on the websites - do they go by monthly payment so whatever shows on the website is monthly or weekly?

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Some good points posted here. I am going to add some more information to perhaps give a bit more of the picture.

 

We shifted from Melbourne, Australia about 2 years ago to live the Cologne/Dusseldorf area. We are renting, but are seriously thinking about buying a house. The current house we are renting is a doppelhouse, 132m2 and costs 1270EUR per month. Then we have to add the utilities which brings it to about 1500EUR per month.

 

I do appreciate that we live in one of the more expensive part of Germany as it is so highly populated here, but doing the maths, we have paid out about 30K Euros over that two years. Imagine that going into the mortgage on something you own rather then the landlords'

 

The interest rate is at all time low in Germany, (in fact, most of Europe as well). We just talked to the bank and will be able to secure a mortgage in a few years time with a interest rate of about 2.75%, the max interest rate we secure is 3.75%.

 

An ideal house for us would be a house that is about 5-7 years old, but that is going to be extremely difficult to buy. Most Germans only ever buy a house once in their lifetime. Once it is in the family, it is typically passed on to another member of the family. One of the neighbours joked that to buy in our town, we have to wait for someone to die. A relatively new house has the major advantage of being a energy efficient house. The modern German house is build really, really well.

 

Sorry for the long answer, and Good Luck!

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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.

 

I am not sure I agree with this..

 

Renting is dead Money.. END of! ou are paying someone elses mortgage!

 

If one buys and leaves within 2 yrs, then its a tough call..

 

Buy.. leave 2 yr later... Then keep the place, but get someone to pay your mortgage for you.

 

I rented for about the first 12 months that I was here... maybe 18 months.. but then I bought..

 

Sold that apartment and bought a house..

 

Many of my neighbours cant get their head around it..

 

When I die, I leave my daughter a nice little nest egg... When the neighbours die.. then they leave just their savings...

 

Mortgage = rent

 

I die.. I leave Colateral in the house, plus saveing..

 

Renter.. Leaves just saving...

 

Buy buy buy...

 

Woof!

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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.

Traditionally, building equity or purchasing a new home every 3 to 5 years is not part of the German mindset. You buy a house only once in your lifetime, you stay there (job permitting) until you die or have to move to an assisted living facility, and your children inherit the property. Emphasis is on settling down, raising kids, knowing your neighbors - much like small town USA or suburbia, but without moving to a different place every few years.

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You buy a house only once in your lifetime, you stay there (job permitting) until you die or have to move to an assisted living facility,

 

Maybe where you come from..

 

I intend to buy at 1 or 2 more properties before I shuffle off to my grave!

 

Hopefull my daughter will Live in one.. and rent out the other two!

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I've been a homeowner and landlord in Germany for a very long time, managing my property from overseas. Was too much hassle and not worth it in the end. Finding good renters who actually pay their rent regularly without ruining the place can be quite challenging at times, and when you have finally found some, they move out after a year or two to buy their own place.

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We thought about buying a property in Germany, but decided that being a landlord from overseas is too much hassle. I'm with SP on this one... buy and let the renters pay the mortgage! That's what we're doing with our house in the 'hood. Anyone want to rent it? :P

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LOL, yes. All door jambs beefed up by a contractor with angle irons, and a lovely grape motif wrought iron security gate at the entrance. House is fully alarmed. Shotgun negotiable. Garden is to DIE for (I will pay water bill and maintain garden). Comes with a real live German expat next door. :D View of San Francisco bay.

 

Seriously, I'd like to perhaps get a European [or other] expat family in here. Where should I look?? The guy next door used Craigslist.

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I would contact the HR/relocation departments of some of the multinational corporations in the Bay Area. Few years ago they were desperately looking for accommodation for their new H1B employees. Don't know if that's still the case, though.

 

 

Shotgun negotiable. Garden is to DIE for.

Literally... :D

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Thanks, Expat, good idea. The guy next door is with a large German biotech company. I'll check with the biggies in Silicon Valley, etc.

 

Any Aussies want to do a property swap for a month or so? ;)

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Gorgo hit the nail on the head. This idea that renting is "dead money" or that you're "paying the landlord's mortgage" is nonsense. Even assuming a relatively low mortgage of €250,000 and an (in the long term) almost impossibly low 3% interest rate, you'll still end up paying the bank around €80,000 in interest over 20 years. At a more realistic rate of 5%, the figure is closer to a €130,000 donation to your bank. So much for "dead money". Buying is only automatically better than renting if you don't need a mortgage, and even then you need to be sure you've got the right property in the right location.

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Ok... you are still paying the majority of his mortgage... while he lives the life of riley in his Mummies house!

 

Renting is a waste of Money! You may as well find a deal in a local hotel where they clean the room for you too!

 

Or maybe you cant afford to buy a place... sour grapes etc!

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Renting is a waste of Money!

 

Yeah, and so is drinking. You die anyway.

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