Buying a house in Germany

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nice - but these houses in Poing (close to where I live, btw) are not actual houses for sale. They are model houses that you could have a company build for you - on your land, that you first have to find, buy, and potentially develop. 

 

For more realistic "inside views" (or decoration ideas) of houses that actually exist in Germany, you could look for ads on Immoscout24 that come with lots of pictures, or even a 360° walk-through. Like this one here, close to Poing https://www.immobilienscout24.de/expose/130353063

 

From what I can see this offer is very typical for the area, pricewise, stylewise - if I didn't have a house already, I'd be taking a look at that one.

 

 

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I thought the model houses (Fertighaeuser) would probably eventually be sold to be used as dwellings, maybe in a few years when they are not so new. Might be a bit cheaper then.

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We've been to look at the Fertighäuser in Poing several times over the last 30 years. Always the same houses with maybe a few added features. I don't think they ever sell them. It would cost much more to dismantle them and move them than ordering direct from the factory. IIRC, they will also help find/develop land for their houses at a premium cost as if land doesn't cost enough already. 

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Thirty years? But surely new houses now are different from new houses then, sooner or later the new houses are old.

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11 hours ago, Fietsrad said:

Thirty years? But surely new houses now are different from new houses then, sooner or later the new houses are old.

 

in my experience here the price of houses doesn't really depend much on their age. It's more the general condition - and the location, especially the location.

You have to keep your "old" house well maintained, sometimes renovate, but other than that the value simply goes up and up and up. 

 

Our house was built in 1963, has been updated several times since then, and saw a 12% raise in value this past year alone. 

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I own two houses and I am sad by seeing how happy house owners are with this housing inflation in the West.

I would like future generations to be able to afford housing without breaking their neck or crazy commutes that damage environment and family and social lives.

Wealth should come from smart hard honest work and ingenuity, not by misguided politics that transfers wealth from our children to us by limiting housing supply where they are needed / wanted.

 

 

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25 minutes ago, Gambatte said:

I own two houses and I am sad by seeing how happy house owners are with this housing inflation in the West.

I would like future generations to be able to afford housing without breaking their neck or crazy commutes that damage family and social lives.

Wealth should come from smart honest work and ingenuity, not by misguided politics that transfers wealth from our children to us.

 

Before I moved to Germany, my German friends and relatives pretty much relied on inheriting property from their parents, grandparents etc.  I’ve heard that this is far less likely these days when seniors require care homes. Their property most likely must be sold in order to cover the ever increasing costs of such care.  
 

During a mortgage review a few years ago, our advisor was most astonished that neither I, nor my husband expected any kind of property inheritance. He said that this was often a normal expectation when calculating future mortgage affordability. Not for us!

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1 hour ago, Gambatte said:

I own two houses and I am sad by seeing how happy house owners are with this housing inflation in the West.

 

Me too. 

 

It should not be a 'market' - where I live it still isn't so much, but no doubt things will change.

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well - I remember back when I first decided to move out of my dad's house and start fending for myself, it was really hard to find a place to rent that I could afford. After bending over backwards just to rent a 30m² one room "Wohnklo" (no basement storage, no balcony, no TG-Stellplatz) to share with my boyfriend of the day, the first thing I decided for my future was: buy my own place as soon as possible.

 

I started a  Bausparvertrag and saved every penny into that. Ten years later I was approved for a mortgage loan (at 8% p.a. interest rate back then) and bought a split-level condo in Neuperlach. New construction, 78m², balcony, small piece of green grass and a patio, Hobbyraum style basement, underground garage. The price was astronomical, considering the market and my personal budget back then. I spent 60% of my take-home pay just for the mortgage.  

 

Another ten years later I reached what I call "break even" on my condo. Some of the owners in the complex didn't live in their condos, they rented them out. The tenants where now paying considerably more for rent, than what I was paying for the mortgage. Also my salary was now higher, and I started thinking about how to minimize my income tax by buying real estate as an investment. My tax advisor gave me the parameters for the kind of rental apartment that I should go for: it should be located close enough to where I live (so that I can manage it personally); it should cost less than  2.5 times my annual salary (so that the tax savings could be maximized). I found the perfect place, got it financed, and made sure the numbers added up - between rental income and tax savings it cost me nothing to own that apartment. Tenant and Finanzamt are paying it off for me, so that I will have a nice little extra income when I retire. Or I could live in it, if I fancy.

 

I may, or may not, inherit real estate from my parents - they are still living in their own house. At the rate their health is deteriorating, I can see them having to sell the house to pay for their old age intensive care.... and even if the house doesn't get sold, there are my three siblings who'd want a piece of the cake too.

 

I wouldn't count on inheriting anything. My advice to people is always: you need to live somewhere, and you'll need to pay for it. In my opinion, it's better to pay a bank (your mortgage loan) than to pay a landlord (your rent). The bank will never come to claim Eigenbedarf - but your landlord might. Especially right now, with interest rates hovering around 1.2% for mortgages (and inflation over 4%) buying real estate is the best idea you can have. Work your way up, start with something that you may not even want to live in right now, and rent it out. 

 

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10 hours ago, karin_brenig said:

I first decided to move out of my dad's house and start fending for myself, it was really hard to find a place to rent that I could afford.

 

the better advice would be:

find a place to rent that I could afford.

decided to move out of my dad's house

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6 hours ago, catjones said:

 

the better advice would be:

find a place to rent that I could afford.

decided to move out of my dad's house

 

Or even better, find a place to buy that you can afford, then move out of your parents house.  

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10 hours ago, catjones said:

 

the better advice would be:

find a place to rent that I could afford.

decided to move out of my dad's house

 

....fine example of what happens when you quote only a small portion of somebody's text out of context....

 

anyways, my advice to people (based on my experience) is: buy the place you live in, do not rent - or at least get out of the rental situation asap.

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1 hour ago, fraufruit said:

I wish I had a nickel for every time you posted that.

 

you're right, I'll shut up, keep my wisdom to myself, and just quietly enjoy the results of proper planning (and a lot of good luck).


After all, I can't tell people how to live their lives. Even the ones that actively asked for my input often times simply nod, say "thank you" and then do whatever. Human nature. 

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29 minutes ago, karin_brenig said:

and just quietly enjoy the results of proper planning (and a lot of good luck).

Most of all don't forget to thank the politicians, your "proper planning" and good luck are direct results of misguided politics that has been driving housing inflation by restricting supply where people want it and need it.

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2 hours ago, karin_brenig said:

 

anyways, my advice to people (based on my experience) is: buy the place you live in, do not rent - or at least get out of the rental situation asap.

I would say that this advice this good though very much dependent on circumstances.
 

When, I lived in the UK, buying and selling property cost very little.  Not sure how this might have changed in the last 10 years. People often moved regularly just for a change or to go up the ‘property ladder’. Buying property here seems a good idea longer term as the cost of buying can be very high….Makler, Grundbuch etc. Around us, many houses were purchased in the 80’s. Now, the elderly owners face downsizing.  Buying doesn’t really allow much for future flexibility.  Low mortgage rates are offset against every increasing property prices.  
 

If we hadn’t bought our house when we did 9 years ago, I don’t think we could have afforded even half the size of house a year later.  Yes, good luck really is a bonus!
 

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10 minutes ago, emkay said:

Now, the elderly owners face downsizing.

 

That's the problem. Sell their old home at a big old profit and pay the same for something smaller. My FIL has been renting since he sold up.

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It also depends on the rental market in your area for example whether you can find affordable rental housing you are happy with and can stay there for a while.

 

Buying, your house or condo may go up in value and eventually you'll own it free and clear, however if it needs major work at some point that's on your dime too.

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Japanese friend of mine bought his house 40yr ago, in Japan.

He tells me his children, had the choice, would prefer NOT to inherit the house, because they expect they would face the same he did when he inherited the house of his parents some years ago.

 

He had to demolish it and sell the land. Demolition costed MORE than what he sold the land for.

So he didn't inherit property that went up in value. He inherited property whose value went below zero.

He also says knowing how much he spent for purchase decades ago, how long he's lived there and how much longer he expects to live, and the cost of rental, had he rented for this many decades the total cost would have been less than purchase. 

 

Karin, if you are proud and happy admiring the queue of people that come to you begging for advice, because of your renowned wisdom, all good with it.

 

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