No building land due to new EU native model?

Hello everyone,

we are a two-person family who have been looking for a building plot east of Munich (50-70km) near the upcoming A94 for years.
We have already applied several times for a building plot in the local resident model in municipalities near us, but each time we fail due to too few points or too much equity or income. We have too few points because we don’t have children. Since we have been searching for a long time, we have already saved about €130,000 and can save about €15,000 more each year. Here in our area, however, you are not allowed to have more than the plot would cost (mostly about €150-200/sqm, so about €120,000). Also, you are not allowed to earn more than the municipal average, which for a couple is about €80,000 gross. But we earn almost twice as much gross, so between us we have about €6,500 net per month (both earn approximately the same).

So the only option left for us is to buy a building plot from a private person. But prices here are extremely high compared to the municipal plots. We are talking about €500-700/sqm, which quickly means €300,000 for the plot. Then I calculate building costs of about €400-500k (160 sqm, basement, double garage, simple building body). That means about €700-800k for everything.

However, we don’t dare to finance this amount because then we would easily pay over €2,000 per month for the next 30 years. If one of us drops out for a few years due to having children, then there is too little left for living. Or is it normal nowadays to finance so much for a house? My pain threshold is currently €1,800/month for financing.

What do you think about this?
What other possibilities do we have to get affordable building plots?
Or should we forget about building and only look for used houses?

Thank you very much and best regards, Hannes

Well, what can one really recommend to you about that? You earn significantly above average. That means you fall out of the measures designed to help people acquire property even if they don’t earn above average. So you are operating within the system of supply and demand.

I would advise you to set a higher savings rate than €15K p.a. with a net income of €6,500. Doubling it should be possible. Then it will work out in 2-3 years. A targeted rate of €1,800 with a net income of €6,500 is rather comfortable anyway. Check your expenses.

Affordable building land is available where demand is low. And if you have already been searching and saving for several years, and know the prices in the desired area... with such a salary, I would also put aside more.

The reason why we don't have more equity yet is that we spent a very long time in training for this salary and also paid a lot of money for it. In my circle of acquaintances, no one had saved more than 30k€ for their house financing. We already thought that we had saved a lot.

And yes, 1800€ would be very comfortable if two full salaries are coming in. However, if one is absent for a longer time due to a newborn and then only half remains, the situation looks quite different.

OK, so we will probably save for a few more years so that we can afford a house in our area. Or we are lucky and find a nice used one.

I just find it odd that families with little money and low salaries are practically lured into building, even though the risk here is already very high when interest rates rise...

And people who could afford it without risk have to fight on the open market for the few plots of land together with all the new rich and the heirs.

You are practically punished because you saved and because you have a good job after having gone to school and university for a very long time...

Maybe someone can still give me tips on where to look for building land or who to talk to.

we are a two-person family

No, you’re not. See the definition of family: "Parents and their child(ren)"

What other options do we have to get inexpensive building land?

We have too few points because we don’t have children.

Hm... does anyone else notice something there?

A radical idea: maybe one could also move somewhere where "normal" people (and sorry, but with that salary I don’t really count you among them anymore) can afford a house. What’s happening in the Munich area these days is just sick.

Having children. At least 1, preferably 2. That reduces your income (at least temporarily) and probably increases your points.

Otherwise, I agree with the previous speakers. These points systems are relatively balanced and fair. We notice that here with the daycare places.