The numbers are according to IGM Bayern, so actually as a tariff employee you can't make more in Germany. For me, that somehow ties together. There are simply significantly more people who bring home 100k gross per person. Multiply that by 2 or 1.75 (because of children), and that adds up to a decent net income. In that case, a 3-4k installment is no problem and with that, you can practically do something decent in almost any German major city (with a few exceptions).
The calculation is flawed because you assume both work in an IGM company. And you additionally assume that one automatically has the highest EG with 40h. IGM mostly means 35h. The highest EG is not so easily achieved anymore nowadays. Those times are over. Often, not both work in IGM.
Furthermore: The absolute prices of tariff wages have not risen proportionally to real estate prices. With 300€ more gross per month, you have 1000-1500€ more financing costs per month. There's a considerable gap there. That's why I say: this tariff discussion and employer discussion only make sense if incomes depended on the city and not the federal state.
I can give you some experience based on many building friends/family members. Due to proximity to Munich, land prices of 800 to 1000€ are currently common here.
1) For us it goes like this (total costs probably around 730k):
- small plot of land of 330sqm
It would be nicer otherwise, but expensive enough...
- From 5k net per month, annually 22k (+ hopefully 14k special repayment) goes into the house, so a very high priority compared to other consumption
- Already saved 200k
(also parental support, as rent-free living)
- A lot of self-labor
- Civil servant status, so no short-time work and no unemployment
2) For friends it goes like this (costs 1 million):
- Said jobs at BMW/Siemens
- 300k equity saved through frugality and good income
- 200k gift (100k each from the parents)
- 500k loan like we also have at a slightly better income
- They can bridge short-time allowance and unemployment, as 500k is not the limit for that income
And this is roughly the range my other friends are in who just recently bought/built, though I only know of this couple exactly.
Civil servant status is indeed an additional luxury that naturally secures the financing. But may I ask: do you find the compromises you had to make with this frugality justified for a 330sqm plot? Do you even have garden space or do you mean 330sqm garden and not plot including built-up area?
Your friends' calculation looks plausible. But now it depends on how long it takes to save that. Because it is true that a crucial factor is how much equity (whether earned or gifted) you have. 500k€ equity significantly lowers the interest rates and thus the overall costs!
But it is very nice to see that many do manage it.
I admit that I still have the attitude here: before I spend an absolute fortune on a small house + plot (~4-500sqm total plot) and pinch pennies everywhere, I'd rather stay a tenant and spare myself the risk of unemployment, short-time work, illness and preserve vacation with the family, shorter working hours when the kids are here etc.
But of course my attitude may still change.
May I ask what draws you to the cities? I live north of Hanover and commute about 45 minutes daily. That's on the edge but still manageable. As a state civil servant, for example, one has the option to move away from Munich. At least mid-term.
My time is too precious to me. Currently, due to a business trip, I commute a total of 90 minutes daily. I work 9-11 hours a day. Plus 45 minutes of mandated break time. So I am at least 12 hours a day out of the house for work. If I can reduce the commuting time to 30 minutes a day and be more centrally located to my daily things like shopping, culture, and sports, that personally means a big gain in quality of life for me.
Add to that, I honestly say, I also don't want my children to have to commute to school later. They should be able to walk or bike to school up to the Abitur. Quality of life for the children because of more free time.
That is all a matter of personal taste. Hence also the high willingness to rent. But it remains a pity that such normal wishes exclude a house due to such land prices.