Stay here (and build) or move away (and build/buy there)

Hello everyone,

I don’t even know where to start. There is still an old thread, but since links are devil’s work, you have to search for it yourselves if you are interested. In short, since 2018!!! we have known about two new development areas in our town, and the allocation is based on a scoring key. And lo and behold, currently we are ranked 52-55 (four others have the same score and would then be drawn by lot on allocation day) out of a maximum of 59. I don’t want to get annoyed at the municipality at this point because they let four years pass without reason, shrugged off two land value reference prices despite an exploding price level, etc. Then came Corona and now Irre-Ivan, no more KfW subsidies, exploding construction costs for prefab houses, rising interest rates, and generally rising prices. In short... it’s totally crazy who is building right now! but... who says it won’t be even worse in three years.

In addition, we simply want to get bigger in terms of space (second child), and rental apartments in the Munich suburbs are extremely expensive in that regard, and for our retirement we just want some asset value as wealth.

Basically, about 30k would come as a gift from the families and about another 60k as an interest-free loan from various wealthy Swiss relatives and 10k from ourselves as equity. We already have a financier who calculated everything, and financing would also be possible with a rate of €1770. Everything would then be tight, my gym membership cancelled, going out for spontaneous meals cancelled, doing spontaneous things... cancelled, and ideally I’d prepare lunch at home in advance.

So... soon (unless someone objects with a lawsuit again) the plots will be allocated. And by then the decision should be made whether we want to stay here in the familiar surroundings (with all their advantages, in-laws are here) and possibly not let the estimated 750K - 850K (350k for the plot, rest for the house) become more than we can handle. (Net income at 4400) (2700 fixed costs and living expenses). Alternatively, we have considered moving away from Bavaria. The Upper Franconian provinces near the Czech border are significantly cheaper with purchase prices (existing properties) from 200k to 500k, and we would have a lot more for housing and living!

We have now also crossed out the plots that wouldn’t be an option for us anyway. Oh yes.. half will be sold and the others allocated as hereditary building rights with all their possibilities but also many problems!

It is simply a painfully nagging question whether it would be better to stay here and hope for an increase (plus live near the parents) or to go for hereditary building rights and slowly wither away or to move somewhere else, where according to Immo24 it is currently much cheaper. Also… my wife always assumes the current situation, and I assume that in 1-2 years I will finally have a new, better-paid job.

Sure, we don’t want to leave here, but the price level is just so insane that we ask ourselves if it is still worth it? It makes everything such a headache, with the feeling of having to choose between bad and really bad anyway.

Move away and be happy.

1. Your budget is not enough to build anyway. 400k is enough for 100sqm + additional costs in Bavaria
2. The rate of the insufficient budget is too high for your
3. If you have to give up everything for the house, it doesn't help anyone

Hello,

just very briefly right now:
With a budget of 750k - 350k for the land, you are assuming a house price of 400k. I consider that absolutely impossible in Munich.
850k is already more realistic.
But then you have an astonishing 810k debt with a net income of 4400€.
One can only think that’s crazy.
Even with great salary increases, that remains madness for a very long time.

And the second point: Since 2018 you have known about the construction area (I believe I remember correctly the northern Munich area?) and yet only 10k equity is available.
That already shows there is barely any leeway.
On top of that, there is your "older" age.

So overall I do not see you owning property in the Munich area. Even the hereditary building land will be too expensive for you.
Why not an older condominium near your families?

These are a few numbers too big for you. The income fits absolutely 0.0 with the budget.

And the second point: Since 2018 you have known about the construction area (I believe I remember correctly that it is the northern Munich area?) and yet there is only 10k equity. That already shows that there is hardly any leeway. On top of that comes your "higher" age.

To be honest, that point surprised me quite a bit, that only 10k equity has been saved up. I would also like to point out that the 60k interest-free loan must also be repaid. That is presumably not taken into account in the already tight financing, right?

Why actually the possible higher income in 1-2 years? Are you currently undergoing further training? Or is it just wishful thinking?

The whole thing is a pipe dream.
Only saved 10k. 4400 household net income.
Forget it.