House Rental Price in Germany or Buy a house in Germany (2020.05)

House rental price in Germany or buy ahouse in Germany (2020.05)
BTW, How much is it?

 

Hello. 

 

In this blog,  I am going to tell you about approximate monthly rents and house prices for May 2020 by major German regions (currently trading in the real estate market).

How much do I need to rent or buy a house in Germany?

Here are the areas that I have selected (if you're curious about the prices and ratings in other regions, please leave a comment and we'll check and let you know).

 

 

 

1. Rent Price [apartment only] (2020.05): not including maintenance fee such as water, eletricity

* As the price for rent would be very deviate with regard to the location, construction year etc, I made approximate price distribution only with houses which habve been built less than 10 years (1990 ~ 2010) and located a little bit away from the city center (I have excluded the house, which is more expensive than others).

	40 ~ 50 m2,  2 rooms (1 living room, 1 bed room)	70 ~ 75 m2,  3 rooms (1 living room, 2 bed rooms)	Remark
Harmburg	-	-	-
Bremen	320 ~ 450 euro	400 ~ 700 euro
Hannover	350 ~ 450 euro	520 ~ 700 euro
Berlin	560 ~ 1.000 euro	850 ~ 1.200 euro
Dortmund	260 ~ 410 euro	450 ~ 600 euro
Koeln	500 ~ 700 euro	820 ~ 1.200 euro
Frankfurt	700 ~ 900 euro	850 ~ 1.200 euro
Stuttgart	750 ~ 1.000 euro	850 ~ 1.300 euro
Muenchen	900 ~ 1.000 euro	950 ~ 1.400 euro
Leipzig	150 ~ 220 euro	340 ~ 430 euro
Dresden	250 ~ 320 euro	560 ~ 800 euro

 

2. Cost to buy a house [aparement, separate house] (2020.05): excluding the tax and commission

* As the price for buying a house would be very deviate with regard to the location, construction year etc, I made approximate price distribution only with houses which habve been built less than 10 years (1990 ~ 2010) and located a little bit away from the city center (I have excluded the house, which is more expensive than others).

	90 ~ 100 m2,  more than 3 rooms (1 living room, 2 bed rooms), apartment	120 ~ 130 m2,  more than 4 rooms (1 living room,  3 bed rooms),  seperate house	Remark
Harmburg	-	-	not applicable. Only few offers are available.
Bremen	180.000 ~ 320.000 euro	300.000 ~ 400.000 euro
Hannover	150.000 ~ 260.000 euro	280.000 ~ 380.000 euro
Berlin	300.000 ~ 920.000 euro	300.000 ~ 920.000 euro	Difficult to get an average value out of offers. Too much deviation in-between them.
Dortmund	260.000 ~ 320.000 euro	-
Koeln	350.000 ~ 570.000 euro	380.000 ~ 490.000 euro
Frankfurt	620.000 ~ 890.000 euro	670.000 ~ 900.000 euro
Stuttgart	480.000 ~ 600.000 euro	-
Muenchen	700.000 ~ 890.000 euro	1.100.000 ~ 1.500.000 euro
Leipzig	120.000 ~ 180.000 euro	200.000 ~ 360.000 euro
Dresden	320.000 ~ 430.000 euro	300.000 ~ 420.000 euro

 

Then, what would be the general way for Geman as well to buy a house? How much money they need at the beginning to buy the house ? Is it 200,000 euro ? 500,000 euro ?

Actually, they borrow most of money from the bank as similiar as other countries. And this is also possible for the expat in Germany.

As long as you have the valid resident permit, you could get the financing from the bank eventhough you are an expat. No bottle neck from my point of view.

 

For example, let's assume that the price for the house you are interested in is 500.000 euro to buy and your own capital right now is only 50.000 euro....

 

1) Total cost: 555.000 euro

- House to buy: 500.000 euro

- Tax, Notarization fee etc: about  6%, 30.000 euro (depending on the region).

- commission for agency : about 5%, 25.000 euro 
(if you made a contract direclty to the house owner, you could save this amount of money. I do highly recommend this).

 

2) Mortage (financing support from the bank)

- 50.000 euro: own capital

- KfW 100.000 euro, 0.85 % interest rate (2019.11)

: You could borrow up to 100.000 euro with only 0.85% interest rate from KfW and this will be coordinated from the bank where you want to borrow the rest of the money.

And you will pay back only the interest within 1 year and you gonna pay back the principal together with its interest rate after 1 year as defined in the contract.

- 405.000 euro from bank: fixed interest rate

: Current interest rate in Germany is about in-between 1% ~ 1.3 % but this would be adjusted (lower down) if you are able to pay back more at every month or you have high amount of own capital. More capital/redemption ratio, less interest rate.

If you get a loan from the line, you will have to pay back your interest after one month, and you can discuss this schedule with your bank in detail. It is common to postpone the repayment schedule (redemption of principal) by three to six months in order to reduce the burden, usually in Germany, where a house contract is made first (at this time the purchase of the house is completed) and after moving in (after repairing the house). 

In addition, a 10-year, 15- or 20-year term is usually a contract term, and the remaining amount after the contract term can be paid in a lump sum or an additional loan contract can be extended, but all repayments must be completed within the specific term agreed upon in the contract. (e.g. 35 years).

 

Please refer to the posting below for more information on how to find out the interest on your loan and how to know your current level.

 

Are you interested in the mortgage interest rate in Germany for buying your own house ?

If yes, you had better click below.

2020/07/25 - [독일 생활 정보] - As of July 2020, what is the mortgage interest rate in Germany to buy a house case by case and what is the best conditions for it?

As of July 2020, what is the mortgage interest rate in Germany to buy a house case by case and what is the best conditions for i

 

 

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Are you looking for a company to move to Germany? Here is a site where you can find jobs in Germany.

2020/05/23 - [독일 생활 정보] - Job site in Germany Top 5, Job finding in Germany

Job site in Germany Top 5, Job finding in Germany

Are you interested in the salary level in German?

Are you curious how much money is suitable to get monthly or yearlay compared to your working experience?

If yes, please check this out. It would be helpful for you.

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