Wednesday, December 4, 2019

House Hunting

It's been 10 years since we moved here in Stuttgart. 10 years of paying rent, which could have been spent to pay off mortgage for our own home. But it is not easy to find your own abode in this part of Germany because the prices for houses or apartment have sky-rocketed in the last 3 or 4 years. If you want to settle in a place very accessible by public transport, where schools and stores for daily needs are just within walking distance, you would have to pay a hefty price for it. Newly built homes are also way too expensive - you would have to pay more than half a million euros to get one. 

And if you want to get a loan from the bank, you would have to first have a permanent residency in order to get a long-term loan approved. In our case, it should be possible. 

The good thing about getting a housing loan at this time: the interest rate is relatively low. Depending on your capital and the selling price, you could get an annual interest between 1.01 - 1.35% per annum. This is indeed a very good time, and you can arrange for a fixed interest rate for 10-15 years. 

So where I am trying to drive at with this post? Well, it is a good time to buy your own house if you are financially sound to get a loan from the bank. But with so many people looking to buy their own home and with a very limited number of properties for sale, the competition is very high. You would need not just capital, you would need a lot of patience and a little bit of aggressiveness and a lot of luck to be chosen as the buyer.

As for us, we are still looking... hopefully the search will one be over one day and we will finally be able to move into our own home sweet home. 

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