How long do singles and couples have to save for real estate transfer tax in order to realize their dream of owning their own home? This question was investigated by the information service of the Institut der deutschen Wirtschaft (iwd). The result is that couples who want to buy a single-family home have to set aside 5.5 months' income for land transfer tax. For singles who want to buy a condominium, the figure is 4.6 months' income.
If a savings rate of around 11 percent of net income is included, this means, according to iwd, that real estate buyers need to save for property tax for an average of four years in order to purchase a single-family home or condominium. However, this duration is subject to extreme fluctuations - depending on the city.
In Berlin, both couples who want to buy their own home and singles who want to buy a condominium have to save the longest. They alone need more than ten and more than nine years, respectively, to save for the real estate transfer tax. As reasons for it the iwd calls the middle incomes, the high demand for real estates and the strongly risen prices for these. In contrast, couples in Wunsiedel im Fichtelgebirge (1.64 years) and singles in Görlitz (1.30 years) get off cheaply.
Source and further information: iwd.de
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