How long do singles and couples have to save up for property transfer tax in order to realize their dream of owning their own home? This question was investigated by the information service of the German Economic Institute (iwd). The result is that couples who want to buy a detached house have to set aside 5.5 months' income for property transfer tax. For singles who want to buy a condominium, the figure is 4.6 months' income.
If a savings rate of around 11% of net income is taken into account, this means, according to iwd, that property buyers need to save for property tax for an average of four years to purchase a detached house 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 need more than ten and nine years respectively to save up for property transfer tax. The iwd cites middle incomes, the high demand for real estate and the sharp rise in property prices as the reasons for this. Couples in Wunsiedel im Fichtelgebirge (1.64 years) and singles in Görlitz (1.30 years), on the other hand, save the least.
Source and further information: iwd.de
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