Real estate transfer tax: Where the hurdles to buying a house are lowest

Equity, property transfer tax, notary costs: We show in which areas you have to save the least to get a real estate loan.

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Buying real estate in Germany: Long savings periods and high additional costs slow down buyers. According to an analysis by the Kiel Institute for the World Economy, interested parties have to save between four and almost 28 years before they can fulfill their dream of owning their own home. The real estate transfer tax and notary costs in particular extend the savings period significantly, depending on the region. The regional differences in additional acquisition costs are enormous and have a significant influence on the overall costs of purchasing real estate. A reform of the real estate transfer tax is therefore being discussed as a possible step to relieve the burden on property buyers in order to make the desire to have their own four walls a reality for more people.

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If you want to buy a property, you have to save between four and almost 28 years. That’s how long it takes most people in this country to earn what they need Equity capital to raise: a small part of the purchase price, the money for the property transfer tax and the notary. You should already have this much in your account before you even ask the bank for a loan for the rest.

It is obvious that rising prices for houses and apartments extend the average saving period. However, what is underestimated is the extent to which the other additional costs delay the acquisition of property. A new analysis by the Kiel Institute for the World Economy now shows: Depending on the district, you have to save between six months and almost three years for the property transfer tax alone. It takes another two to seven months until you have enough money to pay the legally stipulated notary fees.