Number of the month for June: 4 years

For many, owning their own home remains a lifelong goal. To obtain a loan from a bank, a down payment is usually required. This should at least cover the closing costs. A significant portion is needed for property transfer tax. Couples aspiring to buy property have to save for an average of four years just to pay this tax, according to a study by the German Economic Institute (IW Cologne).

For banks, the purchase price is usually not the main obstacle to granting a loan. Rather, it's the lack of equity, the required amount of which has risen sharply in recent years. This is due to increased property prices and higher real estate transfer taxes in some German states.

To afford the real estate transfer tax, the study calculated that, on average, one would need to save for four years. In popular cities with desirable residential areas, such as Wiesbaden, Düsseldorf, Frankfurt am Main, and Potsdam, this period extends to eight to ten years, and in Berlin to almost eleven years. The study assumes that a couple with an average monthly income can save approximately 10 percent of this amount.

However, the ancillary costs of buying a property are not covered solely by the real estate transfer tax. Additional expenses include notary fees, land registry fees, and potentially a real estate agent's commission. These costs can amount to another five to six percent of the purchase price. Experts are calling for a reduction in the real estate transfer tax for first-time homebuyers. This would make homeownership more accessible, especially for young households.

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