Financing Your Property
If you require a Mortgage there will probably be an additional 1% arrangement fee. Mortgages are readily available through most German banks and typically are offered at 60-80% of the purchase price. As in the UK you will be required to demonstrate that you can make the Mortgage payments! You may, of course, find it more convenient to arrange finance in your home country (subject to status).
Why Invest In Germany?
• Unbelievably attractive purchase prices
• Capital growth potential
• Higher investment returns than the UK
• Euro mortgage rates are lower than the UK
• Stable, long term residential tenants
• Strong and improving economy
• Regulated legal system and EEC protection
Back after a sixty years lull as the capital of a rejuvenated and reunified Germany and back as one of Europe’s if not the world’s greatest cities.
Berlin was the centre of critical historic events and became a sad curiosity after the Second World War, with a wall dividing the town in two halves and visitors mainly coming to see the attraction of a portioned Germany.
Today Berlin is an international metropolis equal to New York, Paris or London. Tourism is on the rise and guests from around the world are being drawn to this glamorous city to savour the intoxicating mixture of the old and new.
Fashionable boutiques along the world famous Kurfürstendamm (Ku-Damm) in the Charlottenburg district, with the Kreuzberg and Prenzlauer Berg areas are amongst the hotbeds of creativity, likened to New York’s Soho or Paris’ Latin Quarter.
Berlin is addictive, open 24 hours, offering residents and visitors alike an almost inexhaustible variety of possible activities.
Lets not forget the café’s, restaurants and of course the nightlife. The area around Hackescher Markt is very popular with its local and international speciality restaurants and cafes.
The city’s nightlife tempts people young and old to the countless bars, discos and clubs that stay open all night, and with exhibitions, open-air festivals and international sports events (who could forget last years fabulous football world cup).
Getting There
With a city that does not sleep transportation is important. The three major airports (Tegel, Schönefeld and Tempelhof) are best served by the excellent underground, bus and train systems that operate 24 hours a day.
Capital Growth
With only 14% of Berliners owning Property historically there has never been a strong domestic market for purchase of Property. This probably reflects the unique status of the previously divided city and its island-like position in a communist sea. Of course now this has changed......
Overall 40% of Germans own Property and therefore the opportunity to invest in Berlin becomes more obvious. The market in Berlin is not wholly influenced by the influx of comparatively wealthy Brits throwing their equity at cheap and cheerful holiday apartments - Bulgaria, Spain and Cyprus come to mind. What we have here is a long-standing market correction fuelled by a surging German economy, falling unemployment and a desire to invest.
Rental Income
The apartments are tenanted producing a healthy yield of 5.7%.
