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JMBroad
New Member
I'm hearing the same thing too, the situation isn't getting worse, it's stable.
I was replying more to GG's post asking "when is the loosening of mortgages going to happen in Germany?" - In my view don't hold your breath.
I was replying more to GG's post asking "when is the loosening of mortgages going to happen in Germany?" - In my view don't hold your breath.
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sheymoose
New Member
Mortgages are only restricted on apartments. It is possible to get very high mortgages on blocks - my last client managed 92% finance on an Oranienburg portfolio - but I know this is exceptional for non German investors - but 75% is relatively easy if the cold rent yield is high. You will get higher mortgages on both products if you are German or if you have a Gmbh which has accounts for 2 years - all our clients buy using a Gmbh (or a Gmbh & co KG depending on their investment strategy).
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Rentoroni
New Member
Why not? 
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Nest Egg
New Member
Sheymoose, you're right. We just did a deal for a client where they purchased a 1.6mil Euro portfolio for just under 1mill Euro and they were able to finance up to 92% of the purchase price.
As we're working with a German investment partner they understand what we need to deliver to our UK based leverage hungry clients...
The other point to mention are the macro indicators for Germany compared to the rest of Europe. It's undoubtedly going to become the powerhouse of Europe again and will be at the forefront of the EU economies and no doubt driving demand for property with its upcoming properity.
As we're working with a German investment partner they understand what we need to deliver to our UK based leverage hungry clients...
The other point to mention are the macro indicators for Germany compared to the rest of Europe. It's undoubtedly going to become the powerhouse of Europe again and will be at the forefront of the EU economies and no doubt driving demand for property with its upcoming properity.
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sheymoose
New Member
Deutsche Bank were recently offering a more attractive mortgage (for apartment buyers) but in the last month they have made it even more restrictive so that it is not attractive at all. The sub prime issue has definitely contributed to this as has rising interest rates. But the product was specifically for the non German market and the bank has realised that a lot of property marketed to the non German market is hugely over priced - some companies include huge commission in the price. So this increases their risk. I speak from experience. Anyone can sell German property and often the same property is sold by several different companies. We have found several of our own properties being marketed by other well known companies at much higher prices. Block mortgages have become more restrictive too. Again for the above reasons but also because German banks realise that there are an increasing number of block owners who are not German and are in most cases "feeling their way" once they own blocks - which increases bank risk again.
Seamus
Seamus
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OwnerInvest
New Member
Why invest in Germany?
The Hotel industry in Frankfurt has been extremely successful for a number of years already and average annual hotel occupancy has been running at above 80%. This really is great news for investors in hotel rooms in this city. You can benefit from the success of the hotel industry in Frankfurt from just £65k.
Nest Hotels
The look and feel of a Nest hotel is centered around beautifully constructed, state of the art living spaces that are modern, relaxing and contemporary. Rooms come equipped with facilities designed to make the guest feel at home including Plasma TV, Wi-Fi internet access, power showers and more. The hotel is currently undergoing a complete refit and upgrade from 3 star to 4 star.
Why Frankfurt?
Ideally located in the heart of Europe, the city of Frankfurt is more than 2000 years old and hosts the continent's largest airport and European road and rail junction. The City of Frankfurt is an economic and financial metropolis with 3,000 branches of foreign companies and 600 banks, around 230 of which are foreign. There are also around 170 hotels offering a total of almost 24,000 beds.
Each year at Christmas, nearly three million people make their way to the center of the old city to a fair whose history likely reaches back to the 14th century. This year, the Frankfurt fair offers an extravagant program of music, Christmas readings, and a visit from St. Nikolaus.
With light decorations that surpass many others (ecept possibly Madeira!),the fair has a Christmas “Wunderland” feel that makes it one of the most festive in Germany.
Frankfurt is also a showcase for some of the biggest Expo events in the world. Mediatech Expo 2008 - The largest optical media trade event in the world and IMEX 2008 - The Worldwide Exhibition for incentive Travel, Meetings and Events are just 2 of the key events that attract people to Frankfurt every year and help to explain why there is such huge demand for hotels.
The Hotel industry in Frankfurt has been extremely successful for a number of years already and average annual hotel occupancy has been running at above 80%. This really is great news for investors in hotel rooms in this city. You can benefit from the success of the hotel industry in Frankfurt from just £65k.
Nest Hotels
The look and feel of a Nest hotel is centered around beautifully constructed, state of the art living spaces that are modern, relaxing and contemporary. Rooms come equipped with facilities designed to make the guest feel at home including Plasma TV, Wi-Fi internet access, power showers and more. The hotel is currently undergoing a complete refit and upgrade from 3 star to 4 star.
Why Frankfurt?
Ideally located in the heart of Europe, the city of Frankfurt is more than 2000 years old and hosts the continent's largest airport and European road and rail junction. The City of Frankfurt is an economic and financial metropolis with 3,000 branches of foreign companies and 600 banks, around 230 of which are foreign. There are also around 170 hotels offering a total of almost 24,000 beds.
Each year at Christmas, nearly three million people make their way to the center of the old city to a fair whose history likely reaches back to the 14th century. This year, the Frankfurt fair offers an extravagant program of music, Christmas readings, and a visit from St. Nikolaus.
With light decorations that surpass many others (ecept possibly Madeira!),the fair has a Christmas “Wunderland” feel that makes it one of the most festive in Germany.
Frankfurt is also a showcase for some of the biggest Expo events in the world. Mediatech Expo 2008 - The largest optical media trade event in the world and IMEX 2008 - The Worldwide Exhibition for incentive Travel, Meetings and Events are just 2 of the key events that attract people to Frankfurt every year and help to explain why there is such huge demand for hotels.
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neustria
New Member
Recent news out of Germany suggests that the downturn's effect is now being felt on these shores. Whether the country's mid-term economic woes will translate into dropping real estate prices is anybody's guess at this point, but it would be premature and unwise to discount the possibility completely. The German consumer is now under pressure with rising prices, banks are more wary and rates remain high, and many foreign investors are now taking a step back to watch how the current situation develops.
Those already invested probably need not fret too much, but for the others, a wait and see attitude even here might be well advised.
Even the “Wunderland” Christmas light decorations in Frankfurt (see above) should not blind you to the fact that these are troubled times just about everywhere now.
Those already invested probably need not fret too much, but for the others, a wait and see attitude even here might be well advised.
Even the “Wunderland” Christmas light decorations in Frankfurt (see above) should not blind you to the fact that these are troubled times just about everywhere now.
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OwnerInvest
New Member
Your correspondent may be right concerning an economic downturn in germany and it’s effect upon real estate prices. Which is exactly why people should be looking at alternatives and the best of these is a hotel buy-to-let.
Investors are not pinning their hopes on capital growth and hoping to cover any costs with rental income, they are investing in a business and in an income generating investment.
There will be capital appreciation, after all, it is still bricks and mortar, but it’s the efficiency of the management company and the high demand for commercial hotel rooms in Frankfurt that make this an excellent opportunity.
Added to this, with Nest, the investor is in a no lose situation, if occupancy levels do suffer, then it will simply take longer to repay the outstanding balance, they are not expected to support any shortfall with their own cash, a problem faced by many traditional investors who cannot meet their everyday costs.
Investors are not pinning their hopes on capital growth and hoping to cover any costs with rental income, they are investing in a business and in an income generating investment.
There will be capital appreciation, after all, it is still bricks and mortar, but it’s the efficiency of the management company and the high demand for commercial hotel rooms in Frankfurt that make this an excellent opportunity.
Added to this, with Nest, the investor is in a no lose situation, if occupancy levels do suffer, then it will simply take longer to repay the outstanding balance, they are not expected to support any shortfall with their own cash, a problem faced by many traditional investors who cannot meet their everyday costs.
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okisen
New Member
hi, can anyone point me to some good recent articles on the german property market, how is it performing in 2008, especially in the larger cities?
thanks, kas
thanks, kas
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ict28
New Member
If you need nice property and villa we can provide
We are a company in The Netherlands and provide properties and Villa for sale and rental in Germany and The Netherlands.
If there is any interest I can be reached at : [email protected]
Peter.
We are a company in The Netherlands and provide properties and Villa for sale and rental in Germany and The Netherlands.
If there is any interest I can be reached at : [email protected]
Peter.
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Prop-erty
New Member
Thank you. That is very useful to know.
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G&B Berlin
New Member
There still plenty of reason, why to buy in Germany. The last 12 month has made even more worth while. Nearly every where the prices droped up to 70 % like Dubai. And what if you need to sell this now ? German properties have not lost great deal of value!
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Journals009
New Member
Property In Germany
Some Doubts I have regarding buying properties in Germany:
* How much should a person need to spend to buy a House
or property in Germany.
Some Doubts I have regarding buying properties in Germany:
* How much should a person need to spend to buy a House
or property in Germany.
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Darius
New Member
I can say my personal experience. I bought flat in Dresden 2 years ago (before crisis) for € 40.500 + 10-15% additional expences. Very nice place. It gives about 3-4% incomes netto. When crisis started I checked possibility to sell. It was big surprice that agency proposed me less price instead of quite high prices of same objects shown on the web. Or I need to wait long untill somebody will pay same price.
Here are answers: low liquidity, low profit, big stability
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buyberlin
New Member
Due to low prices and good yields, up to 13.21% and the stability of a regulated market, German property investment in 2010 looks to be a safe and popular move.
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teledeal12
New Member
yeah, i think The tax system is also high otherwise it wouldn't be a developed country
BerlinInvestment
New Member
Please tell me why someone should buy this?
Please tell me why someone should buy a below 20k property overseas.
Just one little problem and your advisor or lawyer fees will bust your calculation.
If you read this forum you see that there can quite a few problems occur, especially if you are dealing outside your language skills and probably have no knowledge of the customs and laws of the country you invested in.
My advice, and this not because I sell this, because I have the experience buying: buying a small block is a much better deal than a flat, were condo-members (especailly the selfuseres) destroy your yield with bad decisions in the community meeting AND/OR crazy non-english speaking property manager don't care about the minority of only-english speaking owners.
If you own a block, you are the boss, you make decisions based on your budget and strategy AND you can choose an english speaking property manager and he knows too, you are the boss.
I know, for most investors a block (starting at 300k) is way to much money, but re-thinking an investment decision on buying a flat (especially really cheap ones) might be my main intention of this post.
Just my 2cents,
Alexander Korte
Sorry buyberlin, I am a broker here in Berlin. But what I don't understand why folks like you offer such things and why people actually asking for it?
Please tell me why someone should buy a below 20k property overseas.
Just one little problem and your advisor or lawyer fees will bust your calculation.
If you read this forum you see that there can quite a few problems occur, especially if you are dealing outside your language skills and probably have no knowledge of the customs and laws of the country you invested in.
My advice, and this not because I sell this, because I have the experience buying: buying a small block is a much better deal than a flat, were condo-members (especailly the selfuseres) destroy your yield with bad decisions in the community meeting AND/OR crazy non-english speaking property manager don't care about the minority of only-english speaking owners.
If you own a block, you are the boss, you make decisions based on your budget and strategy AND you can choose an english speaking property manager and he knows too, you are the boss.
I know, for most investors a block (starting at 300k) is way to much money, but re-thinking an investment decision on buying a flat (especially really cheap ones) might be my main intention of this post.
Just my 2cents,
Alexander Korte
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cb-jaco
New Member
German economy is recovering since mid 2006 now at a very good rate. First time since over a decade the unemployment rate has come down under 4 Million and is no longer above 10%. But still that means that as investor one has to strictly concentrate on cities and areas which are most wanted for renting.
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PaulTester
New Member
I agree Alexander. Going through all of the administrative process is quite a burden, and when one considers the additional costs, it really does start to add up and, as you put it, 'bust your calculation'.
I should declare an interest here - I work as a Makler in Leipzig where I specialise in selling multi-family houses, too, and the majority of them are indeed >300k, but in terms of control, (obviously important in the field of absent landlords, pretty important...) it really is the best thing.
I think smaller apartments can work but the strength of conviction over the prospective degree of capital appreciation needs to be pretty robust!
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germanagent
New Member
Certainly one would buy property in Germany because its market is very stable and firm, but only if you know the right locations where to buy! Apart from the ever lasting number one city Munich these are Frankfurt, Stuttgart, Dusseldorf, Hamburg, Dresden, and Berlin in a way - its a market one really must have an expert for. Regards, Peter, <snip>
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