Munich Observation

[Jonathanw]

Hey Everyone,
I just wanted to let you know something I heard from a good friend in Munich which surprised me and thought I should share with you all as it highlights how strong the rental market is for buy to let investors.

He said he is looking for a new appartment around 80m2 with 2 bedrooms, for his family. He is willing to pay 1300 euros a month, and when he visited an appartment last week around 100 people had made appointments to see the place, so the owners could choose the best tennants at their descretion. On top of that he needs to pay the agent 2 months rent as the fee, plus 3 months rent as deposit so when moves in including the first months rent he needs to pay 7800 euros!!!!

It seems crazy how the rental market is there at the moment.
I was just wondering though does anyone think that the slow market in America and the UK, will affect the German market and signal a drop in prices?
Just trying to think about the best time to invest there.

If anyone has good contacts or knowledge of the munich area especially foreclosures or "zwangverstegerung" I am always keen to know more!!

Thanks Jon

 

[Jonathanw]

I forgot to say something aswell...
Ontop of waiting amoungst 100 other people, paying out fees, high rent etc etc.... when you pay your 7800 euros to move in you also have to build your own kitchen. Even by Ikea prices your looking at 12,000 before you can live in the place.

People are very willing to rent in Munich, so any investors, i would say its a good sign.

Thanks and any feedback on credit crisis affecting Munich would be greatly appreciated?
Jon