Place In The Sun Magazine

[eddie 55]

The New addition of Place In the Sun Magazine...has voted Germany (Berlin)
from No 29 spot to the new No 19 in their top twenty to buy...
has gone up ten places from last year....that got to be good news for all investers....eddie55

 

[DSR Media]

Yes it is good news. Germany, well Berlin is at the start of a new growth cycle, and it is currently one of the safest places to make a long-term investment.

There is a shortage of housing and the demand for good rental accomodation ouweighs the supply, so you can pick up strong rates from residential lets without too much trouble, or buy a tenanted apartment.

 

[rayk150]

I have apartment in Berlin, trouble is the Germans are buying in Eastern europe and we are buying in Germany, is this saying something??

 

[DSR Media]

Say What?

Rayk150 I think you are oversimplifying things considerably. No more German's are buying in Eastern Europe than any other nationality, in fact considerably less than some. Most, if not all of the German's buying in Eastern Europe, and elsewhere in the world fall into two category's, the very few people in Germany able to afford to buy their own home in Germany, and buying a second, or holiday home, and those unable to afford a home in Germany and investing elsewhere in the hopes of making a quick profit and using it to get onto the German property ladder.

Everybody knows you aren't going to make a big profit quickly in Berlin, but rental rates are growing accross the board and have been for a year now, which is almost unprecedented. As rental rates continue to grow, the near certainty of maintaining a rental income for whole years at a time translates into yields as impressive as some of the world's hottest emerging markets, but with the security of being in an established European country, with a proven track-record of economic stability and sustained/sustainable growth.

 

[rayk150]

Maybe, but the germany investor in most cases is not buying in their own country, I belive the Irish/Britsh are buying and who to sell on to in 5-10 years, another german, I don't think so, unless the country improves alot, like I say the german with money is investing some where else, be it eastern europe or other locations, Yes I have a few properties in Germany, but from what I see selling on the properties will be hard as many non germans have invested in german cities, I guess time will tell.

 

[DSR Media]

Rayk150:

Like I said, most of the Germans making property investments outside their country are doing so to increase their buying power to obtain a property back home. Those who have and are buying recently and now (like yourself) should hit it perfect to sell to those people when they return with their profits in 4-5 years time to get onto the property ladder.

Also Berlin rental rates have been rising across the board for the past year, and if the economic growth in Germany continues to be as strong as it has, it is almost certain the government will relax the laws governing rental rate increases, as wages continue to rise. When this happens, it will suddenly become more favourable for people to buy their property than rent.

Of course there will still be a few who simply can't afford to buy, but nonetheless I predict somewhat of a buying frenzy in Berlin, first when the government actions the rental law legislation, and then in around 4-5 years when the people now buying outside germany bring their money pots back to get on the property ladder.

Even if my prediction is wrong, you will have no trouble selling your properties. Berlin is known for its world-beating residential rental market, when rental rates are easier to increase and rental yields start to increase across the board, doubling in many places, apartments in Berlin will be a doddle to sell. There's no downside, even if you and up with your property on the market for a while, you'll be making a killing on the rental of it all year round.

Liam Bailey
Head of International Research
David Stanley Redfern Ltd

 

[rayk150]

I say in respect to you Liam, I am a investor in Germany many, many years ago before the so called boom (Irish running over with pockets full or English also looking to get in on the act among others) that is going on now, you are correct in many statements, but you are also a property agent with interests in Germany, looking to sell properties, that’s ok too, you got to EAT too my friend.
I for one am only a investor and retired property developer, I am retired from developing property in many lovely places around the world (and some not so nice),I have lived my dream, but I am now a investor now looking for a profit be it today, next year or long term, buy to sell, buy to hold, but Germany is buy to hold, and hold means hold, because in a few years it will be hard to sell for many, many investor are buying crap in Germany, be it commercial or apartments or as you said it will be easy to sell, maybe true, but at a small profit for sure, yes a market will be for so many to sell to.

Germany think hard about it, it’s not a bad investment, also not a very high return investment, buy to hold long term folks, selling in a few years???

 

[DSR Media]

I agree with a lot of what say also Rayk, there is advantages of buying German property, as put away for something for the future, to pay your kids college fees in 18 years or so, or a retirement fund, that kind of thing.

I would be interested to know, how much you paid for your Berlin apartments, and where they are so I can calculate Capital appreciation in real time.

I would also be very interested to know if you are letting your properties and what kind of income they are bringing in.

 

[neustria]

I have apartment in Berlin, trouble is the Germans are buying in Eastern Europe and we are buying in Germany, is this saying something?? Rayk150 no. 3
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The consensus in Germany from what I have seen is that this country is not a place to invest in for people who are looking for mid-term capital gains, excepting certain niche markets such as Munich. This perception comes from the fact that for many years now prices have been pretty stable here whereas markets nearby (France, UK, Spain) have generally outperformed the German market. This in large part explains why Germans looking for capital appreciation are looking to Eastern Europe. The countries mentioned above have already had their speculative runs so it makes sense to not stray too far afield - all the while aiming for markets which are still trying to catch up with West European standards - and prices.
Their remains the possibility that those looking east may be ignoring the opportunities right under their noses, following the idea that the country's real estate market now has some catching up to do. Their are excellent arguments to support this idea. But the behavior of the Germans on their home turf should perhaps not be ignored completely.