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Buy to Let Mortgage in Germany/ General Advice

Discussion in 'German Property' started by christel, Aug 12, 2008.

  1. christel

    christel New Member

    Hi All,

    Looking for some advice, Im 23 and looking to enter the buy to let market in Germany so looking for advice on who to approach for a mortgage. I do not currently own property in the UK and my age is relatively young so I know it may be difficult to find, but any advice would be much appreciated!?

    Would I be right in saying that yearly or month to month returns are not huge?
    But it is the long term capital gains that are the main drawing point.

    Is there anything that I should consider/ look into or any particular area that is worth investigating

    Also, as i will be a first timer to the German/Buy to Let market I would be grateful of any advice at all!?

    Thanks and any help will be highly appreciated!!!!!

    Chris
     
  2. Find a good agent for a start , one that deals direct to the source with a german developer,

    Find a Cheap property for example a 1 bed apartment (20,000 euros) (maybe one that has been reprocessed by a bank as they have to sell it at under market value) in a big city with a decent yield between 7% and 10% which has a long term tenant in place (maybe near a university they have waiting lists for students ) , with a rent pool option (Guaranteed rental income) and a Good German run management company in place.

    A Good Agent can arrange a German mortgage for you once they have all your details.

    Next decide where ? I think Berlin is over rated there are lots of other options Hannover, Kassel, Magdeburg, Dusseldoff, Leipzig amongst others its up to you !
     
    Last edited by a moderator: Aug 16, 2008
  3. OwnerInvest

    OwnerInvest New Member

    Why not go for capital appreciation AND strong rental return? Cities like Frankfurt for example have an outstanding hotel industry. With overall hotel occupancy averaging well above 75%. And the hotels you invest in are managed by professionals on your behalf so you dont have to worry about maintenance or management (And if this is your first time how easy is that going to be in a foreign location?).
    At the Nest in Frankfurt with just 50% occupancy (ie. the hotel rooms are occupied for just half of the year) you're looking at a return of 14% on your investment. You need 50% of the purchase price to buy in and the rest is financed. The developer is SO confident of the returns that he has agreed for the remaining 50% finance to come directly out of income earned by the rooms - which basically means NO mortgage.
    Anyway, if you're interested go here: Invest in the Nest Hotel Frankfurt | Hotel room investment Germany | Apart-hotel Germany | Buy to let Investment property Frankfurt Germany
    Best of luck with choosing the right investment!
     
  4. Bank of Richard

    Bank of Richard New Member

    Hello Chris, I live here in Berlin ,and your right, it is more down to capital appreciation than the income you receive . I deal direct with a bank and can also arrange a mortgage for you .
    Do you intend coming to Berlin soon is there any way we can talk so i can discuss the oportunities here in Berlin?
     
  5. I have been looking for bank repossessions in Berlin, but they only seem to have the higher end of the property market - nothing in the region of 30-40 thousand Euro in West Berlin!
     
  6. Bank of Richard

    Bank of Richard New Member

    I can get property from the bank , the cheapest i have at the moment is €42k but you then must allow 7.14% commission and 8% closing costs( 4.5% German Property Tax, 2% lawyer and 1.5% notary fees).
    talk to you soon.
     
  7. I had already factored in these costs! :)
     
  8. Bank of Richard

    Bank of Richard New Member

    I will search again for you and let you know what the best deal i can get you.

    Talk to you soon.:)
     
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