Buying a property in Berlin - help please?

Discussion in 'German Property' started by CarterUSM, Jan 13, 2016.

  1. CarterUSM

    CarterUSM New Member

    Hi

    I am seriously considering investing in a property in a city in Europe where there is a year-round demand for visitor accommodation, and also where there appears to be scope for capital appreciation. I intend my maximum outlay to be no more than £60,000. My intention is to let the property out as short-term visitor accommodation, and the ultimate objective being long-term capital appreciation. I would put management of the property in the hands of a local management company who would be responsible for furnishing and maintaining the property; collecting payment; and handling reservations.

    After having done some initial investigations, I would be particularly interested in the possibility of buying such a property in Berlin, as there are fewer restrictions on foreigners owning property in Germany than in many other European countries; property still appears to be relatively inexpensive there; there is a year-round demand from visitors; and the local market would still appear to offer scope for capital growth.

    I do not anticipate any problems in financing the purchase as I have the necessary funds readily available.

    I am aware of the capital gains tax condition for the sale of any property in Germany within ten years of its purchase.

    What I would really appreciate is if anyone may be able to enlighten me regarding the potential advantages and disadvantages of my proposed course of action. Specifically, I would be interested in your thoughts as to whether there are other areas in Germany, or elsewhere in Europe, where property is still relatively inexpensive, where the scope for capital gains is thought to be favourable, and the procedure for buying property is not considered to be too cumbersome.
    In addition, I would be interested to hear people’s views as to the pros and cons of buying an overseas property with the intention of letting it out for short-term visitors, as opposed to letting it out to long-term tenants.

    Finally, I would be very grateful if anyone could point me in the right direction regarding the following; (i) other sources of information relevant to my enquiry; (ii) any other forums devoted to overseas property investment; (iii) any UK agents specialising in overseas property, (iv) any overseas agents with offices in the UK (specifically in Liverpool, Manchester or central London).

    Very many thanks in anticipation of your assistance, and I look forward to hearing from you.
     
  2. aurelie

    aurelie New Member

    I own three apartments in Berlin, if you have any non-abstract questions about properties, just write me a personal message.
     
  3. Hi @aurelie - how do you feel about Brexit going forward and how it may impact cross-border investment between the UK and Europe?
     
  4. uwegfa

    uwegfa New Member

    Hi CarterUSM,
    Investing in short-term rental in Berlin is a bad idea. I don't know where you are with your plans since the post is a bit older but you should know that the Berlin city government has basically banned short-term rental (like airbnb) in regular apartments and they are starting to crack down with heavy fines on offenders.
     
    Last edited by a moderator: Jan 6, 2017
  5. khaledbedda

    khaledbedda New Member

    My wife own an apartment in Berlin.
    I think £60,000 will be difficult to find a good investment in Berlin.
    I would say that EURO 170,000 would be a good start.
    Keep in mind you have to pay 15% due to transaction cost.
     
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