Buying a small flat in Berlin for short-term rentals

Discussion in 'German Property' started by Dotexe, Mar 17, 2009.

  1. Dotexe

    Dotexe New Member

    Hello everyone, I'm new to this forum and I'll really appreciate to listening to your opinions.
    I'm italian, 30 years old and with a small amount of cash to invest. House prices here in Italy are really high, especially in cities like Rome or Milan (where I live) and with my euros I couldn't afford nothing but a box or a sub-ground cellar. But I saw house prices in Berlin are very low and affordable, plus, I love the city and once per year I try to spend some holidays there.

    So, here's my question: with a budget of max 50 000 euros (less is better :D) is it worth to buy a small flat in Berlin, let's say around 30/35 square meters? The idea is to rent it for short times, eventually letting the management to a local agency, so I would able to use it for my own holidays. I'm looking in Schoeneberg-Kreuzberg, Prenzlauer Berg or Friedrichshain.

    Is it a stupid idea or it could work? I don't mind to have huge returns, but I want a small, solid, long term investment and at the same time "a place to call home" in my favourite european city.

    Thank you for your replies and for every piece of info you could share :eek:
     
  2. german ophile

    german ophile New Member

    I think for the very long term it is a good investment.

    Of course, a lot of people have been waiting for this very long term to appear in Berling for a while.
     
  3. Dotexe

    Dotexe New Member

    Thanks for your reply german ophile. I know there are better opportunities in other cities than Berlin: I know rather well Hamburg and Muenchen, and rents are higher, wages and local economy are far better than Berlin. I took some time to read other posts here, and I found it could be interesting to invest in cities like Dresden or Leipzig. I found a little outlook for 2009 in a website (can't publish the URL, sorry)

    But my point is another one: Berlin is a capital city and attracts a lot of tourists. It's cheap, it's culturally engaging and offers a unique mood and atmosphere. You can't make a living with mood and atmosphere, I know, and this is the reason I thought a short term rent property and not a simple Buy-to-Let. Focusing on interesting neighborhoods, and trying to appeal the tourist...

    Second point (and it's very personal and local): Italy is getting worse everyday. Public debt is HUGE, economy is collapsed, credit crunch is beating hard. I don't want to sound too pessimistic, but it would be nice to have an emergency escape, and Germany is the most solid economy in Europe.

    It would be great to listen to someone who did this kind of investment and to have some guidance.
    Thanks again and sorry for my english grammar mistakes :p
     
  4. neustria

    neustria New Member

    Dotexe, I understand your reasoning but there is a big jump from a simple idea to making it concrete. This crisis is dragging us to lower levels than any seen in the most pessimistic forecasts. The drop has been very sudden and the recovery will be.... very very slow.
    If you have cash to invest, consider yourself lucky, hold on to it, and watch the way things develop. The German economy is under great stress also and nothing says that it will stay immune. This is a world-crisis now and there are no islands of security that I know of.
    Finally, if you buy to rent you won't be able to use your flat. You will need to have it managed - which will be costly. There will be tax issues, and especially language issues, unless you know German.
    Anyway I think that there are a million reasons to wait and hardly any to go ahead.
    My opinion only of course... Good luck on whatever you choose.
     
    Last edited: Mar 29, 2009
  5. Ittai66

    Ittai66 New Member

    Curious to know the results

    Hi Dotexe

    I'm curious to know whether you eventually bought an apartment and what happened with it.

    I have done it myself a few months ago, in Berlin, and I consider turning it into a holiday letting.
     
  6. georgesmith80

    georgesmith80 New Member

    I agree, you should definatly invest in Berlin. You may have difficulties finding a small flat for sale which is in reasonable condition. With some research you should be able to find something for 50,000 Euros. Good luck
     
Loading...

Share This Page