Why would someone buy in Germany?
Hey;well, there are tons of reasons why to invest - and of course a few why not - but you have that in all locations of the world.
Taking into account that you can get the same m2 price in Germany than in Bulgaria or Romania, I think it´s obvious that there´s still plenty of room for price improvements - even after the last runup.
Happy investing and remember.
CASH IS KING
Staying with the premium end of the market in Munich,
real estate prices are still rising. According to a recent
report in the German newspaper Die Welt, a 100m2
apartment in the sought-after Maximilianstraße in the
centre of Munich would have cost €1.2Million at the
beginning of this year, but, in the meantime has gone up
16% in value and such a flat now costs €1.4Million. Also,
going down the scale slightly, prices for detached houses
in Munich have increased by 8% so far this year.
I just noticed that Buy Munich Property has changed name to Invest German Property and is now providing analysis and information about the whole of the German property investment scene across the entire country, although with a specific focus on Berlin currently. I found them a really good value source of knowledge and am looking forward to seeing what Michael Parker has got to write about Berlin rather than just Munich. Germany is a very attractive place in which to buy property, especially with the UK market stagnating at best if not about to fall off the cliff. German house prices are still showing an upward trend, and I'm certainly keen to continue extending my portfolio there, even if it's only a hedge against future rampant inflation.According to latest Buy Munich Property (and Die Welt newspaper),there is interesting growth in some German areas... This, whilst US, UK, Ireland, Spain are suffering real estate troubles. If you're looking for a safe haven with a seemingly stable currency, Germany looks a very safe pair of hands, which also offers some growth opportunity.
Good post Liam.Of the established markets my money would go into Berlin everytime. Prices range from very low- to low depending on what borough and what locality you buy in. And contrary to what i am reading on thsi thread, prices are rising steadily, as head of International Research for David Stanley Redfern Ltd, I have been watching them grow.
There are no off-plan units, and there is a shortage of housing. Demand for good rented accomodation far outweighs the supply, and the population is growing, so with no new development, the situation is only going to get worse, which equals better for property investors.
Okay, yields aren't spectacular, and it is hard to raise rental rates so yields tend to drop. But on the other hand the rental will be residential, and will probably start at around 8% before dropping. As has been said on this thread, Berlin is one of the best places in the world to make a long term property investment.
I've heard good things about Berlin but I'm a bit concerned about how easy it it is to sell on a property. Only 10-15% of Berliners own their own property so its more than likely you would end up selling on to another investor.
Has anybody encountered problems selling on? Can anybody tell me roughly what letting/management fees are?
You're right, this has been a bone of contention for some time.When are the Germans going to sort out there mortgage market for foreigners.
That is stopping alot of capital appreciation, and real leverage in the market.
50% loan to values, or if you very lucky 70% but nothing like it was in UK, USA, Spain, and before people say what a mess it is in these countries, the reality you could make money with very little money.
In Germany you need a wedge to get in, which deters other investors, who also need a wedge to get in.
The growth of the prices will be accompanied by the growth of DEBT, in the market, its logic.
You will only win big, if the germans or other people take on more debt. So when is the loosening of mortgages going to happen in Germany?
Unfortunately I doubt that the mortgage situation in Germany for foreigners will improve very quickly in the short term future.
With regards to Subprime ripple effects in Germany, there are some pretty impressive ripples.
Just recently Bayern LB announced a write down of 4.3 bn Euros, West LB revealed a net loss of 1.6 billion euros in 2007, Deutsche Bank AG expects write-downs of around 2.5 billion euros in the first quarter of 2008 and UBS projected around 7 billion euros (12.5 bn CHF) in write downs.
IKB of course was the first to announce expected losses back in 2007 however the expected 800m loss was recently announced to be "only" 200m.