Court Auctions are cheaper than Public Auctions

Discussion in 'German Property' started by Investy, Jun 17, 2008.

  1. Investy

    Investy Senior Member

    I'm not an agent, although I did toy with the idea once, just a dead keen oversea's investor, and wanted to share my Berlin experience.

    I bought with a German freind who is a London based Lawyer. The best method we found for aquiring investment grade property as cheaply as possible was to buy at Court Auction - an arcane little known system, but very useful as properties can be up to 60% cheaper.
    The properties come with the safest type of German property title and we felt for this reason is a safer method when compared with buying at Public Auction.

    We have a local agent on the ground that bids on our behalf and manages the properties, indeed it's the managing side he is interested in, and his motivation to help us aquire decent highly rentable property (not in his interest to aquire a dog that will eat into his managing time).

    We targeted just outside Berlin but within striking distance of the airport that is under construction.
    Our best buy was under £30,000 with an existing tenant.

    The reason I make this post is to enable fellow investors to recognise the crucial difference between the Court and Public Auctions.
    If and only if you are a serious and willing investor I can gladly pass on your details (just because it's good to network - and good for my relationship with our German property manager), but please ABSOLUTELY NO TIME VAMPIRES - I do this as a favour not some time costly service:D

    Please do not enquire if you are a Which Magazine addict - this will not be for those who like everything buttoned down to the enth degree - you need to deal through ordinary agents. All I ever get is VERY brief property details and a grainy photo - and then we buy if it seems cheap and the manager recommends it - again our manager doesn't want dogs to manage. No surveys, just a Court pre - sale report in German only.

    Cash only, no time to arrange mortgages on auction properties. We find the majority of offers need decorating and in some instances renovation which our manager arranges.

    The majority are Bank reposssessions. The manager only gives people one chance - if he gets asked lots of time consuming questions and the person does not buy, he wont offer again - why bother when there are ready and willing buyers. As I say, not for the feint hearted:eek:

    Sorry AGENTS - this is for private individuals only - our chap does not deal with other agents.
     
  2. zuby84

    zuby84 New Member

    Investy,

    What kind of returns are you managing to get through your manager and what kind of size and types of deals are being done (ie single apartments/apartment buildings/commercial.)

    I would appreciate it if you/or your agent could contact me through pm with perhaps a phone number so I can discuss a little more.

    Kind Regards,
     
  3. Investy

    Investy Senior Member

    Zuby, I cant find anyway to contact you as your user contact info has no information contained.

    You can PM me if you like.

    As for returns we like to aim for a yield of around 10%, although some are achieving 20%. Capital growth - too early to say.
    Types of deal are varied from single appartments to large blocks. He has offered us some commercial property, however we feel the risk predented has been to great and there are just too many unknowns.
     
  4. zuby84

    zuby84 New Member

    Investy,

    Drop me a line to zuby84 [at] hotmail com

    Thanks
     
  5. Felix form Germany

    Felix form Germany New Member

    Hi,

    I am working for a german bank in Essen. We do court auctions and also work as agents for property out of NPLs.

    Ture is: You can buy a 4 room appartment in Essen or Berlin for 30.000$ in a court auction. This might be the half price of the price wanted by court.

    BUT: There is a reason for this. All Property from NPL customers, which can be sold easily because of good price/quality relationship, will be sold before court auction. You never buy for tooooo much money, because it is an auction. but you need someone to manage theproperty and in most cases you need to invest even more money to get a tennant. If there is already a tennant inside, it might be, that he not allways pays his rent. Germant tennant law is very in favor for the tennants.

    Please do not invest in court auctions, if you have not seen the Property with your own eyes.
     
  6. thecapaccino

    thecapaccino New Member

    I am new here, and am trying to sell my property in East Germany.

    It has a LOt of land...with old buildings.

    Trying to find out how to sign up for any auction sites except DGA which has bad customer service.

    Any information would be appreciated!
     
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