Germany
Now being of increasing interest for the canny investor. Buying to let is a worthwhile investment as it the 'norm' in Germany to rent; this accounts for over half of the population. Apartments in the cities and suburbs are popular where there can be a shortage of housing. At least 75% of German houses have been built since the Second World War, though you are still likely to find many lovely traditional village homes in rural areas. There are many properties in the former East Germany, which need modernisation, these properties hold a generally lower value. New and old apartment blocks can also be bought as larger investment projects. Berlin is a fast-growing city of differences, excitement and prospects, well worth a look.
The Rhine and Mosel valleys are popular for rural lifestyles. Germany enjoys a very high standard of living with fairly low inflation. The cost of living is higher than some other EU countries but not very different from that of France and the United Kingdom.
Main Cities: Berlin, Munich, Hamburg
Language: German
Currency: Euro
Religion: Christian
Time zone: CET (UTC+1) - Summer (DST) CEST (UTC+2)
Getting there: Easy, many different charters and scheduled flights to Germany all year round.
Buyer's Guide
When you have found your property that you want to buy and agreed a selling price, a solicitor/lawyer or notary is required to carry out the legal work and contract obligations, checking that no liabilities exist. There are no restrictions on Foreign Ownership.
On completion of the sale of the real estate, the title deeds are registered with local land registry enabling the title to transfer to the new owner.
A public notary has to be used for the conveyance all Real Estate contracts.
Fees
You would expect to pay a total around 6-7% of the buying price, which comprises of the transfer tax of 3.5% and notary fee of about 1.5%. The Real Estate Agents fees vary up to 5-6% and would ordinarily be split between the buyer and seller.
Property Tax
Land tax is charged in Germany to cover local services and is rated usually below the current market value and would be around 1% of the rateable value. Non-residents are subject to wealth tax on property owned in Germany of around 0.5%.
Capital gains tax is charged at normal income tax rates on property sold within ten years of purchase.
Mortgages
You can borrow up to 70% from German banks and building societies and they would normally expect a proven track record of regular monthly savings of up to six years before it is approved. The maximum term would be up to 30 years on a fixed rate of interest.
For more information on buying property in Germany, please contact the Real Estate Agent or visit the German Governments website: www.bundesregierung.de
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