Purchasing an Apartment in Berlin: considerations you need to keep in mind
30 October 2023
Berlin attracts many foreign investors with its unique atmosphere, cultural diversity, and opportunities for a successful life. However, before embarking on your search for an apartment in Berlin, it's important to be aware of some crucial nuances that can make your acquisition even more successful and profitable.
The ERA Development team has compiled a list of factors that play a key role in the German real estate market:
1. Capital Requirements:
In Germany, there is a requirement for a significant amount of equity when purchasing real estate. Most banks require foreign buyers to contribute at least 20% of the property's value as a down payment. This may limit the accessibility of buying an apartment for some individuals.
2. Legal Aspects:
Purchasing real estate in Germany involves many legal aspects. For example, the buyer must engage a notary to formalize the transaction and also consider the taxes and fees associated with the purchase. Understanding all these legal nuances may require professional consultation.
3. Rental Opportunities:
Buying an apartment in Germany can be a profitable investment, as the country has a strong real estate rental market. However, rentals can be regulated by various rules, including rent caps, lease terms, and tenant rights.
4. Regional Disparities:
The German real estate market is highly influenced by the region. Property prices can significantly differ in various parts of the country. For example, housing in Munich or Frankfurt may be much more expensive than in less popular cities or rural areas.
5. Mortgage System:
Germany has a specific mortgage lending system. Foreign buyers may need to have a good credit history and prove their ability to repay the mortgage.
6. Tenant Rights:
Germany has a strong system of tenant rights, which can create challenges for property owners. For instance, landlords may encounter restrictions when evicting tenants or raising rent.
7. Taxes and Fees:
When purchasing and owning property in Germany, there are various tax obligations, including property tax and property appreciation tax. These taxes can significantly affect the financial aspect of property ownership.
Purchasing an apartment in Germany can be successful if the buyer is well-informed about all these nuances. We offer qualified legal and financial consultation before starting the process, as well as full support throughout the purchase, from the property search to property management. This will help you avoid unpleasant surprises and ensure a more confident and successful investment in German real estate.
For more information, please leave your request on our website's contact form or call us at +49 (30) 516 417 63
