Buying real estate in Germany: everything you need to know

From vibrant modern cities to historic old towns to tranquil lakes and forests, Germany has everything. Still, if you want more, residents can ski in the eclectic culture of the Alps, provincial vineyards, Italian markets and Amsterdam in nine countries bordering Germany. All of these are easily accessible by car or train. listings of properties for sale in Berlin owners inside and outside Germany can benefit from higher home prices and safer investments. But if you are not a resident, how can you access the German real estate market?

 

On Thursday, September 24th, Michael Heming, CEO of Fine & Country Germany, Austria and Switzerland, participated in the fourth webinar of the Worldwide Wanderlust Webinar series. Michael reveals all about the German real estate market, the differences in how realtors operate, and the benefits of living and owning First Citiz Berlin in Germany for those looking to move to Germany or invest in foreign real estate. I made it.

 

Overview of the German market

 

The German real estate market is very stable and deals particularly well with the coronavirus pandemic. Demand for residential real estate is high and supply in the market is low, so prices will only continue to rise. Depending on the location, investors are even willing to accept a yield of only 3%.

 

Not surprisingly, the most popular areas for buying real estate are the most expensive and located in the following seven locations known as the “Big 7” cities.

 

  • Berlin

 

  • Dusseldorf

 

  • Frankfurt am Main

 

  • Hamburg

 

  • Cologne

 

  • Munich

 

  • Stuttgart

 

In fact, even the surrounding areas of these cities benefit from the high demand for real estate.

 

As the year continues to recover, the overall economy is expected to experience only a 4.6% decline in 2020. By the second half of 2020, economic growth has already begun to recover.

 

Benefits of buying in Germany

 

Compared to other European capitals, in Germany you get more homes for your money. Prices are more competitive than London, Greece and Madrid. However, real estate investors are safe to know that home prices continue to rise and secure real estate investment is guaranteed because demand is higher than supply.

 

Lifestyle opportunities in Germany

 

Germany is a very safe country and offers a variety of lifestyle opportunities. One of the bustling “Big 7” cities, the historic old town with romantic wooden houses, the north coast, beautiful islands such as Zilt, mountains, rivers, the Alps and Bavaria with abundant winter sports On the lake, you can find the perfect place to live for your dream lifestyle.

 

If you are an avid city resident, Hamburg is a banking metropolis with the country’s largest harbor, magnificent homes, and a wonderful castle adjacent to a large forest. Munich is a metropolis of Bavaria with large boulevards and easy access to the Alps and lakes near Austria or southern Tyrol in northern Italy. The city of Munich is in a very good location, offering a safer investment that is cheaper and always more expensive than London.

 

Not only does the landscape support all lifestyles, but German society is very well organized and regulated, which makes it attractive to foreigners. The German health care system is also famous as one of the best healthcare systems in the world.

 

 

 

How Real Estate Agents Work in Germany

 

In Germany, committees are not uniformly regulated. There are three different existing models.

 

  • 5% buyer fee

 

  • 6% seller commission

 

  • Buyer-seller split fee 3% / 3%

 

At the end of 2020, there will be a change in the law that only allows sharing fees or seller fees.

 

If you are considering purchasing in Germany, please contact your local distributor for fees as fees vary across Germany. -Can I link to the contact information for my German office?

 

What about buyers outside Germany?

In some cases, the parties may not be on the scene for notarization. Foreign buyers or sellers who do not want to travel. These members will be represented at the time of appointment (usually by Fine & Country Germany) and will then be approved by a notary public or the German embassy in their home country. Fine & Country Germany has many years of experience working with buy a property in Germany international clients and has a lot of experience in this area. The Fine & Country Germany office speaks seven different languages, including German, English, Portuguese, Spanish, French, Italian and Polish.

 

If you are interested in investing in a rental property that you do not intend to live in Germany, overseas buyers can do this without any additional taxes or registration. All homeowners who rent real estate only have to pay the usual income tax in Germany. When you talk to agents, they are willing to talk to you throughout the process.