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Lichtenberg Area for Real Estate

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HI 
Anybody here went to the area Lichtenberg ?
Near Paul-Zobel-Straße ? 
Is it nice area to live ? or buy a property for Investment ? 
A small studio is offered for sale over there !

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I guess it depends on your definition of nice. I'd probably choose other areas of Berlin first, over Lichtenberg.

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Plenty of tower blocks, some parks and green spaces but Lichtenberg is hardly the centre of the action in Berlin, just mainly residential. Depends what you're looking for.

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A small studio offered there for sale for just EUR 157,000 in a new 2000 building and it is rented 340 Eur. 

But some friends tolds me that foreingers are not common in this area.

I am not planning to move there anyway.

 

Most of the areas like Prenzlauer Berg , Charlottenburg, Wilmersdorf, Mitte there are no good properties for sale below 170,000.

 

There are some for sale but they are usually built before 1930. !!

 

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Built before 1930 doesn't mean it is bad.

With patiente you can find a decent apartment in a more central area for 170K. Buying in Germany is a very slow process.

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That's a 2.6% return on your investment - assuming you actually get to pocket the entire €340/month, which is doubtful (since expenses like the maintenance fund and building manager can't be passed on to the tenant).

 

Will you be paying cash or financing most of it through a loan?

 

Does it have to be Berlin? There are other real estate markets where the prices are much lower compared to the rents - Schwerin and Magdeburg come to mind. Although given your poor experience with real estate investments so far, I wonder whether a purely financial investment (indexed stock fund or bonds) might not be a better choice for you this time around. Having all your money in real estate isn't a good thing.

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10 hours ago, Krieg said:

Built before 1930 doesn't mean it is bad.

With patiente you can find a decent apartment in a more central area for 170K. Buying in Germany is a very slow process.

What "central areas"  you recommend ? 

What about Tempelhof ? Schöneberg ? WEDDING ? Niederschoenhausen ? 

 

I can be patient but I am not living in Berlin. So I may stay for 4-8 weeks to finish this. 

 

 

 

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10 hours ago, El Jeffo said:

That's a 2.6% return on your investment - assuming you actually get to pocket the entire €340/month, which is doubtful (since expenses like the maintenance fund and building manager can't be passed on to the tenant).

 

Will you be paying cash or financing most of it through a loan?

 

Does it have to be Berlin? There are other real estate markets where the prices are much lower compared to the rents - Schwerin and Magdeburg come to mind. Although given your poor experience with real estate investments so far, I wonder whether a purely financial investment (indexed stock fund or bonds) might not be a better choice for you this time around. Having all your money in real estate isn't a good thing.

Thanks

The return on real estate in Berlin comes from value increase not rent. I see my first investment value has increased by at least 5% annually. 

I will get rid of the property manager and use the  WEG administration. I think they can also pay Ground Tax for me.  

 

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