Buying property in Germany

339 posts in this topic

1 hour ago, Jonny said:

Also, I've heard that sometimes the new builds without a makler fee are actually more expensive per square metre than if you bought one with a makler. Don't know if that's true or not.

 

A family member has been looking to buy for well over a year, looking at both new builds and pre-owned, and has found this to be consistently the case.

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2 hours ago, Jonny said:

If you think it was worth it then ...

But if you as a buyer concluded it was NOT worthed, you end up facing the choice take it or leave it. 

With the market so hot, driven by scarcity of supply ...

 

Our Makler also was very good. Had he been very bad, we would still have bought, at the same price, just with so few houses to choose from its hard to be picky on the Makler...

 

The only financial advantage in the Makler being good to the buyer is looking far into the future. If/when we sell, in 30yr time, I will remember he was a good Makler. 

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3 hours ago, Jonny said:

If you think it was worth it then ...

It reminds me of motorists buying fuel (ok, or electric these days).

How many think it's NOT worthed and take actions accordingly. Yes, some, but most simply would tell you they have no choice...

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This is a bit of a departure from the last few threads. We've been looking for a house to buy in Hamburg (corona-made-us-realized-we-need-to-move-closer-to-the-mil) and we've been actively searching for the past 8 months or so.

 

So far, we were close to making an offer on 1 (had the Gutachter appt confirmed and everything) but the makler called us the night before and said someone else beat us to the front of the line...another house we actually made an offer on was offered to a friend of the neighbour's - a friend who suddenly showed up on the list of interested parties :blink:. We suspect the first house was also sold to someone who knew someone who knew someone's someone's someone. 

 

So, it has been a no-go on 2 out of scores of houses we've viewed  - during corona times. The stress :(

 

We are determined not to feel discouraged but we can't help feeling we've not tapped into all possible avenues. Our biggest setback I think, is the fact that we dont know many people in Hamburg (we're primarily moving up there to be closer to my mother-in-law who  lives an hour north of HH) who know people who are friends with people who are selling houses in the areas we're looking at. 

 

My question is, is there some kind of resource or secret house search network we could tap into? :ph34r: We've canvassed all standard immobilien websites and are already subscribed to some makler-lists. We are seriously nice people who could use a break in our house search! Perhaps someone has some kind of insider search tips for us? Any help would be much appreciated! ^_^

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23 minutes ago, mendaki said:

is there some kind of resource or secret house search network we could tap into? 

No, sorry.

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On 30/03/2020, 12:42:53, MadAxeMurderer said:

Conventional wisdom is that the Germany property market is overheated.

 

With Corona some people will be unable to pay rent. Some landlords will be unable to make mortgage payments. There will be short term protection, but we are going to emerge this less wealthy. Once there are more people selling than buying the bubble bursts.

 

So I would expect German property prices, especially in Munich to be lower by the end of this year. It could be as little as 20% or as much as 50%

 

Always interesting to look back at predictions and compare to what actually happened. Turns out prices have increased by 11% in Bavaria (https://www.sueddeutsche.de/bayern/immobilien-muenchen-lbs-und-sparkassen-immobilienpreise-steigen-weiter-dpa.urn-newsml-dpa-com-20090101-210412-99-173039)

 

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Is there still a moratorium on rents and mortages? If so then I would wait until the moratorium ends before buying a house ... then the prediction will come true.

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13 minutes ago, wien4ever said:

Is there still a moratorium on rents and mortages? If so then I would wait until the moratorium ends before buying a house ... then the prediction will come true.


Dude, that’s over since one year ago.

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20 hours ago, FrenchguyinMunich said:

 

Always interesting to look back at predictions and compare to what actually happened. Turns out prices have increased by 11% in Bavaria (https://www.sueddeutsche.de/bayern/immobilien-muenchen-lbs-und-sparkassen-immobilienpreise-steigen-weiter-dpa.urn-newsml-dpa-com-20090101-210412-99-173039)


 

The crash will for sure come anytime now, it can’t be that the “I’m better that Buffet” people were wrong. 

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1 hour ago, mtbiking said:


Dude, that’s over since one year ago.

 

whoa.. then things are getting interesting... so many people wanting to buy right now.

 

I'm lucky I was able to buy something in late 2018. Best time to buy was probably before 2012 before price hiked continuously.

 

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Morning all! Does anyone happen to have a contact for a good Gutachter in Hamburg (Mitte/Nord/doesnt really matter so long in HH)?

 

I've combed through the threads on TT and normally there are tons of referrals for all sorts of services but haven't seen one for a Gutachter/ Surveyor. 

 

Would be ultimately grateful! Danke danke!!!

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Hi, could someone recommend an English speaking notary and a surveyor in Munich? I went through a lot of topics, but couldn't find anything specific. I noted that Friedrich Götsche is recommended, but it'd be a bit easier if there's someone who speaks English as well.

Thanks a lot!

 

 

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4 hours ago, zmai said:

Hi, could someone recommend an English speaking notary and a surveyor in Munich? I went through a lot of topics, but couldn't find anything specific. I noted that Friedrich Götsche is recommended, but it'd be a bit easier if there's someone who speaks English as well.

Thanks a lot!

 

 

https://www.notare.bayern.de/notarsuche.html?id=5&name=&location=M%C3%BCnchen&languages=Englisch&foreign=&access=

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Hi All,

Need some insights on What to look for while buying an old house or apartment in Germany?

Till now I was looking for a house or apartment for self use near Munich both new and old but haven't found anything suitable, within budget close proximity to the area where we are living currently. (Munich East)

 

Last few days ago I thought of buying a smaller 1.5 to 2 Zimmer Apartment as an Investment and put it on rent. Instead of getting stuck with a bigger loan and bigger commitments, I thought buying small might be more useful. I can buy something smaller and then in 2-3 year buy one more and like that. I am not sure how much hassle is it to put apartments on rent and repair works and dealing with tenants etc.

 

I found few apartments from 1960s to 1980 around 400k which can get a warm rent of 1000-1200€.

 

Since I am not a finance guy, I am not sure if it Is it worth to invest a money at this point. I can shell out say around 40-60k to buy such an apartment and then mortgage costs could be covered by the rent.

 

However, what are the pitfalls and things to look at. The only ones I know so far are:

 

1. Asking for Repair account balance

2. Asking for some document which shows any major/minor work done till now and anything planned for future like roofing etc.?

3. HausGeld?

 

What else to look for? Any pointers will be appreciated?

 

I also read in some forums that we can hire a GutAchtrer to have some further analysis of the property and some peace of mind.

 

P.S. I am not sure about the current situation with growing Inflation and corona effects in coming 12-18 months. So little hard to decide, which side to go 

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4 hours ago, DanglingPointer said:

Since I am not a finance guy,

 

become a finance guy.

 

you go from wanting to buy an apartment for yourself to buying a flat for an investment as though those two are related.

 

people want to simplify complex financials and then wonder where their money went or why they can't meet their mortgages.

 

I bet there are books with titles like "real estate investment" in german.  buy a few and read them.

 

Up in the top right-hand corner of this page is a box with the word "Search" in it.

 

 

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8 hours ago, DanglingPointer said:

What else to look for?

I´d like to see the protocols of the meetings of the owners. There you´ll learn about issues discussed in the past and maybe investments planned (which you´d have to contribute towards). Also have a look at what is and what isn´t allowed in the respective building (e.g. commercial activity? pets? AirBnB?)

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also look at the tax implications of rental income (potentially not just for your German income, but also for the US part of it - if you're a US-citizen).

 

Renting out apartment (or house) gives you a tax advantage mainly through depreciation. Your taxable income will be lowered by a "loss" on the rental income. The effect of that is best utilized, if the purchase price of that rental property is less than approximately 3 times your annual income before taxes.

For example: if you make 100,000 € per year, your rental apartment should cost less than 300,000 € to buy.

 

Also, if you plan on cashing in on the investment by later selling it, there are again tax consequences to consider.

If you are not a US-citizen, simply hold on to the property for 10 years. After that Germany will not tax your profit from the sale.

If you are a US-citizen, you want to think long and hard if you really need to sell this piece of real estate. There are capital gains, and depreciation recapture to figure in. 

 

 

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DanglinPointer,

 

Adding on to what Karin_Brenig mentioned above:

 

US taxes:

If you are a US citizen, you will have to claim the rental income on your US tax return.  You get the foreign tax credit for the German income taxes you pay.  When you sell the rental property, you will pay tax on the gain.  You will have to factor in the depreciation when calculating the gain.  

 

German taxes:

You'll add Anlage V for rental income when you file your German taxes.  If you hold on to the property for 10 years, you will not be taxed on your profit. 

 

You'll have to decide if you want to be a landlord.  That's the big part of rental property.

 

S.

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On 4/20/2021, 9:44:27, mendaki said:

is there some kind of resource or secret house search network we could tap into?

 

You can build your own network.

 

Once you've been to a viewing and become friendly with the agent they will usually put you on their preferred list of contacts. This list receives property availability announcements before they get posted on public sites.

 

Something like 60% of properties are sold this way. They never make it onto Immoscout or whatever.

 

The problem, of course, that each agent only sells a handful of properties per year, so you have to be on the list of many agents.

 

So go to lots of viewings with lots of different agents, even to viewings where you're not necessarily interested in that particular property. Then make sure the agent puts you on their list. Give them your Selbstauskunft and Bonitätsnachweis and a summary of your property requirements.

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