Buying property in Germany

289 posts in this topic

I am under no requirement to answer any questions.  You should be happy that I am responding at all.  It seems everyone else is ignoring you.

 

There is an easy way to prove me wrong.  Go and buy a 4 flat building in Munich with "money you have laying around" during a lockdown and rent it out for 2400€ and let us all know how it goes.  Since you are such an expert in real estate, that should be easy enough for you. 

 

In the meantime, I will invest 50k in the stock market and we will see who does better.

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You are the one that pulled a 4 flat house in munich out of your arse!!   Not me...

 

You are the one who banded 4 million€ about the place....      

 

I assume that you havent bought or cant afford to buy a house, maybe thats why you are pissed off!!

 

https://www.ebay-kleinanzeigen.de/s-anzeige/gut-vermietete-kapitalanlage-mit-viel-potenzial-mehrfamilienhaus-mit-4-wohneinheiten/1321979238-208-4919

 

Within sensible driving distance to Wiesbaden Army base... They get a living quaters allowance that is either spent on housing or lost!... Thats why Rental flats are expensive in Wiesbaden

 

 

Who needs 4 million?   

 

 

 

 

 

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1 hour ago, SpiderPig said:

You are the one that pulled a 4 flat house in munich out of your arse!!   Not me...

21 hours ago, SpiderPig said:

Lets just say for example, I buy a house in Munich with 4 flats

Sorry that I assumed that you meant what you said.

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21 hours ago, SpiderPig said:

You are assuming people are borrowing money to buy property... 

 

Lets just say for example, I buy a house in Munich with 4 flats...   I dont need a mortgage as I buy them with cash thats sitting in the bank,

 

Tennants have a contract with the utility providers... but they reduce my Rent from 900e per month cold to 300€ per month.. 

 

That still means the House brings me 1200€ per month and not the 3600... 

 

Am I losing money or still bringing it in?

 

Bradley... I gave you  an "example"... a senario and  to took in seriously...  It was about owning a property outright and demontrating that reducing the rent from 900€ to 300€ would still mean that I turned a profit.. granted not as much as the full rent would bring me... but non the less, a profit... 

 

 

 

 

 

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2 hours ago, BradinBayern said:

Most experts agree that real estate has been in a bubble for some time.  It most certainly will pop after this crisis. It is just a question of how much.  While it is true that real estate does increase in value over longer periods of time, it still would have been a bad idea to buy at the top of the market in 2006 when you saw the crash coming.

 

Not sure why the property bubble will burst over this virus, I mean Germany has a very low death rate and its support the companys, sure there is going to be a down turn, but it really be big enough to crash the housing market ?

 

maybe claify your thinking on this 

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9 minutes ago, SpiderPig said:

 

Bradley... I gave you  an "example"... a senario and  to took in seriously...  It was about owning a property outright and demontrating that reducing the rent from 900€ to 300€ would still mean that I turned a profit.. granted not as much as the full rent would bring me... but non the less, a profit... 

 

 

 

 

 

Yeah, and I responded to your example and said it ws full of shit.  Then you claimed that you never said that what you said...

Are you drunk?

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41 minutes ago, SpiderPig said:

you are begining to sound like YL6... he was also never wrong...  

Not sure even what you are trying to say that I am wrong about, but OK.  Let's take your other example:  so you buy the house for 495,000€ Your Nebenkosten (Taxes, Notary, etc) will run you an additional 60k.  So now we are at about 555k.Calculate the running costs at about 2 €/ square meter (this is an average and probably not enough since the house is from 1965, but for argument's sake we will leave it there).  Now the ad says that the house is currently rented at 21.180€ per annum.

 

Plug that all into the Netto Mietrendite Calculator and we get roughly 2.5% which is a bit lower than the 3% minimum that you should be looking for during normal times.  Of course these are not normal times for all the reasons that I have described. 

 

Now we will add in your assumption that the rent drops by one third.  Now instead of  21.180€ we will get roughly 7k.  Now you are looking at a return of -0.05%

 

So to answer your question - No, you would not be making a profit.

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But you dont know how much Living quarter allowance the Millitary pay... 

 

For that house, I know that I would get a Military tennat in there for 1800€ per month...  The only thing I would need to supply is a Kitchen.. 

Tennant pays utilities or I could increase the rent to cover them...   

 

as for a return of -0.05%...   does that mean I would have to give them each a tenner every month?  

 

You clearly have no idea... you are a Mini Melga with online calculators and no real grip on life...   

 

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2 minutes ago, SpiderPig said:

But you dont know how much Living quarter allowance the Millitary pay... 

 

For that house, I know that I would get a Military tennat in there for 1800€ per month...  The only thing I would need to supply is a Kitchen.. 

Tennant pays utilities or I could increase the rent to cover them...   

 

as for a return of -0.05%...   does that mean I would have to give them each a tenner every month?  

 

You clearly have no idea... you are a Mini Melga with online calculators and no real grip on life...   

 

I am going by what the ad says, not your fantasies.  Since he property is fully rented, do you intend to throw out one of the current renters for a military "tennat"?  You know that you can't just do that, right? You also do realize that there are limits to how much you can raise the rents in Germany? 

 

Also what happened to your scenario where rents drop by a third due to the crisis?  Are you going to claim you never said that too?

 

Geez, I wouldn't trust you to buy me a sandwich, not to mention an investment property.

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25 minutes ago, SpiderPig said:

as for a return of -0.05%...   does that mean I would have to give them each a tenner every month? 

No that means that your operating costs would exceed your income.  Business 101.  

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51 minutes ago, BradinBayern said:

Not sure even what you are trying to say that I am wrong about, but OK.  Let's take your other example:  so you buy the house for 495,000€ Your Nebenkosten (Taxes, Notary, etc) will run you an additional 60k.  So now we are at about 555k.Calculate the running costs at about 2 €/ square meter (this is an average and probably not enough since the house is from 1965, but for argument's sake we will leave it there).  Now the ad says that the house is currently rented at 21.180€ per annum.

 

Plug that all into the Netto Mietrendite Calculator and we get roughly 2.5% which is a bit lower than the 3% minimum that you should be looking for during normal times.  Of course these are not normal times for all the reasons that I have described. 

 

Now we will add in your assumption that the rent drops by one third.  Now instead of  21.180€ we will get roughly 7k.  Now you are looking at a return of -0.05%

 

So to answer your question - No, you would not be making a profit.

since when has 21k Minus one third been 7k?

 

Your words... not mine!

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34 minutes ago, SpiderPig said:

Like I said.. you dont know the property market...

 

http://wiesbaden.bookoo.com/i/71511193

 

http://wiesbaden.bookoo.com/i/72780952

 

http://wiesbaden.bookoo.com/i/72464994

 

Looks like I am not the only one with fantasies... 

Wow those goal post are on turbo! You went from a 4 flat MFH in Munich renting at 2400€ to houses in downtown Wiesbaden?  What is that supposed to prove?  Do you have the price to buy any of those houses?  Sure there are luxury homes in the world that can attract high rents.  Of course when there is not a global pandemic going on. So?  Point?

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37 minutes ago, BradinBayern said:

 

 You also do realize that there are limits to how much you can raise the rents in Germany? 

 

 

 

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10 minutes ago, SpiderPig said:

since when has 21k Minus one third been 7k?

 

Your words... not mine!

*Sigh*

On 2.4.2020, 21:34:16, SpiderPig said:

but they reduce my Rent from 900e per month cold to 300€ per month.. 

 900/3= 300

21000/3= 7000

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