In society today, real estate is generally considered to be the best form of investment. This is because land is known to always increase in value. The value of land varies in different locations around the world with some places having more value than others but no matter the location, the land remains a valuable asset.
Particularly, Germany is an excellent choice when investing in real estate and this is known all over the world. If you are considering moving to Germany, this guide will benefit you.
Why Should You Buy A Property in Germany?
With about 52% of Germany’s population going for rental accommodation, homeownership rates in Germany are quite low. This is a good thing however for prospective buyers as it creates a form of stability and balance in the real estate and property market. While searching for a house, some important things are considered in order to get optimal satisfaction.
Germany, a major force in not just Europe but in the world, is a preferred choice for numerous travelers and settlers today. Germany is home to some of the most fascinating cities in the world like Frankfurt, Munich, Berlin, Stuttgart, etc. but one city which stands out is Berlin, the capital and economic hub of the country.
Here are some very good reasons to buy a house in the German capital.
It is Relatively Cheap
Berlin is one of the cheapest capitals to live in Western Europe. With Berlin often compared to cities like Paris, Amsterdam, and London, buying a house there is surprisingly cheaper than expected and this is very important in saving some euros for other things. The food and public transport is also cheap and very satisfying as well. In a city where beer is cheaper than water, what’s not worth loving about that?
English is Widely Spoken
English is spoken exceptionally well by most Berliners and this is very handy considering how difficult it is to master more than the basics of German. One interesting thing is how many Berliners will easily switch to English once they see you struggling to make sentences or in expressing yourself in German. For people moving in from English-speaking countries like The US, Australia, and The UK, this is a major breather. It won’t be difficult to blend into the country.
Excellent Public Transport
Every corner of Berlin is connected irrespective of where you live and this makes it very easy to get around. As a matter of fact, you won’t need a car in Berlin unlike in places like Australia where owning a car is unavoidable. The entire public transport of Berlin is top-notch, efficient, reliable, and also very affordable. It is also important to state that the trains in Berlin operate 24/7, all night, even on weekends.
It’s a Fun City
Recently, the Telegraph Magazine named Berlin the ‘most fun’ city in the world. This phenomenal city boasts of the best and most renowned nightlife in the world. It also has some of the best nightclubs in the world located in the most unique places. Berlin is also a prominent center for electronic music and football; the most accepted and practiced sport in Western Europe. From parks to beaches, karaoke spots to extreme infrastructures, Berlin has something for everyone and they mean it literally.
A City for Everyone
Berlin is a haven for subcultures and minorities in Europe. Whether you’re white, black, gay, or disabled, Berlin is non-conformist and non-judgmental. This city has grown to become a major target for migrants seeking freedom of expression and acceptance. This is why many students from around the world crave education in Berlin.
The Property Market of Berlin
According to Knight Frank, a property consultancy, the prices of houses in Berlin increased by 20.5% in 2017. This makes the Berlin property market the fastest moving city market on Earth. Generally, the Berlin property market is stable and reliable, making it a very good investment for local and overseas investors. Also, there are absolutely no forms of restrictions to foreigners purchasing properties in Germany. Even without being a residence of Germany or any region in the EU, you can comfortably buy a property in Berlin.
Finding a Property in Berlin
Properties in the German capital are either sold privately or through an estate agent. Just like in most European cities, properties in Berlin are advertised solely with the media. Adverts are made in newspapers but one very sure and readily available means is through estate agency websites and online portals. Main German platforms to find properties in Berlin and Germany are :
Please, note that those platform sites offer only listings in German. If you are not fluent in German, you can visit some websites of international estate agents like First Citiz Berlin properties that have property listings in foreign languages such as English and French.
Otherwise, most Germans tend to purchase properties and live in them for life or for an extended period of time, so it is very important to take your time when considering buying a house and not rush into purchasing one. To find your preferred German property, it is important to give yourself as much time as possible and not settle for less.
There are certain legal requirements houses in Germany have to meet before they can be put up for sale, rent, or even constructed. The windows, roofing, fire safety, heating, and some other utilities are considered to have to meet certain standards before they can be put on the lease. With this, a full structural survey is very important so as to outline any problems associated with a property. A surveyor or an architect can be hired to do this survey. More information should be given to you regarding all of these requirements before purchasing.
Cost of Buying a Property in Berlin
In a typical property purchasing scheme, the seller pays the estate agent for a property and the ownership is automatically transferred to the buyer. There is more to that anyway. 10% of the cost to get a property goes to taxes and fees. Property transfer taxes take between 6-6.5%, notary fees between 1-1.5%, and estate agent fees take about 3% including VAT of 19%.
Prices of houses in Berlin vary with industrial concentration as well as location. Whether as a student, a single person, a family person, or just an investor, the price of properties in Berlin is generally fair when compared to other major cities of Western Europe.