I recently purchased a flat in Berlin and was looking at another potential investment in Munich or Prague. I have visited a Prague def. a great destination but am not sure about investment potential. Does anyone have any advice?
Having already bought in Berlin I thought I would try a different German city. Munich is the most prosperous area of Germany has the lowest unemployment after Baden-Wurtemberg and is where most of the business is concentrated. Other than that set in the alps its a great tourist destination.
I speak fluent German so the language barrier is not a problem. I did not find buying in Germany hard yes it can be a bit bureaucratic but it shouldnt put the investor off. I would not buy a second property in Berlin because I believe Munich maybe a better investment however it is significantly more expensive than Berlin but then wages in Bavaria are much higher too.
I have no knowledge of the Czech or Prague markets and wondered if anyone could help me out with Prague. In return I can give advice on Berlin and Germany in general. Berlin property market seems to be very foreigner driven. In the appartement block I bought most of the flats they sold were sold to foreigners.

Advice Appreciated

Julian10

Persoanly I am still on the look out for another Berlin property. The locals are starting to join the property party on the back of foreign lead activity. Berlin is Europes second biggest urban conurbation and employment is rising and a shortage of properties is predicted now as building slowed after the crash yet more and more people are living as singles - sound familiar!

Add to this the mortgage evolution & deregulation (Barclays I hear have entered this market) plus the fact people are turning back on traditional pensions (sound familiar?) and the fact its relatively safe investing.

Ownership in Munich I think is about 70%. Berlin is just 17% I think, so a huge amount of potential.

New airport underway and the state selling off its social housing stock (sound familiar?).

Im particularly keeping an eye on ultra cheap repos - often unloved dirt pits just outside Berlin.

Did explore buying with others but everyone has a different opinion on property to target so it becomes a bore.

You do not understand zip of Germany...

40% in Berlin barely have money from one month to another. Besides, people in Germany do not have the ownership mentality.

Manchester - 1995, depopulation, 28% unemployment, run down, low ownership proportion, then what happened.

Rondy I like to invest before anyone else does and I recognise the Human spirit will rise after a prolonged period of gloom.

Lets see what happens in the next 10 years. I guarantee Berlin will rise from the ashes.

Don't worry, investment in Berlin has been going on for long time. You and other Brits "investors" discovered it recently.
The good deals in Berlin has been had already.

I bought some land near Potsdamer Platz many years ago and sold it for a good profit.

By this are you suggesting there is no more profit to be had from that property now or in the future?
As for Germans owning their property - slowly but surely they are going to have no choice. Social housing will eventually be on a par with the UK. Incentives are being both considered and put in place to encourage greater ownership. Germans will have the best motive of all to purchase properties it will be called no choice.
Dresden sold off 45.000+ of its social housing to an American investment company. Therefore less social housing = rentals = people realizing it is better to own than rent. Do you really think this American company is doing this because of the benevelance of the chairman of the board or is it because this company with some of the best financial whizz kids available has decided there is a profit to be made - which is it?

To answer another asked here. Other German cities offering good potential returns are Dresden, Leipzig and Chemnitz. THERE IS AN OVER SUPPLY IN SOME AREAS OF Germany make no mistake about that. Just as there are oversupply problems in most cities of the world. Nothing to lose too much sleep over though. Renters are there, you may have to wait a little longer to find them or advertize a little smarter but they are there if you price it right. It is the potential for capital growth which most interests me and possibly something you should factor in.
100k is not going to buy you much in many areas of Germany in the NE cities it will get you many smarties indeed.
I have a ready supply of Berlin apartments and have access to apartments in many other areas of Germany - in particular the eastern cities. Feel free to contact me and I'll almost certainly be able to help you or know someone who can.