Hi,

I am looking at property in Leipzig and believe the fundamentals are in place to create capital value growth over the next 5-7 years. I like an educated work force at low wages coupled with high unemployment and high vacancies... it seems the city might be right for a turnaround. Please correct me if you think I am not seeing the whole picture.

Has anyone financed property in Leipzig? Which banks are the best to use and what type of LTV's should I expect?

Also, do you know anyone with a property portfolio that would like to sell it?

Ryan

Liepzig has lots of potential but buying the correct property is key. I would start with older character but recently renovated property well located.

Some of us here including myself have bought blocks of flats, but beware it is not a walk in the park - the rules and regulations can be pretty onerous & complex. I have said in the past I will consider taking a 'free' equity share in return for joining someone else's venture should they think it appropriate. I have a good contact (dealt with him over 2 years) for repossessed blocks - but you need big bollogs to buy these. I bought one of these. Sure the yields can be fantastic (20% not at all uncommon) BUT, all you get is a piccie with a few details*. Almost no buyer visits the offers as there often is no time and no one WILLING to show you round. This suits me fine but I find most others want all the boxes ticked so auctions often are'nt for them.
*Having said this there is often a full German report with each block which has a lot of detail about tenants and an official valuation but there still remain many unaswered questions such as 'can I let the empty units', 'what is local demand like' 'how much to fix the place' - you just wont get answers to such questions. The German dealers have no time for English time vampires armed with Which magazines. Put yourself in thier position: would you want to deal with a) a German cash buyer who makes on the spot snap decsions AND SEES IT THROUGH TO COMPLETION or some ******** English fella with long lists of dreary 'petty' questions that will probably not have the where with all to actually buy at auction?

So auctions can be opaque and a bit frustrating but worthwhile IMO - just avoid anything falling down or made of conrete which might need £200k of improvements.

Finance in Germany is very cumbersome for us foreigners. Even with the help of a good broker I find it a real hassle.
For blocks of flats you might get 70% but 60% is more likely if you are lucky! Better to buy cash and then refinance at leisure.

As Dogbox says - The auctions are not for the faint hearted, the amateurs or the dreamers. Get it all right and you will not be disappointed with a purchase anywhere in Saxony, get it wrong and it will lead you to emptying your bank account faster than a wino on the war memorial can empty his white lightning.
My advice would be to avoid the auctions unless you have someone who knows what thay are doing.

Contact Saxony Properties Service on 01526 527666. They have access to any amount of apartments in Dresden and Leipzig and have an in to the latest finance available - I've spent some time making that happen for them.

Don't be scared by the age of the flats - go for how much it's going to cost you to bring them up to spec. Avoid denkmal properties unless you have a local to advise you - again talk to SPS they have a projects manager as one of their directors, he lives near Dresden. I've met him many times and wouldn't get any repairs done without running it past him first. If he tells you to forget about a certain property and walk away I suggest you listen carefully -he's probably trying to stop you losing your shirt.
Leipzig and Dresden are not get rich quick cities. Middle to long term investments only. What is has over most other investment spots is that it is only just coming onto the radar and being Germany is safe and about as guaranteed as it gets in this business.

If you have read the posts here on this forum you will have noticed that I spend most of the year in my Dresden pile and travel out from there to a couple of other bolt holes I have. I am in retirement and only deal for myself nowadays.

I don't think you will be disappointed in your German ventures but as in any other investment it is caveat pre emptor - get local advice, do your research and be absolutely certain why you are investing and what you want in return. Good luck

Ryan,
I spent an hour with the MD of a company specializing in your area of interest this morning. I put your question about portfolios to him. He has several investors asking for portfolios of Dresden/Leipzig and the surrounding towns. Tel 01527 406982 and let them know what it is you have in mind, they can design a portfolio around your requirements.
It's unlikely they can't cater for your needs but in that unlikely event contact me here as I have a filofax of contacts who would be willing to help. Sorry but I'm no longer active or I'd do it for you myself. It's a beautiful area with a bright future.
BTW Finance for non-Germans at much improved rates than are currently being offered is only about 6-10 weeks away - I have spoken to the people putting the products together. The number I've given you will be in a position to offer that advice when the products are launched - in the meantime they will only be able to tell you what I have told you here - I know because I sourced it all for them.

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