Hello everyone!

I'm new to the forum, but have noticed lots of talk about Berlin here. Even on the internet and in newspapers there's lots of hype about the market and as an investor that led me to investigate the market further.

From research that i did, i found that it seems like a good long term prospect. I contacted a company called Berlin Capital Investments who gave me some insight into the market and i found that they were real experts in the market. They were able to answer all the questions i had. I decided to take a trip to Berlin (as i'd not been in sometime) to meet with them to see potential properties.

I found again that they were very knowledgable on the city and had excellent reasons for investing in Berlin. We went to see their properties and i decided to invest in their Sternstrasse opportunity. I had visited a couple of other agents, but found them to be very pushy and were not able to answer my questions as Berlin Capital did.

I think i've certainly got an excellent deal, better than anything i had seen with other agents. So if you are looking to invest i would recommend speaking with Berlin Capital Investment www.berlin-capital.com

What mortgage LTV did you get?

Sounds almost like an advertisment.

Having been in Berlin 4-5 times on viewing trips I never found any german agent to be pushy. What Berlin Capital does well is take the hassle out of property buying in Berlin for UK and Irish investors.

I got 55% LTV

I've just completed on my appartment pruchased through Berlin Capital and got a 70% LTV with DSL bank.

Hi Swordfishblue,

Are you able to give a few more details?

Perhaps Rental, Yield, Location, Size & sq m, Price

I'm interested in Germany - there are some investment bargains out there eg German Properties but It's difficult to know where to start!

Thanks

M21er

I'm about to move to Berlin, so quite interested in the German market, although I'll be renting for a while at least. Unusually, the German property market doesn't appear to have had any real-terms boom at all, according to a land registry survey. I may well buy in Berlin, but since I'm moving there, not investng, it'll be a year down the line at least while I find my feet.

In terms of buying as an investment, it's worth bearing in mind that Berlin is a pretty poor city, with high unemployment. I hear that it has had a lot of government subsidy but essentially whilst it's cheap compared to England there is much less scope for capital appreciation and therefore you must make sure that you can achieve a good yield on your investment. Rents in Berlin are correspondingly low compared to the UK and are subject to rent controls.

It's also worth noting that the German letting market is much more regulated in general than the UK one and leans much more in favour of the tenant. Tenants actually still have rights in Germany! If you're buying a flat - most places I have seen in central Berlin are purpose built apartment blocks - it's worth finding out if you are going to get hit for the communal service charges. If a roof needs replacing for instance, then all owners of flats in a block are compulsorily liable, which can cost tens of thousands of euros. Another thing, that you've likely already discovered is that LTVs are much lower in German mortgages. You will often need 30 - 40% deposit.

So there are reasons why Berlin property appears so cheap. They're some of the same reasons that make Berlin a very cool and cultural city - it hasn't been in the grip of a turbo charged form of capitalism in quite the same way as capital cities like Paris or London. It's one of the reasons I'm moving there.

As a long term investment, it's probably a good idea. Berlin is a great city and has huge long term cultural and geographical potential, but if you're looking to make a quick or easy buck, it might be worth looking elsewhere.

You raise some valid points as there are reasons why Berlin property is so cheap.But to keep things in perspective, the Berlin rent controls you mention are the same as those in Munich, Hamburg etc where rents and prices are more than double those of Berlin. And may be Berlin is a pretty poor city by German standards but still has a GDP of ca $30k per person so more than four times more than most eastern European cities where ironically purchase prices are higher.

There are a lot of people moving to the city as yourself and employment has been dropping steadily. The new airport opening in 2011 is likely to have a greater impact than most think if the city follows the same trends as others with such hugh infrastructure projects. Judging by the office of national statistics which quoted price growth of ca 8% in 2007 and number of cranes that are appearing again all over the centre, it looks like the property market has regained its momentum.

As ever I cannot claim to be neutral, as i work for a property company (www.berlinprofile.com) but I did study and work in urban regeneration and many of the signs of a healthy market both in property and economically are more than evident. Maybe people should hold off buying until you have got your foot on the market.

It's good to hear that Berlin might be picking up - it deserves to as a city as it has great infrastructure and is ideally located in the centre of the post-2004 expanded EU. The reunification hype never really materialised somehow yet it has great potential as a city - it's the only European capital that isn't wildly overpriced and expensive although that' probably because it's not really a capital in the Paris / London sense since Germany is so federalised.

It would be great if the city council there would consider some investment incentives for businesses e.g. lower tax rates or tax breaks for businesses employing x number of people. All it needs is a push and it could really take off.

German government voted unanimously in January this year to reduce corporation tax from 25%- 15%. This is not yet law but will be soon. Before now Germany had among the highest company tax in Europe and many Germany companies setup HQ outside Germany to pay less tax. Things are slowly getting better.