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the agenda eh12

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  1. Well this will be my last entry on this forum. Time has moved on. Even the Agenda no longer exists as it is now a Witherspoons. I was over in Berlin in August. I met OS and Ax. Hausgeld was explained to me - it turns out that the tenant pays most of it. I should have sussed that myself but every time I read hausgeld I just saw red. My tenant has been in the property since 1993. And from what I gather no modernisation work has taken place since that date as it is simply not worth it because the tenants rent is locked in to a rent register from the date they move in. The rent register is updated every 2 years and rents are held in check so they actually lag the transcient rental market by a considerable amount. When the tenant moves out it will cost approx 18k E to modernise at todays costs. So basically what we have all bought are council houses stuck in a 1993 time warp. I had a good look around Rubenstrasse. Its a nicer area than I remember. I even went for a beer in a local bar. The most sensible thing I have done in this whole experience is only lock myself into a 5 year fixed rate mortgage. So since the 5 years are nearly up, OS got the bank to rescheduled my big mortgage. He organised for the bank to use my modernisation bond to reduce my small mortgage and I put 4.5k E into the deal to pay it off. The result of all this is I start to run at a small profit from Dec. Yippee!! In closing, OS is worth his weight in gold. Anybody who does not use him needs their looked at. Happy property investing guys and gals. Goodbye and good luck.
  2. Dear all, Apologies for the delay in getting back to you all. To be part of the voting block we all need to have two things in common: an apartment in Rubenstrasse and the letting agent has to be Axium. (I suppose if you have another letting agent for your Rubenstrasse apartment you could email then instead.) I reckon the annual hausgeld meeting is at the end of this month. Normally Axium give just a days notice of the meeting. So my plan is we all email on approximately the same day before the meeting. To give everybody time to revisit t his website I propose we email axium next Wednesday 20 June or Thursday 21 June. What I would like to achieve is a reduction in hausgeld by at least 40E. This would take monthly hausgeld down to approx 200E. At this time I do not think it is feasible to get hausgeld down any further. So my email to axium will contain instructions not to vote for any increase in hausgeld and to target various unspecified costs which will mean hausgeld is reduced to approx 200E. I am not sure how you all feel about this…so feedback would be much appreciated. Axium details are as follows: Steffen.Adebahr @ axium.de Use your initiatiative on how to construct his email address. I will be back on this website againat the weekend to see the feedback. Keith
  3. Just checked my emails for 2011: Axium contacted me on 26 June 2012 about the Rubenstrasse hausgeld committee meeting of 27 June 2011. So it stands to reason that the next meeting is in late June 2012. Keith
  4. Welcome robbie 1. You have just increased the voting block by 50%!! All we need is pipeslice to get back in contact again. Housepricecrash do not make it easy to get in contact with each other so, please, let use this site for the time being. No need to get our hosts hackles up! Keith
  5. Hi pipeslice, We are not much of a voting block given that there are only 2 of us in nearly a month of my posting. You need to have a property in rubenstrasse, then we have a common cause. So when axium attend the annual rubenstrasse committee meeting they go along and say we have 2 votes against any more hausgeld rises. In fact I would go for a reduction in hausgeld (60 euro per month rise in 2 years - what do they spend the money on?!!) Get back to me on what you think. I will make sure I visit this site again within te next week.
  6. Not sure how many people still visit this forum given the date of the last entry. I am now with axium and am looking to establish a voting block to make sure that the hausgeld is reduced at the next rubenstrasse meeting. If you are interested in forming a voting block please leave feedback.
  7. Hi Pippy, Your entry has some specifics missing, but I think I am further along the road compared to you with this dog-with-fleas investment as it only (!!) cost me 2200E compared to your 5000E in 2010. Have you left Dr O, for example? You need to read my entry of 18 Aug. For me the biggest issue is Hausgeld as it went up 40E in Nov and I cannot pass this on to the tenant. Haulsgeld is now costing 225E per month. That’s at lot of money to keep the communal areas up to scratch and it also costs me more euros to prop the mortgage payments up. My lender All is intransigent to my requests to reduce my monthly payments even though the outstanding debt was reduced by 8k by Dr O when I parted company with them. Regarding property value I to own in Rub and have just completed a value survey. Take a seat… From the results I have I would say that if your property is located on the Grazer Damm side of highway 103 between 60-75k E. If you are on the Innbrucker Platz side of hightway 103 75-85k E. If your property is on the city centre side of Innsbrucker Platz it will be worth more. Basically, the closer your property is to the centre of the city, the higher it value. Regarding your mortgage, if it is fixed, it goes without saying, there will be penalties. Keith
  8. Dear all, Since my last scried on 6 Feb, OS has proved to be worth his weight in gold. He is attentive, well connected to resolve any issues and responds quickly to my many emails. I must also apologize to Dericag for not replying to his question of 8 Feb. Hopefully, I can answer it in the next few paragraphs. I would have written sooner but for my decision to leave Dr O. I wanted to wait until the relationship was fully dissolved. Why? Well in my opinion Dr O is a bit like the Titanic – not enough lifeboats to go round once it was holed below the waterline and started to sink. I just wanted to make sure I was on one of the lifeboats. I have now officially left Dr O. Phew!!! I got all my guarantees back – well Alli did – and my mortgage debt has been reduced accordingly. I even got some of the rent arrears back from Dr O. OS reckoned it was 30 cents in the Euro. I didn’t even bother to calculate it. All I know is it paid the solicitor bill and 270E was deposited into my account. I have filed my accounts for 2009 with my new OS recommended accountant. He reckons that I am due some purchase land tax back cause the guarantees should now be discounted from the purchase calculation. I will wait with fingers crossed on this one. Maybe now is the time to reflect on the Berlin purchase. Along the purchase route I lost sight of what I was doing. Any sane person should have asked how much the tenant was paying. If I had found out that the property manager receives 270E per month (after 188E Hausgeld deduction!!!) from the tenant and pays out 370E per month to the owner and then does this for 10 years I am sure I would have sussed out the problems. I cant be the only one that sees something wrong with this business plan? For Dr O to survive they had to continue to sell property. We have all been suckered by a type of pyramid scheme, except this time instead of Bernie Madoff investments it was Macanthony Realty Internationals Berlin social housing scheme. I just wish I had spent an extra day in Berlin and had done a bit more independant research on the QT. We live and learn. However, I would like to finish this epistle on a more positive note. Over the past 18 months I have come thru troubled times which were not of my making. Thanks to OS the situation is gradually being sorted. The problems this year are less than last year and next year will be less than this year. I have an investment in the capital of the largest economy in the EU. It may not be the Ritz, but it is a nice flat occupied by a tenant who pays the rent. It has still to be modernized, but there is 5k in place to pay for that. I am not too sure how much modernisation can actually be done with 5k, but its still 5k going into my investment. I wish the rest of the contributors to this site, best wishes for the future. Keith
  9. Dear all, Since my last scried on 10 Jan I have paid for OS to be my agency of service. OS has confirmed that K did not pay the rent in Nov. I suspect K is Dr O in disguise and each time their cash flow becomes a real problem they dont pay us rent. Now OS and me are pals I have finally got my mortgage provider alli off my back. OS has recommended a new accountant for my 2009 return and they are costing under 300E. This is a saving 400E on the Irish company, recommended by CFP, which I used last year cause they charged me 700E. So the OS bill has paid for itself already. I've had to prop up my mortgage account by transferring 500E to alli. At least the £ has strengthened a bit against the E so it did not cost me as much in £ terms. Dericag - thanks or the info. I dont understand your 7% rent/property value calculation, but hey-ho such is life. I see you are talking about cost per metre. I am not used to this type of calc. I think my pad is 70m2 and it cost me 101k E. I am not sure of its value now and see no point worrying about it until the chains come off my alli mortgage in 2012. Besides I have enough problems trying to get the property to break even right now without worrying about taking a hit on its market value. Keith
  10. Thought I would give you all another update. I am still not sure what is happening about the rent. I spent over £40 in the last couple of weeks phoning German and listening to answerphone messages and unanswered phones. It does not take a genious to work out that with this sort of cost and with no result, Oleg S services suddenly look attractive. So I am in the process of using him as my Agency of Service for 150E + VAT. That will at least get Alli of my back. The little bit of info he has given me includes the following: 1. It looks like I am going to have to hire the services of PS again - or maybe the solicitor Oleg S recommends. 2. Even though I've been paid off with the rental guarantee bond Dr O are still collecting the rent. 3. Oleg S also mentions the maintenance guarantee (not modernisation guarantee). Has anybody got any info on this one? Message for Newton - I am due you an apology as I've just discovered 20-22E per month is about the going rate property management companies charge. Sorry I doubted your wisdom! Dericag - have you left Dr O yet and if you have who is your new property management company? Keith
  11. ps, Newton... Whilst I hope your management company research works out, I just dont see it as viable for any company to only charge 15E per month. In Edinburgh the standard charge is 12.5%-15% per month of the rental..
  12. Dear All, Apologies for not inputting any info since 18 Sept. For some odd reason I cant log onto this website at work and I always found an excuse when at home not to visit the website. However, this week has proved to be fairly eventful so I've spent the last hour reading other peoples input. Since my last scried on 18 Sept the following has happened: 1. I received rent for Sept and Oct. 2. The German tax authorities have accepted my tax return and have accepted that I run at a loss for 2008 - wait until they see the tax retun for 2009!! 3. In late sept we accepted Dr O/Alli offer to break the rental contract and we would receive the 3872E which Alli would use to reduce the outstanding mortgage. 4. (Where does Alli get the idea that CFP are my POA) In early Nov Alli employee (Gormann-Ernst, Irmtraud) sent me a threatening email saying I had to get OS to be my POA. I sent a reply emailing telling her to take a hike. 5. Then it all went quite until this week. 6. Received Alli bank statement and discovered November did not exist.: no rent payment and no mortgage payment. 7. Received letter from Alli about 3872E, so it looks like movement on that front. My partner is currently getting the letter translated. 8. Received another letter from another doctor (there seems to be a lot of them in Germany), J Grote, who wants to be my POA. His spiel was not on letterhead paper and it was not signed. For the time being I intend to ignore this bloke. 9. Yesterday I got a threatening letter from Alli about not paying the mortgage. I can only assume that I have not received rent for Nov and Dec. I will phone them on Monday to find out what is happening. Dericag, I am please the situation is working out for you. How are you getting on with the modernisation bond? Right now, I am off to the Agenda for a beer and to chill out. Then I've got tickets to see Avatar. Maybe watching something in 3D will make me see things more clearly. Keith
  13. Hey Maximum, How are you doing? Since my last scried of 2 Sept, I can confirm that since April I have received 3 rental payments: 2 from Dr O and one from K. (There also seems to be a lot of vultures flying around looking for easy pickings, eg, OS and Pable S - if you were to pay these fees there is not be much change out of £1500 right now, without any visible signs of payback.) Dr O have subsequesntly sent me a proposal to pay off the rental guarantee bond of 3800 E and the rent starts getting paid from Sept. I intend to accept this and by my calc the monthly mortgage drops by approx 35E. It does not sort out the loss making situation but at least it reduces the monthly loss. And with Allianz agreeing the proposal it gives me some faith that I am making the right decision. I also intend to find out about the 5000E bond for modernisation. I am not sure how to play this one yet but will keep you posted. Keith
  14. Since my last contribution to this thread nearly a month has passed and this is what has happened: I have received reduced rent of 240E from K in July. OS informed me that the actual rent Dr O received was 304E per month. OS informed me that the rent bond now stood at 3700E approx. OS informed me that Alli would not repay the rent bond as it was a guarantee against me not supporting the mortgage now that the rent was 150E less than my monthly mortgage. I have identified that I bought a silver mortgage membership with CFP and they do not have any POA. CFP recommended an Irish company to file a tax return and they have had their calculation accepted by the Germans. This company have been fairly efficient, if expensive. I have discovered that Alli gave a golden hello of 75E to me and deposited this into a sub account. For the time being I decided not to go with OS new management company, which would provide translation and accountancy services. Have successfully written a letter in German and managed to close the sub account with 75E in it and transfer the money to my main mortgage account. I have transferred 750E to my mortgage account. If K keeps on paying rent at current levels this should keep my mortgage account propped up until Jan/Feb 10. Yesterday I received a letter from my solicitor Ule touting for business. They want to go after the rent bond. I just dont see Alli - see italics comment above - paying up. One final thing. We, and that includes me, are all guilty of not doing due diligence. MRI made it easy. I never even saw inside my flat. They drove me to the solicitor, notary etc. What I should have done was spend another day in Berlin looking at rents in Rubenstrasse before making the decision. If I had spent time identifying rents to be approx 300E per month and Dr O was paying 370E per month I would have backed off the deal. But as the saying goes, a degree in hindsight is not of much use.
  15. Hi, Just found this site. I am not alone!!! Having just read thru 9 pages of input, I seem to have been the only one to comment on the depreciating value of the rent bond. I got in contact with OS tonight about it and I sent him the following scried. Dear OS, As the person who is helping Alli and UK citizens like myself understand the situation we find ourselves in, can you please forward the following text to Alli. *************************************** After again reading the 10 year guarantee rental contract and also the recently received letter from Dr O it is apparent to me that Dr O continue to draw down money on a monthly basis from the 10 year rent bond. The reason for this statement is according to the recent Dr O letter the value on the 10 year rent bond is 3587.44E. This figure works out as 78.75% of the original 4555.32E bond value, or 8 years 7 months. So this means that Dr Ol has taken 17 months money from the original bond (I bought the property in February 2008). THIS MONTHLY DRAW DOWN HAS TO STOP AND THE MONEY MUST BE USED TO SUPPORT THE RENTAL INCOME GIVEN TO THE OWNERS. So my proposal to Alli is that they use the 58.94E which Dr O currently draws down from the 10 year rent bond on a monthly basis and they use this money along with the new rent of 227.40E, currently being received by myself, to help pay off the monthly mortgage. If Alli agree to this proposal I will ensure that enough money is moved into the account to ensure that the mortgage is paid each month. Can you please forward this proposal to Alli - I await their response with interest. Regards, ************************************** So this is my opening comment. What do you guys think? Has anybody else spotted this or have I got the wrong end of the stick? Please advise.
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