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Fueling The International Property Boom

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Im off to Berlin next Monday as a heroic pioneer into the hitherton unexplored Berlin property market.

Turns out Im not a Pioneer, a B2L freind tells me a couple of his B2L aquaintances have recently bought apparments in Berlin.

Dr Bubb must think me foolhardy, but I cant wait to get stuck in.

Before anyone accuses me of being a Rockerfella (as oft' happens on here), Im certainly not.

Im simply someone trying to improve his lot by taking a few risks.

Think Ill stick to land as I cant be ars3d with German tennants, although Im undecided.

Yield isnt of any concern, Im looking for huge capital gains. Lets see what happens in the next 5 years.

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Im off to Berlin next Monday as a heroic pioneer into the hitherton unexplored Berlin property market.

Turns out Im not a Pioneer, a B2L freind tells me a couple of his B2L aquaintances have recently bought apparments in Berlin.

Dr Bubb must think me foolhardy, but I cant wait to get stuck in.

Before anyone accuses me of being a Rockerfella (as oft' happens on here), Im certainly not.

Im simply someone trying to improve his lot by taking a few risks.

Think Ill stick to land as I cant be ars3d with German tennants, although Im undecided.

Yield isnt of any concern, Im looking for huge capital gains. Lets see what happens in the next 5 years.

Viel Gluck!

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Good luck. Money week is constantly going on about how cheap German property is at the moment and they may just be right.

How good is your German by the way? I understand that this is not one of those markets where you can get by speaking English very slowly and clearly. All the legal documents will be in German. I do know from experience (and not always the victim either) that mastery of a foreign language can suddenly fail when getting across unwelcome information - so look out.

A last point, make sure that you've got a decent tax accountant. They make our tax rules look like a model of clarity. Apparantly half the tax legislation in the world is published in German. May improve if Merkel gets in (or it may get worse if the SPD get back, they seem to be in a foreign capitalist bashing mood at the moment).

Good luck again.

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Good luck.  Money week is constantly going on about how cheap German property is at the moment and they may just be right.

How good is your German by the way?  I understand that this is not one of those markets where you can get by speaking English very slowly and clearly.  All the legal documents will be in German.  I do know from experience (and not always the victim either) that mastery of a foreign language can suddenly fail when getting across unwelcome information - so look out.

A last point, make sure that you've got a decent tax accountant.  They make our tax rules look like a model of clarity.  Apparantly half the tax legislation in the world is published in German.  May improve if Merkel gets in (or it may get worse if the SPD get back, they seem to be in a foreign capitalist bashing mood at the moment).

Good luck again.

Cheers IP.

I think Ill stick to land so the Tax affairs shouldnt be too complex. Ill hire an intpretor to help with documents.

You know, it amazes me that Ive read so many accounts on here of folks regretting thier decisions not to buy in the Uk a few years back, yet these same people show no interest in buying into a virgin German market. Im sure some of them have the resources for a £20 - 30000 Belin land plot, but instead they sit around waiting for the UK market to crash.

Will these same people in 5 years say THOSE THAT BOUGHT IN GERMANY 2005 WERE JUST LUCKY, THERE WAS NO SKILL INVOLVED, AND JUST LIKE PREVIOUS UK INVESTORS THEY JUST HAPPENED TO DO WELL BY CHANCE.

Edited by dogbox

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Guest muttley
You know, it amazes me that Ive read so many accounts on here of folks regretting thier decisions not to buy in the Uk a few years back, yet these same people show no interest in buying into a virgin German market.

But you're approaching buying property as a business.The vast majority here just want somewhere to live.That doesn't make us negative or foolish.

Will these same people in 5 years say THOSE THAT BOUGHT IN GERMANY 2005 WERE JUST LUCKY, THERE WAS NO SKILL INVOLVED, AND JUST LIKE PREVIOUS UK INVESTORS THEY JUST HAPPENED TO DO WELL BY CHANCE.

Probably.(Assuming you're right,of course)

Many people here were not in a position to buy in 2000-2001 (some were still doing GCSE's!)It is the fact that they were suddenly priced out of the market that is the cause of frustration.Many homeowners were indeed "just lucky".

Good luck in your new venture,I hope it works out.There's always a bull market somewhere.

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I've considered buying in Germany partly cos I have contacts there and partly cos I think the place is due for a period of growth. Prices are lower now in real terms than in 1983!!! Regional variations apply of course and city centre flats are still pretty pricey.

Thing is you can get a 75% mortgage fixed for 10 years at 4.5%. Also you can offset mortgage interest payements against tax on the BTL income.

Yields aren't great and tennants are highly protected with all sorts of rules and regs relating to rent increases and inability to boot em out, but the flipside is that people will normally rent for very long periods, so no messing about. Also, Germany is a renting culture, so the market is very liquid.

With the German ecconomy having been so poor for so long with high unemployment, I think we could well be at a trough in terms of both property prices and rentals.

Yes, all the documentation is in German and there's bound to be plenty of it, but English is pretty well spoken by generations up to 45 years old, so you'd not have a problem finding a solicitor who can help translate and advise.

Any reason you're going for Berlin? I know Cologne having lived there for a few years. Do you think it's proximity to Eastern Europe might help it to weather the exodus of manuafturing in that direction?

James.

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Any reason you're going for Berlin? I know Cologne having lived there for a few years. Do you think it's proximity to Eastern Europe might help it to weather the exodus of manuafturing in that direction?

Why Berlin? I believe such a historically important City has lost its way under communism but that the fundamentals that made this a great world City still remain. Couple this with the fact Germany is in a trough and the possibility that a new conservative Govt will kick - start the road to recovery (which many commentators beleive has already begun) and you get what I think is a very attractive proposition.

A Berlin Solicitor also tells me that many internantional Hedge and other investment funds are buying up thousands of appartments.

Think about what happened in London, Leeds, Manchester, Southhampton, Glasgow and Dublin.

Why not Berlins turn I say? If it doesnt boom I simply sell and get my money back because it wont go down any further.

Still cant decide between land v appartment.

Some will say move this thread to off - shore investing but the reason I put it here is to try and cause this to resonate with some posters that have over time often indicated thier frustration / jealousy at having missed the UK boom. Im talking about posters that had the ability but not the inclantion to buy between 1195 - 2002.

Now given that a proportion of these bears have the ability to buy now (eg - str fund languishing in a Bank) and that they oft' proclaim they wont be buying in UK for years to come, why not consider putting some cash into Berlin for example.

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Why Berlin? I believe such a historically important City has lost its way under communism but that the fundamentals that made this a great world City still remain. Couple this with the fact Germany is in a trough and the possibility that a new conservative Govt will kick - start the road to recovery (which many commentators beleive has already begun) and you get what I think is a very attractive proposition.

A Berlin Solicitor also tells me that many internantional Hedge and other investment funds are buying up thousands of appartments.

Think about what happened in London, Leeds, Manchester, Southhampton, Glasgow and Dublin.

Why not Berlins turn I say? If it doesnt boom I simply sell and get my money back because it wont go down any further.

Still cant decide between land v appartment.

Some will say move this thread to off - shore investing but the reason I put it here is to try and cause this to resonate with some posters that have over time often indicated thier frustration / jealousy at having missed the UK boom. Im talking about posters that had the ability but not the inclantion to buy between 1195 - 2002.

Berlin?  Lots of Germans bought property in East Berlin when the wall came down.  Bought old buildings, did them up.  There's a glut of luxury flats and offices with no-one wanting to buy or rent them.  Too expensive. The German housing market has been flat or declining for years.  Germans don't buy houses to make profit.  They buy them to make a home and they seldom move house.  Perhaps that's the problem with the prices being flat (aside of course, from the pitiful state of the economy)

I read some months back that a lot of Brits were buying in Bavaria - around Munich.

Now given that a proportion of these bears have the ability to buy now (eg - str fund languishing in a Bank) and that they oft' proclaim they wont be buying in UK for years to come, why not consider putting some cash into Berlin for example.

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I lived in Dusseldorf for a year. A lot of German people knock it, but I really enjoyed it. Kids were well behaved, friendly, plenty of police on the streets, if Turkey won in a football match the taxi drivers went crazy. Cheap to eat out combined with supermarkets that seemed to come from the eastern block meant i put on about a stone :blink:. Recognising German pr0nstars in the street was funny (German TV in the evening can be 4 hours of eurotrash fodder, that's my excuse anyway). Going out there for a reunion this Xmas - can't wait! Back to sensible socializing hours at the weekend. :lol:

I realize the Fritz have their problems, but why buy here and not there? Angela might just shake things up a bit - and I'm led to believe that they still have something resembling industry out there, which given some more flexible labour markets might just mean Germany comes through smelling rosier than other houses of cards across the channel.

But as with anywhere, do your research first...... any idea what sort of person you are planning on renting too?

Viel Gluck (or something like that).

/G

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I was in Hamburg working not so long ago and it was a very nice place indeed and this is at the height of a recession or so we are told.

Too many people in the UK have the boiled frog syndrome and are unable to think more than a few weeks ahead, many have only seen Spain yet think they know Europe ! they don’t . even Poland is starting to look better then the UK.

Good luck with the move

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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