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Buying A Property In Berlin?


CarterUSM
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Hi

I am seriously considering investing in a property in a city in Europe where there is a year-round demand for visitor accommodation, and also where there appears to be scope for capital appreciation. I intend my maximum outlay to be no more than £60,000. My intention is to let the property out as short-term visitor accommodation, and the ultimate objective being long-term capital appreciation. I would put management of the property in the hands of a local management company who would be responsible for furnishing and maintaining the property; collecting payment; and handling reservations.

After having done some initial investigations, I would be particularly interested in the possibility of buying such a property in Berlin, as there are fewer restrictions on foreigners owning property in Germany than in many other European countries; property still appears to be relatively inexpensive there; there is a year-round demand from visitors; and the local market would still appear to offer scope for capital growth.

I do not anticipate any problems in financing the purchase as I have the necessary funds readily available.

I am aware of the capital gains tax condition for the sale of any property in Germany within ten years of its purchase.

What I would really appreciate is if anyone may be able to enlighten me regarding the potential advantages and disadvantages of my proposed course of action. Specifically, I would be interested in your thoughts as to whether there are other areas in Germany, or elsewhere in Europe, where property is still relatively inexpensive, where the scope for capital gains is thought to be favourable, and the procedure for buying property is not considered to be too cumbersome.

In addition, I would be interested to hear people’s views as to the pros and cons of buying an overseas property with the intention of letting it out for short-term visitors, as opposed to letting it out to long-term tenants.

Finally, I would be very grateful if anyone could point me in the right direction regarding the following; (i) other sources of information relevant to my enquiry; (ii) any other forums devoted to overseas property investment; (iii) any UK agents specialising in overseas property, (iv) any overseas agents with offices in the UK (specifically in Liverpool, Manchester or central London).

Very many thanks in anticipation of your assistance, and I look forward to hearing from you.

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(+)

My own uneducated guess is that over the next decade or two, prices in Berlin will rise to the european norm.

Germans have themselves got very interested in property lately, because of low interest rates.

(-)

They have already massively risen in the last decade or so.

Berlin still has no solid self sustaining economic base. Unemployment is high

Lepizig and Dresden are similar situation

In the provinces, prices are low, and in the East, probably falling

The long term demographics of Germany are negative, although may be altered by immigration.

The admin will turn out to be tiresome, once the initial excitement wanes.

I like this forum, although it is fairly quiet these days.

http://www.askaboutmoney.com/forums/overseas-property-investment.56/

this post has some links to other forums

http://www.askaboutmoney.com/threads/other-overseas-property-forums-for-irish-and-uk-investors.96504/

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  • 2 weeks later...

Berlin is a great city, but I suspect you have missed the boat there by some years.

It's also one of the cities that ruled airbnb illegal, limiting the opportunity for holiday rentals.

Personally, I think Poland is a very underrated holiday country and likes to restore old towns. Torun now looks wonderful. Still not expensive, having had the good sense to avoid the Euro.

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  • 4 weeks later...

(+)

My own uneducated guess is that over the next decade or two, prices in Berlin will rise to the european norm.

Germans have themselves got very interested in property lately, because of low interest rates.

(-)

They have already massively risen in the last decade or so.

Berlin still has no solid self sustaining economic base. Unemployment is high

Lepizig and Dresden are similar situation

In the provinces, prices are low, and in the East, probably falling

The long term demographics of Germany are negative, although may be altered by immigration.

The admin will turn out to be tiresome, once the initial excitement wanes.

I like this forum, although it is fairly quiet these days.

http://www.askaboutmoney.com/forums/overseas-property-investment.56/

this post has some links to other forums

http://www.askaboutmoney.com/threads/other-overseas-property-forums-for-irish-and-uk-investors.96504/

Here are the facts.

Leipzig also known as hypezig is the fastest growing town in Germany. Most of it comes from other areas in the east where population is shrinking. If you invest in the East I would stick to Berlin, Leipzig & Dresden. The time to invest in this part was 2005 2006 since then property prices have doubled. Germans don't buy houses and are long term renters. However Germans do like a good yield and are weary of QE and are looking for investments with a return.

As far as unemployment, yes it is higher here but it has come down a lot.

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  • 6 months later...

Well, I just sold in Berlin.

 

The train is going faster and faster... in 2008, 1700€/m2 were normal in Charlottenburg, 3500-4000E/m2 in Mitte. (My favorite areas for investment).

Big companies built new condominiums.. pushed prices above reasonable. +> 10.000€/m2 in Mitte (but you can still find 4000, 5000 .. 6000€/m2)

Best information is given by  Gutacherausschuss Berlin. Just click on their newest report.

Prices are 33% up since last year... Volumes are still rising, too. But in my mind, it's become much too crazy and  I much prefer to be avant-garde. ;)

 

Leave the ship before it's sinking.

So, I am 100% liquid.

 

Actually, I am looking forward to the crash in London march 17. :wub:

Eventually I'll buy  as well a flat in Paris  - if the prices continue to drop this winter...:)

Both cities seem to me as a  much hotter option right now.

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