Germany - Getting Acquainted with Germany

Article Date: 2007-11-18

If you are interested in purchasing a property in Germany, it is a good time! Mortgage rates are still low and purchase prices of the houses remain moderate, although some have begun to rise, especially around Munich. There is little chance of increase in property values over the next few years and any such earnings would be taxable if the re-sale occurred within 10 years of purchase.

Germans tend to buy houses for life. This leads to fewer real-estate market price fluctuations, although the demand for choice locations does remain high. Hence, it is better to invest in prime locations. This entails locations with quality infrastructure. Naturally, the initial price may be higher, but in the long-term, you may be forking out for a lot more wear and tear if you don't.
One will very seldom find an affluent German who is not a home owner. In addition, there are no legal restrictions on foreigners to Germany owning property. The only difficulty to foreign ownership of property may lie in the financial institutions that offer mortgages. They may require a higher down payment owing to a lack of long-term credit history.

Property costs can be conservatively estimated at about 10 percent of the purchase price. In addition to the agent's commission there will be a property transfer tax, a notary fee and additional small administrative costs, perhaps including the hiring of an interpreter.

The property transfer tax is 3.5 percent of the purchase price and is paid by the purchaser. The higher the purchase price, the higher this tax. This does tempt one to arrange a lower price shown on the contract with the seller, which numerous purchasers attempt. Take strict care to avoid this unethical practice as the reward will be a very severe penalty fee!

Written by Janine B © Asset-Property.com

For Sale - Tegel Apartments, West Berlin

Germany - Berlin
Flat/Apartment

Come home to the completely renovated and fully tenanted apartments which is in the perfect location, near Tegeler Lake in the luxury district of Reinickendorf.

Asking Price From 91,000.00 (EUR)

For Sale - Berlin - Tiergarten

Germany - Berlin
Flat/Apartment

Assetz is proud to present this amazing selection of apartments in the trendy, central area of Tiergarten, Berlin. This calm, residential side street represents a fantastic investment.

Asking Price From 99,000.00 (EUR)