Submitted by: Gisela Hertz
Berlin real estate rates are shooting up but are still below the prevailing prices when compared to London, Dusseldorf, Hamburg or Munich. For property buyers this is good news. If you consider Berlin as an ideal location for investment in real estate, you are right. Despite escalating demand, you can still buy property at a comparatively low price. Hold on to it for a while and you can expect maximum returns on your investment. If you like, you can rent out property and expect high rentals due to an influx of people into the city and shortage of accommodation.
Selection of the right locality is important if you are looking for high returns. Even within localities, there are areas where property may command higher prices and future appreciation due to the nature of the building or proximity of facilities and parks. A local property dealer knows the ins and outs of such finer details and should be able to provide perfect guidance.
For those not in the know Berlin has its set of laws applicable to buying properties, especially from an investment perspective. If you aim to get a genuine return on investment then you must also know the locality, prevailing prices and the appreciation you can expect for such property investments or the rental values. A visit is necessary to help you decide. Even then finer points may escape you. The wisest course is to engage a Berlin real estate agency to assist you from start to finish and that includes advice and discussion of your objective.
As a buyer you must know that procedures in Berlin are unique to this city. You will be expected to pay a land tax of 6%, legal fees amounting to 1,2% and registration fee of 0.5%, with only one signature being necessary for recording the purchase, a process that can take about a month or more. If and when the property is sold, you are liable to tax and attendant tax benefits such as 2 or 2.25% depreciation. If you sell the property within 10 years of purchase and have not occupied it, then you are liable to pay heavy capital gains appreciation tax. During the interim period you could consider renting out the property and getting returns. For this reason, as a buyer, you would need to consider location, prevailing prices, future expected gains and rentals as well as tax considerations. A Berlin realtor not only advises and guides; he also helps devise the right investment strategy.
Then there are related matters such as arranging finance. Local banks may extend up to 60% of the property value as funding for investment in real estate. A local bank account is necessary to carry out transactions or for deposit of rental amounts should you decide to rent out the purchased property. In both areas your real estate agency of Berlin proves extremely helpful.
The first step to investment in real estate in Berlin is to contact the best local agent and work out a strategy aligned with your objectives and budget. Success follows.
About the Author: This article is written by Martin Boelter on behalf of GateBerlin, this is having topics on Your Berlin property for sale, Berlin Apartments for Sale and for more information click here:
gateberlin.com/berlin-real-estate/
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