Find Berlin Apartments For Sale With a Berlin Realtor’s Expert Guidance Since quite time now the Berlin property market has been on an upswing. As the city grows and demand keeps rising, prices will spiral upwards as well rentals. Some of the best properties in choice locations have been sold out or are priced so high as to make investments not worth it. Even upcoming properties in these locations have been booked right at the time of launch. Foreign investors looking to grow their wealth through investment in Berlin property need to have a local agency to provide guidance and formulate a strategy for success.
Since location influences property prices, an investor must know that apartments for sale in Berlin’s better locations such as Mitte and Charlottenburg-Wilmersdorf can range between 3000 to 5000 euros per square meter whereas property in the peripheries of Berlin go for around 1000 to 2500 Euro per square meter. Locations such as Lictenberg, Spandau and Marzahn Hellesdorf are priced at around 2000 Euros per square meter. Rent is in proportion to the quality of the apartment, its location and its proximity to green spaces and public transport. A common route is for investors to buy apartments, hold on to them and rent them out. In such cases the Berlin realtor takes care of finding tenants, managing the assets and the rent as well as payment of taxes. Most Germans prefer to rent rather than buy and with the rising influx of people moving in to Berlin for jobs or permanent residence, rents are rising, assuring a return of between 3 to 6% for investors. Rents will rise still further as the city grows and could eventually match those
of Munich, almost twice that of Berlin. Option for investors in the light of this data is to buy more apartments in upcoming projects in Berlin neighborhoods and lease or rent them out. Since they get possession of vacant property they can fix the rent to reflect current rate and have short term rentals so that they can increase rentals. It may be just possible to buy apartments for sale in Berlin’s posh areas but investors must expect to pay higher prices as well as consider the existing tenants, cost of renovation, repairs and utility before they can count their apples.
If investors consider investment in the medium segment then they can go in for strategic plan that would typically involve a Berlin realtor who will then devise a customized strategy including: Setting up a holding company to buy and hold Berlin apartments for sale; Registration with appropriate authorities and planning for tax incidence; Leveraging capital which means investors put up only 30% to 40% and banks in Germany provide the rest against mortgage helping investors buy more apartments or an entire apartment block; Plan for short term rentals, long term rental or a lease option so that the rentals cover payment of mortgage in addition to something left over for administrative expenses as well as for the realtor and investor; Designing an exit strategy that results in wealth growth.
A Berlin realtor with sound knowledge of markets and local regulations is the best person to help an investor get off on the right foot on his road to creating wealth.
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Contact Us GATE Berlin property invest GmbH Kurf端rstendamm 30 Berlin 10719 Germany Phone: +49 (0)30 327 66 540 Email: info@gateberlin.com