Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 19.02.2019, 15:07
Dack Rambo's Avatar
Forum Legend
 
Join Date: Mar 2010
Location: Switzerland
Posts: 2,881
Groaned at 191 Times in 118 Posts
Thanked 1,854 Times in 915 Posts
Dack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputation
Investing in German Property

I am curious to know what people think of investing in German buy to let rental property. Prices have risen a lot in recent years but still seem comparativley low (to me at least) when looking at UK or France. Eastern Germany in particular looks attractive with still low prices, a recovering economy and renovated city centres. Any opinions?
Reply With Quote
  #2  
Old 19.02.2019, 15:22
amogles's Avatar
Forum Legend
 
Join Date: Mar 2008
Location: Zurich
Posts: 10,806
Groaned at 227 Times in 191 Posts
Thanked 22,512 Times in 9,559 Posts
amogles has a reputation beyond reputeamogles has a reputation beyond reputeamogles has a reputation beyond reputeamogles has a reputation beyond reputeamogles has a reputation beyond reputeamogles has a reputation beyond repute
Re: Investing in German Property

Quote:
View Post
I am curious to know what people think of investing in German buy to let rental property. Prices have risen a lot in recent years but still seem comparativley low (to me at least) when looking at UK or France. Eastern Germany in particular looks attractive with still low prices, a recovering economy and renovated city centres. Any opinions?

Germany has traditionally, for a variety of reasons, had relatively low real estate prices (big cities excepted). This is not just in the east. Even in the west and richer areas you can still find comparatively cheap houses.


There are definitely locations that are growing in desirability and if you get in early, I'm sure you can do very well out of them. It's all a question of location and recognizing potential.


When it comes to buying for rent, Germany has laws that skew the market in favour of the tenant. Tenants can hold you responsible for lots of things and evictions are difficult to push through. So make sure you get good legal advice and also pick your tenants wisely.
Reply With Quote
  #3  
Old 19.02.2019, 15:25
st2lemans's Avatar
Forum Legend
 
Join Date: Dec 2010
Location: Lugano
Posts: 29,126
Groaned at 2,025 Times in 1,522 Posts
Thanked 34,676 Times in 16,470 Posts
st2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond repute
Re: Investing in German Property

Buy to let is a bad idea if you don't live in the same country.

Tom
Reply With Quote
  #4  
Old 19.02.2019, 15:26
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 13,941
Groaned at 272 Times in 178 Posts
Thanked 17,090 Times in 7,241 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Re: Investing in German Property

i looked at this a few years ago but was put off by:

- low rental yields
- high transaction costs
- legal system favouring tenants
- not wanting the hassle of managing property

i decided against it. now it looks even less appealing (although it does mean i missed out on capital gains).
Reply With Quote
This user would like to thank Phil_MCR for this useful post:
  #5  
Old 19.02.2019, 15:46
Dack Rambo's Avatar
Forum Legend
 
Join Date: Mar 2010
Location: Switzerland
Posts: 2,881
Groaned at 191 Times in 118 Posts
Thanked 1,854 Times in 915 Posts
Dack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputation
Re: Investing in German Property

Quote:
View Post

i decided against it. now it looks even less appealing (although it does mean i missed out on capital gains).

Potential capital gains is the biggest attraction of this market for me.
Reply With Quote
This user would like to thank Dack Rambo for this useful post:
  #6  
Old 19.02.2019, 16:11
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 13,941
Groaned at 272 Times in 178 Posts
Thanked 17,090 Times in 7,241 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Re: Investing in German Property

Quote:
View Post
Potential capital gains is the biggest attraction of this market for me.
then you should have bought 10 years ago
Reply With Quote
  #7  
Old 19.02.2019, 17:53
Dack Rambo's Avatar
Forum Legend
 
Join Date: Mar 2010
Location: Switzerland
Posts: 2,881
Groaned at 191 Times in 118 Posts
Thanked 1,854 Times in 915 Posts
Dack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputation
Re: Investing in German Property

Quote:
View Post
then you should have bought 10 years ago

but will you be saying that 10 years from now?
Reply With Quote
  #8  
Old 19.02.2019, 18:03
Junior Member
 
Join Date: Oct 2017
Location: Regensdorf
Posts: 51
Groaned at 7 Times in 3 Posts
Thanked 57 Times in 28 Posts
gugguseli is considered knowledgeablegugguseli is considered knowledgeablegugguseli is considered knowledgeable
Re: Investing in German Property

We often hear success stories in property but not the other stories.
We hear of that person that bought in the Marais in Paris 20 years ago or in Hackney 10y ago.

Fine, but we rarely hear the average Joe and the actual return generated taken into account:
- capital gain
- taxation (heavy in most countries)
- repairs
- missed payments
- all the fees to banks, estate agents, etc.
- the time spent managing the property.
- the stress generated by all this.
Reply With Quote
The following 4 users would like to thank gugguseli for this useful post:
  #9  
Old 19.02.2019, 18:04
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 13,941
Groaned at 272 Times in 178 Posts
Thanked 17,090 Times in 7,241 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Re: Investing in German Property

Quote:
View Post
but will you be saying that 10 years from now?
no.
Reply With Quote
  #10  
Old 19.02.2019, 18:10
roegner's Avatar
Moderately Dutch
 
Join Date: May 2011
Location: Zurich
Posts: 10,373
Groaned at 349 Times in 291 Posts
Thanked 12,378 Times in 5,952 Posts
roegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond repute
Re: Investing in German Property

For example in Berlin prices are expected to go up and up (that city is still comparatively cheap).


From a tax perspective there is a Grundsteuer, please note that the government is looking to change that and for sure it will not be cheaper...... it is an excellent way for cities to make easy money on something you already paid for when you bought the house......


Having said that, I have bought a house in Germany but then I do have relatives there and most likely will move there when I retire.
Reply With Quote
  #11  
Old 19.02.2019, 20:43
Member
 
Join Date: Jul 2011
Location: Zürich
Posts: 154
Groaned at 0 Times in 0 Posts
Thanked 62 Times in 45 Posts
azt33 has earned some respectazt33 has earned some respect
Re: Investing in German Property

Not in Germany, but I invested in real estate in the Netherlands - it is providing me with passive income (and at this rate, I'll have the mortgage paid off in about 5 years). I am actually looking to buy the second apartment, and potentially a third
Reply With Quote
The following 2 users would like to thank azt33 for this useful post:
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
German jargon found in property advertisement Gramatyka356 Finance/banking/taxation 3 02.08.2018 05:34
[FS] Swiss Property Taxation book (German) Snoopy Items for sale 0 09.09.2017 11:02
Buying / Investing in property in UK as a second home krlock3 Housing in general 16 11.07.2017 17:46
Investing long term - buying a rental property vs trading index funds vs? saiya-jin Finance/banking/taxation 14 01.10.2015 12:33
Investing in Property - A Seminar in Geneva by Forth Capital Number 10 Commercial events 0 06.05.2008 20:39


All times are GMT +2. The time now is 06:26.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0