Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 07.04.2020, 19:11
Dack Rambo's Avatar
Forum Legend
 
Join Date: Mar 2010
Location: Switzerland
Posts: 2,958
Groaned at 191 Times in 118 Posts
Thanked 1,924 Times in 947 Posts
Dack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputation
Buying an apartment in Germany

I am considering cashing in my Swiss second pillar to buy an apartment in Germany (Dresden). I am wondering if this is a good move in the light of the current crisis? I had been looking at a couple of places but am not sure how prices will evolve. After the 2008 crisis property prices in Germany began a steady rise but how will things work out this time?
Reply With Quote
  #2  
Old 07.04.2020, 19:29
MusicChick's Avatar
modified, reprogrammed and doctored≤
 
Join Date: Feb 2008
Location: La Cote
Posts: 17,036
Groaned at 372 Times in 255 Posts
Thanked 19,574 Times in 10,214 Posts
MusicChick has a reputation beyond reputeMusicChick has a reputation beyond reputeMusicChick has a reputation beyond reputeMusicChick has a reputation beyond reputeMusicChick has a reputation beyond reputeMusicChick has a reputation beyond repute
Re: Buying an apartment in Germany

I cannot help you out with your question re. economy, but Dresden is a beautiful place, Saxony is amazing! All the best in your adventure!
Reply With Quote
This user would like to thank MusicChick for this useful post:
  #3  
Old 07.04.2020, 19:54
Guest
 
Posts: n/a
Re: Buying an apartment in Germany

check out for flood risks/history.
Reply With Quote
This user would like to thank for this useful post:
  #4  
Old 07.04.2020, 20:31
fatmanfilms's Avatar
The Marmite Moderator
 
Join Date: Apr 2010
Location: Verbier
Posts: 20,606
Groaned at 431 Times in 328 Posts
Thanked 21,400 Times in 11,221 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Buying an apartment in Germany

Quote:
check out for flood risks/history.
Plus tenants rights if you rent it out.
Reply With Quote
  #5  
Old 08.04.2020, 17:17
Dack Rambo's Avatar
Forum Legend
 
Join Date: Mar 2010
Location: Switzerland
Posts: 2,958
Groaned at 191 Times in 118 Posts
Thanked 1,924 Times in 947 Posts
Dack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputation
Re: Buying an apartment in Germany

Really what I am wondering is whether to buy now or wait a few months to see how prices are affected by the corona crisis.
Reply With Quote
This user groans at Dack Rambo for this post:
  #6  
Old 08.04.2020, 17:36
fatmanfilms's Avatar
The Marmite Moderator
 
Join Date: Apr 2010
Location: Verbier
Posts: 20,606
Groaned at 431 Times in 328 Posts
Thanked 21,400 Times in 11,221 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Buying an apartment in Germany

Quote:
View Post
Really what I am wondering is whether to buy now or wait a few months to see how prices are affected by the corona crisis.
There won't be enough transactions to be able to value properly as a normally illiquid market has frozen.

Best guess prices have fallen 15-50%, I completed on a property on 19th March contracts signed late December, so unfortunate timing.
Reply With Quote
The following 4 users would like to thank fatmanfilms for this useful post:
  #7  
Old 08.04.2020, 19:36
Dack Rambo's Avatar
Forum Legend
 
Join Date: Mar 2010
Location: Switzerland
Posts: 2,958
Groaned at 191 Times in 118 Posts
Thanked 1,924 Times in 947 Posts
Dack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputation
Re: Buying an apartment in Germany

so waiting a while is the best option
Reply With Quote
  #8  
Old 08.04.2020, 20:24
Treverus's Avatar
Forum Legend
 
Join Date: Dec 2007
Location: Work in ZH, live in SZ
Posts: 11,948
Groaned at 305 Times in 261 Posts
Thanked 22,746 Times in 8,237 Posts
Treverus has a reputation beyond reputeTreverus has a reputation beyond reputeTreverus has a reputation beyond reputeTreverus has a reputation beyond reputeTreverus has a reputation beyond reputeTreverus has a reputation beyond repute
Re: Buying an apartment in Germany

Quote:
View Post
Best guess prices have fallen 15-50%.
True for the UK, not for Germany, especially in popular cities. Prices have been increasing a lot over the last years because Germany was very affordable compared to income and credit was cheap. Prices are stable but I think we will face a credit crunch - interest rates are low but banks will get a lot more restrictive who they lend to... Iím not sure Iíd buy as an investment unless you are going to live in it(?)

Really good investment property is near impossible to find at the end of a ten year boom. Iíd look for small flats near popular universities. But Iím not the only one thinking that way...
Reply With Quote
The following 2 users would like to thank Treverus for this useful post:
  #9  
Old 08.04.2020, 20:41
Forum Legend
 
Join Date: Mar 2008
Location: ZH
Posts: 7,740
Groaned at 88 Times in 69 Posts
Thanked 11,692 Times in 4,745 Posts
doropfiz has a reputation beyond reputedoropfiz has a reputation beyond reputedoropfiz has a reputation beyond reputedoropfiz has a reputation beyond reputedoropfiz has a reputation beyond reputedoropfiz has a reputation beyond repute
Re: Buying an apartment in Germany

As one of the factors to consider: if you might be renting out, then before you buy, learn about the terms and conditions of agents in the area.
Reply With Quote
  #10  
Old 08.04.2020, 22:40
Dack Rambo's Avatar
Forum Legend
 
Join Date: Mar 2010
Location: Switzerland
Posts: 2,958
Groaned at 191 Times in 118 Posts
Thanked 1,924 Times in 947 Posts
Dack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputation
Re: Buying an apartment in Germany

Quote:
View Post
As one of the factors to consider: if you might be renting out, then before you buy, learn about the terms and conditions of agents in the area.
it is a place in Dresden to live in myself
Reply With Quote
The following 2 users would like to thank Dack Rambo for this useful post:
  #11  
Old 08.04.2020, 22:45
Guest
 
Posts: n/a
Re: Buying an apartment in Germany

Again, check flooding history.
Reply With Quote
  #12  
Old 08.04.2020, 22:45
MusicChick's Avatar
modified, reprogrammed and doctored≤
 
Join Date: Feb 2008
Location: La Cote
Posts: 17,036
Groaned at 372 Times in 255 Posts
Thanked 19,574 Times in 10,214 Posts
MusicChick has a reputation beyond reputeMusicChick has a reputation beyond reputeMusicChick has a reputation beyond reputeMusicChick has a reputation beyond reputeMusicChick has a reputation beyond reputeMusicChick has a reputation beyond repute
Re: Buying an apartment in Germany

Quote:
View Post
it is a place in Dresden to live in myself
I don't know why people assume right away that you don't know that area. Do you?
Reply With Quote
  #13  
Old 09.04.2020, 07:48
Dack Rambo's Avatar
Forum Legend
 
Join Date: Mar 2010
Location: Switzerland
Posts: 2,958
Groaned at 191 Times in 118 Posts
Thanked 1,924 Times in 947 Posts
Dack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputation
Re: Buying an apartment in Germany

Quote:
View Post
I don't know why people assume right away that you don't know that area. Do you?
yes, I know Dresden quite well as I moved here after prolonged unemployment in CH
Reply With Quote
This user would like to thank Dack Rambo for this useful post:
  #14  
Old 09.04.2020, 07:49
Dack Rambo's Avatar
Forum Legend
 
Join Date: Mar 2010
Location: Switzerland
Posts: 2,958
Groaned at 191 Times in 118 Posts
Thanked 1,924 Times in 947 Posts
Dack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputation
Re: Buying an apartment in Germany

Quote:
View Post
There won't be enough transactions to be able to value properly as a normally illiquid market has frozen.

Best guess prices have fallen 15-50%, I completed on a property on 19th March contracts signed late December, so unfortunate timing.
where did you buy? In Malta or elsewhere?
Reply With Quote
  #15  
Old 09.04.2020, 07:53
Banned
 
Join Date: Oct 2007
Location: CH
Posts: 10,975
Groaned at 2,037 Times in 1,121 Posts
Thanked 5,139 Times in 3,246 Posts
omtatsat omtatsat omtatsat omtatsat omtatsat
Re: Buying an apartment in Germany

Quote:
View Post
I am considering cashing in my Swiss second pillar to buy an apartment in Germany (Dresden). I am wondering if this is a good move in the light of the current crisis? I had been looking at a couple of places but am not sure how prices will evolve. After the 2008 crisis property prices in Germany began a steady rise but how will things work out this time?
You would be much better buying a house in France or Italy or Spain on the Meditteranean.
Reply With Quote
  #16  
Old 09.04.2020, 08:05
roegner's Avatar
Moderately Dutch
 
Join Date: May 2011
Location: Zurich
Posts: 10,964
Groaned at 360 Times in 301 Posts
Thanked 13,665 Times in 6,397 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: Buying an apartment in Germany

No idea about prices but apart from the caveats already given: Dresden is a lovely town, Iīd imagine houses will only get more expensive (as they are gettng more expensive in Berlin, where I bought) and interest is still very low (so lock in the interest for a good amount of years!).

Had a look at the prices now in the area where I bought and no difference. But then that may only come later this year, if at all.
Reply With Quote
  #17  
Old 09.04.2020, 08:57
Newbie 1st class
 
Join Date: Dec 2016
Location: DE
Posts: 13
Groaned at 0 Times in 0 Posts
Thanked 3 Times in 3 Posts
mmcc has no particular reputation at present
Re: Buying an apartment in Germany

Hi,
A side topic, but potentially relevant for the OP.
Are you not liable for German tax on the funds you draw down from 2nd pillar to buy a property in Germany?
I am now also a German resident (and working) and was advised so by a Munich tax adviser. After discussions with them, I decided to leave my Swiss 2nd pillar in Switzerland for now. If there is a proven way to use the 2nd pillar funds without being liable for German tax, I would be very interested to get more details.
Reply With Quote
  #18  
Old 09.04.2020, 09:11
Dack Rambo's Avatar
Forum Legend
 
Join Date: Mar 2010
Location: Switzerland
Posts: 2,958
Groaned at 191 Times in 118 Posts
Thanked 1,924 Times in 947 Posts
Dack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputation
Re: Buying an apartment in Germany

Quote:
View Post
Hi,
A side topic, but potentially relevant for the OP.
Are you not liable for German tax on the funds you draw down from 2nd pillar to buy a property in Germany?
I am now also a German resident (and working) and was advised so by a Munich tax adviser. After discussions with them, I decided to leave my Swiss 2nd pillar in Switzerland for now. If there is a proven way to use the 2nd pillar funds without being liable for German tax, I would be very interested to get more details.
exactly what tax did he say you would have to pay?
Reply With Quote
  #19  
Old 09.04.2020, 10:11
fatmanfilms's Avatar
The Marmite Moderator
 
Join Date: Apr 2010
Location: Verbier
Posts: 20,606
Groaned at 431 Times in 328 Posts
Thanked 21,400 Times in 11,221 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Buying an apartment in Germany

Quote:
View Post
True for the UK, not for Germany, especially in popular cities. Prices have been increasing a lot over the last years because Germany was very affordable compared to income and credit was cheap. Prices are stable but I think we will face a credit crunch - interest rates are low but banks will get a lot more restrictive who they lend to... Iím not sure Iíd buy as an investment unless you are going to live in it(?)

Really good investment property is near impossible to find at the end of a ten year boom. Iíd look for small flats near popular universities. But Iím not the only one thinking that way...
It greatly depends on what percentage of rent landlords receive. I know commercial property funds that have just received 30% of the second quarter rent. Most people don't have 3 months living costs in the Bank, so plenty of private rents will be missed.
Reply With Quote
This user would like to thank fatmanfilms for this useful post:
  #20  
Old 09.04.2020, 10:20
Senior Member
 
Join Date: Jul 2016
Location: GR
Posts: 440
Groaned at 21 Times in 17 Posts
Thanked 144 Times in 122 Posts
wantone has no particular reputation at present
Re: Buying an apartment in Germany

Quote:
View Post
There won't be enough transactions to be able to value properly as a normally illiquid market has frozen.

Best guess prices have fallen 15-50%, I completed on a property on 19th March contracts signed late December, so unfortunate timing.
Are you sure about German home prices? I think it is too early to say if it will be a price drop due to a severe recession. In theory it will but with trillions of money printed all over the world it may not realise.
Reply With Quote
The following 2 users would like to thank wantone for this useful post:
Reply

Tags
german property




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
Buying something that can only be sent to Germany chinensis8 Other/general 2 22.10.2018 18:37
Buying a VW California in CH/Germany disaga87 Transportation/driving 27 27.09.2017 15:26
buying a car from germany Anwar Transportation/driving 0 28.02.2011 21:18
Buying plants in Germany? emmy Other/general 7 09.02.2011 08:33
Buying a bike in Germany. Jose1984 Sports / Fitness / Beauty / Wellness 32 08.06.2010 10:54


All times are GMT +2. The time now is 17:34.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0