The housing sector has been characterized by excessive boom and bust cycles during the last decade. However, not all countries have seen high property price volatility. Indeed, Germany is remarkable in that it has maintained flat pricing levels throughout the period and has not responded to any macroeconomic shocks.
The fundamental reason for this stability is the development of a sophisticated rental market and real estate finance. While the monetary stimulus is effectively transferred to the real economy through the property sector in other countries, the German emphasis on prudential lending protects the housing market from financial market distortions. Ensure to visit de.collected.reviews to have prior knowledge of your options.
Whether you’re planning a six-month or ten-year stay in Germany, you’ll need to find a place to call home. Even if your purpose is to study or a few weeks’ tourism, you need shelter. Housing costs vary greatly depending on where you live and whether you want your place or are willing to share with others. It might be hard doing this alone. Casando will be of help rendering this service to you stress-free. However, compared to most other European countries, you may rest confident that rental prices in Germany are relatively low.
If you’ve fallen in love with Germany and want to stay for the long haul, buying a home, there is a fantastic opportunity to establish roots. Purchasing real estate in Germany is also a wise investment. There has never been a better time to invest in real estate. Long-term mortgage rates are at an all-time low, ranging between 0.6 and 2.5 per cent, and housing prices are far lower than in other European economic centres.
The first step is to determine how much money you can borrow. Foreigners can acquire real estate in Germany with no legal limits; even non-EU nationals can acquire property to live in or invest in. Mortgage rates and offerings vary greatly, so you should look around rather than just going with your bank.
Mortgage lenders are notoriously cautious. They will examine the property’s value, as well as your creditworthiness as a borrower. Your income, as well as all of your outgoings, will be taken into account. Even minor debts, such as phone contracts or auto loans, will be included in your total debt. In most cases, you’ll be forced to pay 20% of the property’s cost out of your pocket, but in other cases, 100%+ mortgages are available. Payments should not be more than once a month.
The classic adage “location, location, location” rings valid for houses for sale in Germany. In Germany, real estate is a long-term investment with solid infrastructure; transportation and education can pay off in the future. The majority of ex-pats will hire an estate agent (immobilienmakler) to assist them in their search.
Please don’t limit yourself to one realtor; it’s better to speak with several to receive the most comprehensive list of houses for sale in Germany. Check who pays the estate agent fees; sometimes the buyer pays, and other times the buyer and seller split the costs. You can also search on the internet.
Popular websites such as Immobilienscout24.de, immonet.de, and immovelt.de can also provide helpful information about a location and associated costs. Get a structural survey once you’ve located the perfect property. Sellers are not required to disclose structural flaws.
There are other charges associated with purchasing properties for sale in Germany and the 20% deposit. Expect to pay up to 15% more than the original buying price. Estate agents’ fees range from 3 to 7%, notaries’ fees are at 2%, and property transfer tax is between 3.5 and 6.5 per cent.
If you can’t find a notary who speaks your language or English, you’ll have to pay for translation. German houses for sale are a long-term investment. If you sell your home before you’ve owned it for ten years, you’ll be subject to a capital gains tax of 25%. So, before you buy, make sure you’re very convinced of your choices.