| What You Can Expect If You Want to Buy German Real Estate |
| Written by John Harvey |
| Wednesday, 02 December 2009 08:06 |
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First and most importantly for citizens of other countries, Germany imposes no restrictions on foreign ownership of German real estate. This means that citizens of other countries may buy real estate in Germany wherever it is located and no matter its size or type. In fact, Germany has a diverse population which includes large numbers of Greek, Italian, Spanish, British and American expatriates, and without a doubt many of them own German real estate.
First and most importantly for citizens of other countries, Germany imposes no restrictions on foreign ownership of German real estate. This means that citizens of other countries may buy real estate in Germany wherever it is located and no matter its size or type. In fact, Germany has a diverse population which includes large numbers of Greek, Italian, Spanish, British and American expatriates, and without a doubt many of them own German real estate. Prices Vary Like any other country, prices for German real estate vary according to the type and location of the property. As a general rule, however, real estate located in the former West Germany costs more than property within the former East Germany. Prices for terrace homes in Germany begin at around $115,000. Detached homes range from about $200,000 to $875,000 and more. Apartments in the cities are very popular in Germany, and they sell for high prices. They may cost well over $400,000, especially if they are located in Munich. Location As mentioned above, city apartments are extremely popular in this country. As a matter of fact, more than half of Germany's population lives in rented apartments. Housing shortages in some of the country's cities and suburbs make apartments there even more desirable. At least three-fourths of German houses are relatively new, having been built after the end of World War II, but it remains possible to find many lovely older homes in the countryside. Real estate in the Rhine and Mosel valleys are popular with those looking for homes featuring a rural lifestyle. Many properties located in the former East Germany are a bit run down and require renovation and modernization. Standard of Living and Cost of Living Germany has an overall very high standard of living and fairly low inflation rates. Its cost of living is a little higher than some other European Union countries, but it is about the same as the cost of living in France or the United Kingdom. The Real Estate Purchase Process Buying a piece of real estate in Germany will require the services of an attorney or notary in order to complete the legal work and check for any liabilities that may be recorded against the property. After the purchase is completed the title to the property transfers to the new owner, and the deed to the property will be registered at the local land registry office. You should anticipate paying fees totaling around six to seven percent of the real estate's purchase price. The fees include the buyer's portion of the real estate agent's commission, the real estate transfer tax and the notary's charge. Taxes In Germany, property tax is paid so that local services can be provided. This tax is a small percentage of the real estate's assessed value, which typically is lower than its current market value. A wealth tax of about 0.5% of the property's value is paid by non-residents who own real estate in Germany. If a property is sold within ten years of being purchased, the capital gains on the sale are taxed at the normal income tax rates. Borrowing Money For A Purchase German banks typically will loan up to 70 percent of a property's value, so you can expect to make a down payment of at least 30 percent. Mortgages with fixed rates of interest can have terms as long as 30 years. About the Author: Watch sample video clips for international real estate companies put together by TopSeekInc: Straubing Immobilien and Straubing Immobilien Niederbayern |
