Are you an English speaker interested in buying real estate in Germany? It can be a daunting process, especially if you’re not familiar with the German language or the country’s real estate laws. However, with some preparation and knowledge of the local market, buying real estate in Germany can be a smart investment for your future.
Here are five tips to keep in mind when buying real estate in Germany:
1. Know the local market
Germany’s real estate market has been on the rise in recent years, especially in major cities like Berlin, Munich, and Frankfurt. However, it’s important to do your research and understand the local market trends in the area you’re interested in. For example, some areas may have high demand for rental properties, while others may have a surplus of homes for sale.
The geographic heart of europe is a diverse country with a range of different regions, each with its own unique culture, economy, and lifestyle. Before buying property in Germany, it’s important to determine where you want to live or invest. For example, if you are looking for a bustling city lifestyle, Berlin or Munich might be the right choice. On the other hand, if you prefer a more relaxed, rural lifestyle, you might consider buying a property in the countryside.
2. Find a reputable real estate agent
To navigate the German real estate market, it’s recommended to work with a reputable real estate agent who speaks English. They can help you find the right property, negotiate the sale, and guide you through the legal process. Look for an agent who is licensed with the local Chamber of Commerce and Industry (IHK) and has a good track record.
We are pleased to help and guide you on your search for the right property that fits your demand and needs. Just contact us for questions and advice.
3. Understand the legal process
The legal process of buying real estate in Germany can be complex and lengthy, so it’s important to have a good understanding of the process. This includes the role of the notary, who is responsible for preparing the purchase contract, and the land registry, which records the transfer of ownership. It’s also important to understand the taxes and fees involved in the purchase, such as the real estate transaction tax (Grunderwerbsteuer), fees for the notary and the sales contract and others.
We can help you navigate the German legal system and ensure that your purchase is in compliance with all applicable laws and regulations.
4. Financing options
When buying a property in Germany, there are several financing options available to you. You can apply for a mortgage or loan through a German bank or through an international lender. It’s important to do your research and compare rates to find the best financing option for your needs. For a German bank or financing institution there might be regulations regarding your migration status, which will make it more difficult or in some cases even impossible for you to finance property, if your current status or residence permit is not as requested.
E.g. a temporary residence permit might not be suitable, whilst a permanent residence permit is almost as good as having a german or european passport in the first place. Hit us up for further details or informations on this behalf.
5. Property search
Once you have determined your preferred location, it’s time to start your property search. You can search for properties online, through real estate agents or by attending property auctions. It’s important to visit properties in person and thoroughly inspect them regarding the technical and visual condition.
In Germany, buildings are regularly built of concrete and stone and therefore more long-lasting than e.g. houses in the US, which are mostly made from wooden components. But that also requires a more specific inspection of the property to be sure to buy a suitable home, which will not require substantial investments in the building substance within the next years after.
The range of available properties is wide, from the one-bedroom-apartment within the heart of the city to the historic luxury home in the countryside. Before specifically searching for the suitable home, you should make up your mind and determine what amount you are able to invest. We can help you with that due to our long-term knowledge of the german housing market and financial conditions.
The most used real estate platforms are:
Thanks for your time and stay tuned for the next article, which will further dive into the single steps to notice before buying real estate property in Germany.
With best regards